difference between public corporation and departmental organisation

Topics: Corporation, Government-owned corporation, Corporations law Pages: 3 (348 words) Published: September 26, 2013
Public Corporation:

1. It is an instrument of the Government. It is also called statutory corporation.

2. It is a purely commercial.

3. It is an autonomous body.

4. Examples:

ONGC, RTC, LIC, FCI, Damodar Valley Corporation, Air India, etc

5. There are two different basic concepts in the management of public corporations, viz. autonomy and accountability.

6. The structure of the public corporation cannot be amended by Government itself. The structure of the public corporation can be altered only by Parliament.

7. It has its own independent administration.

8. It is a separate juristic person. It can sue and can be sued.

9. For tortious liability, it is held liable. Article 300 does not apply.

10. Section 123 (Privilege of Communications of State Affairs) of Evidence does not apply to public corporations.

11. Article 299 does not apply to public corporations.

12. The labor problems between the employees and public corporations shall be settled by way of Industrial Tribunals and Labour Courts.

13. Industrial Employment Standing Orders Act, 1946 shall apply to the public corporations.

14. The employees are not civil servants.
Government Departmental Undertaking:

1. It is purely government; it is also called as Government Company.

2. It does not possess commercial qualities.

3. It is not an autonomous body. It is purely under the control of the Government and Minister concerned.

4. Examples: Railways, Postal & Telegraphs etc.

5. These two concepts are not seen in Govern­ment Departmental undertakings.

6. The articles of association of Government Company can be amended by the Govern­ment without any reference to Parliament.

7. It is a part of executive.

8. It is not a juristic person. It can sue or can be sued on the name of the Minister or Secretary concerned.

9. For tortious liability, Article 300 applies. The’ Government can claim Crown Privilege in certain cases.

10. Section 123...
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