Introduction There could be hardly two opinions over the fact that any nations rate of development is directly

proportionate to the rate of development of infrastructure. And the contribution of large scale industries in the infrastructural aid is indisputable. The small scale industries and the private sector, undoubtedly, contribute to the efficiency but they cannot replace the reach and capacity of the large scale industries. Thus it wont be wrong if I opine that smooth functioning of the large scale industries results in the better functioning of a nation. The large scale industries require huge investment and results in slow and low returns. Due to this nature the large scale industries like Steel Plants and Heavy machine manufacturing plants are primarily owned by the Government, known as Public Sector Undertaking (PSU). The smooth functioning of any large scale industry depends on appropriate mixture of Money, Material, methods and Men. In todays work environment, the individual focus is more on returns. According to a survey, maximum people switch jobs for getting better remuneration and growth options. In such an environment, it becomes more of a challenging job for the Public Sector Undertaking companies to keep the men motivated and check the turnover rate. This is due to the fact that the nature of PSUs is welfare oriented, aimed at society development rather than profit earning. This results in low monetary incentives. And the government ownership also makes way for red tapism and bureaucracy resulting in lengthy decision making process. This is one important reason for dissatisfaction amongst the employees. And here the importance of efficacy of Industrial relations comes into focus. This report presents the study of the differences between the laid down rules and regulations of a PSU, Heavy Engineering Corporation (HEC), and the actual practices. The objective of the study is to try to look into the efficacy of the industrial relation practices with or without toeing the rigid rules and regulations. The report will take a look into the canvas of the Industrial Relation while taking into consideration the shadow cast beyond. HEC has been a victim of Industrial disputes for a very long time. The Union Problems here have stalled its growth to some extent. Can an organization of such stature go wrong somewhere? Is the, or was the, dispute solving machinery not efficacious? Being under the direct control of the Ministry of Heavy Industries, there is no question of negligence or ignorance of rules. So what was wrong? And if something was wrong, what steps were taken to put it right? This report, titled The Canvas and The Shadow Beyond, shows the industrial relations of HEC and also some portion that is covered in the shadows but contributes, both, in positive and in negative way.