Centre has ‘pervasive’ control over Namma Metro: Karnataka HC

Bengaluru: In a significant ruling, the High Court of Karnataka has held that the union government exercises pervasive control over the Bangalore Metro Rail Corporation Limited (BMRCL), with the state government playing a secondary role.

The court said the state government lacks competence to notify BMRCL services as a ‘public utility service’ under Section 2(n)(vi) of the Industrial Disputes Act and as an ‘essential service’ under Section 2(1) of the Karnataka Essential Services Maintenance Act.

"It is indeed true that the state government, which has 50% shareholding like the central government, has certain significant roles to play in BMRCL. However, the final say in key administrative actions is that of the central government, and the state government has to take approvals or concurrence from the central government in certain crucial administrative decisions," Justice Ananth Ramanath Hegde stated.

The court was hearing petitions filed by the Centre, BMRCL, and the BMRCL Employees’ Union. Justice Hegde said the Central Government Industrial Tribunal shall proceed to adjudicate the reference.

The union had challenged the BMRCL Employees (Conduct, Discipline and Appeal) Rules, 2014, arguing that the appropriate government for BMRCL is the union government. It sought to restrain the state from granting exemption under Section 14 of the Industrial Employment Standing Orders Act, 1946.

BMRCL, however, contended that its employees mostly perform specialised supervisory roles and therefore are not workmen, seeking exemption under Section 14.

The Centre maintained that the state has no jurisdiction to declare BMRCL services as ‘Essential Services,’ since metro rail falls under the Union List governed by the Metro Railways (Construction of Works) Act, 1978, and the Metro Railways (Operation and Maintenance) Act, 2002.

The state government termed the petition premature, stating that BMRCL’s application seeking exemption under Section 14 was still under consideration.

After examining the provisions, the court observed that metro railways are governed by central legislations. "The state government, which is in charge of several operations of metro railway, has to act in establishing, maintaining and operating the railway only after necessary approval or concurrence of the central government," Justice Hegde said.

The court further held that BMRCL qualifies as a ‘railway company’ under the Industrial Disputes Act since it was established to build, operate, and maintain the metro railway under a Memorandum of Understanding executed among BMRCL, the Centre, and the state.

"To sum up, the court is of the view that the central government is the 'appropriate government' for two reasons: the central government has pervasive control over the BMRCL; BMRCL is a 'railway company' as defined under Section 2(o) of Act, 1947, read with Section 3(5) of the Indian Railways Act, 1890," Justice Hegde said.