Law:

Section:

(a) Companies Profits (Worker' Participation) Fund Act (XII of 1968)- -- Scheme, para. 1 (a) (i) & (iv)-Rice Export. Corporation engaged in milling, cleaning and export of rice-An industrial undertaking,. Order of Labour Court passed on application of Employees' Union under section 34 of Industrial Relations Ordinance, 1969 directing the res­pondent Rice Export Corporation of Pakistan Ltd. to establish workers' participation fund under the Companies Profits (Workers Participation) Act, 1968 was challenged before Labour Appellate Tribunal on plea that the Corporation was not an "Industrial undertaking" and the scheme of the Act applies only to companies engaged in "industrial undertaking" which satisfy any one of the conditions specified in para. 1 of the Scheme. It was contended that the Corporation is not engaged in any such under­taking as its essential function is merely to market rice which is procured through Government agencies and only operations which it undertakes are refining and participation of rice which do not constitute "industrial undertaking" because these processes neither change original condition of the commodity nor add to its value. It was also stated that according to para. 1 (a) (iv) of the Scheme the process of refining and purification constitute an "industrial undertaking" only in case of companies engaged in or deal with the commodities referred to in that para. and not in respect of rice Held : In order that a Company should be an industrial undertaking for the purposes of paragraph 1 (a) (i) of the Scheme of the Companies Profits (Workers' Participation) Act, 1968 it must fulfill the following essential conditions :- (a) It must be an institution, organization enterprise or establish­ment. (b) It should make use of electrical, mechanical, thermal, nuclear or any other form of energy, transmitted mechanically and not generated by human or animal agency. (c) It must be engaged in the subjection of goods or material to any manufacturing, assembly, financing or other artificial or natural process. (d) The process should be such as changes the original condition of the commodity or goods or adds to their value. It is not disputed…

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