40. (1) If in any accounting year an establishment in public sector sells any goods

produced or manufactured by it or renders any services, in competition with an establishment

in private sector, and the income from such sale or services or both, is not less than twenty

per cent. of the gross income of the establishment in public sector for that year, then, the

provisions of this Chapter shall apply in relation to such establishment in public sector as

they apply in relation to a like establishment in private sector.

(2) Save as otherwise provided in sub-section (1), nothing in this Chapter shall apply

to the employees employed by any establishment in public sector.