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[Cites 17, Cited by 3]

Jharkhand High Court

Management Of Bokaro Steel Cit vs Gen. Sec. Bokaro Karamchari Pa on 9 September, 2016

Equivalent citations: 2017 AJR 100, (2017) 152 FACLR 330 (2017) 1 JCR 307 (JHA), (2017) 1 JCR 307 (JHA)

Author: Aparesh Kumar Singh

Bench: Aparesh Kumar Singh

                             W. P. (L) No. 3925 of 2002
              An application under Article 226 of the Constitution of India
                                    ----

Management of Bokaro Steel Plant of Steel Authority of India Ltd., Bokaro Steel City, District- Bokaro ....Petitioner.

-Versus-

1. The General Secretary, Bokaro Karamchari Panchayat, Sector-III, Bokaro Steel City, Bokaro

2. The Presiding Officer, Labour Court, Bokaro .....Respondents.

---

      For the Petitioner                    : Mr. G. M. Mishra, Adv.
      For the Respondents                   : M/s. Sumeet Gadodia
                                            & Prem Pujari Roy, Advs.
                                    ---
                                PRESENT
              HON'BLE MR. JUSTICE APARESH KUMAR SINGH

By Court,    Heard learned counsel for the parties. 

2. The   Management­Petitioner   has   preferred   this   writ   petition  being aggrieved by Award dated 17th January, 2001 (pronounced on  25th January, 2002) (Annexure­8) in Reference Case no. 15 of 1998 by  learned   Presiding   Officer,   Labour   Court,   Bokaro   Steel   City.   The  learned Labour Court has by the impugned Award held the reference  as maintainable and the action of the management not to regularize  the   services   of   the   concerned   workmen   is   not   justified.     It   has  accordingly   held   that   the   concerned   workmen   are   entitled   for  regularization   of   their   services   from   26th   May,   1995   (the   date   of  submission   of   statement   of   demand)   with   all   back   wages   and  consequential benefits.  

3. The Government of Bihar vide its notification dated 21st July,  1998   made   the   following   reference   for   adjudication   before   learned  Labour Court, Bokaro Steel City:

"whether   not   to   regularize   the   service   of   the   Football   Players: 1) Shri Mahendra Rana, 2) Habibulla 3) Ravi   Kumar   4)   Anil   Kumar   5)   Sanjiv   Kumar   6)   Sunil   Kr.  
7) Rohit Mukherjee 8) Paban 9) Ram Bahadur 10) Lal   Bahadur and 11) Rajesh Kumar of Bokaro Steel Plant,   Bokaro Steel City by the Management is justified? If not   what relief the players are entitled to" 

4. In   order   to   address   the   grounds   urged   in   support   of   the  challenge to the impugned Award by the Petitioner­Management, the  2. necessary   foundational   facts   as   borne   out   from   the   records   are  noticed hereinafter.  

The   workmen   raised   industrial  dispute   by   making   a  demand  dated   26th  may,  1995  (Annexure­1) before  the  Managing Director,  SAIL, Bokaro  Steel City for regularization of salary and other benefits  to the Football players.  They contended that they have been engaged  on stipend since last 1991 and are sportsmen/football players, who  are participating in Inter Steel  Football Matches organized by Bokaro  Steel Plant under Sports Council of the Management.   They are not  being paid salary at par with other players as they are regular football  players.  Eleven persons therefore alleged victimization in not treating  them at par with the enrolled employees of B.S.L.  On these demands  and on failure to arrive at conciliation between the workmen and the  Management,   the   reference   was   made   by   the   appropriate  Government of State of Bihar.  

5.       The workmen set up their cases through their written statements  that they are entitled for due wages and regularization of services. The  Management  has  previously regularized  the  services of many  other  players from the Sports Council and that they are entitled for similar  benefits of regularization.  The management put up its case that plea  of   regularization   is   misconceived   as   there   is   no   employee   and  employers relationship  between them.   It  also pleaded  that Bokaro  Steel  Sports   and   Recreation   Council   (B.S.S&R.C)   is  an   independent  and autonomous body, at time financed by Bokaro Steel Sports Club/ Association.   It also stated that Bokaro Steel Plant does not have its  own   team   of   football   players.     A   limited   number   of   wards   of   the  employees of Bokaro Steel Plant are there in the Sports Club, some of  these players were at time included in the team of Bokaro Sports  3. Club/Council   based   on   their   performance   in   the   game   during   the  years   and   that   some   of   them   also   participated   in   the   Inter   Steel  Football Tournaments during different years including other players,  some of whom happened to be the employees of Management. These  football players were paid  stipend at the rate of Rs. 500/­ per month  for about nine months by B.S.S and R.C and not by Management.  The  period of stipend was not extended for subsequent years 1995­96, but  their   engagement   on   stipendiary   basis   was   also   discontinued   by  Bokaro Sports Club as it did not bring the desired results.  The Bokaro  Steel Plant, a leading Unit in the Public Sector under Steel Authority of  India   Ltd.   (SAIL),   has   its   own   prescribed   Rules   and   Regulations,  Service Conditions, Recruitment and Promotion Rules. These persons  cannot claim regularization or appointment on the ground that they  happened   to   be   the   ward   of   employees;   their   claims   are   false   and  unwarranted.  Therefore, the demand is liable to be rejected. 

6. The learned Tribunal formulated three points for consideration  of the case: 

i) whether the reference is maintainable?
ii)   Whether   not   to   regularize   the   service   of   Football   Players   Shri   Mahendra   Ram,   Habibulla,   Ravi   Kumar,   Anil   Kumar,     Sanjiv   Kumar,   Shushil   Kumar,   Robin   Mukherjee,   Pawan,   Ram   Bahadur,   Lal   Bahadur   and   Rajesh Kumar of Bokaro Steel Plant, Bokaro Steel City   by the Management is justified? 
iii) Whether the workmen are entitled to any relief?  

All   the   points   have   been   dealt   together   and   answered   in  the  impugned   Award.     One   witness   M.   W­1,   Jai   Prakash   Lal,   Chief   of  Communication   Department   of   the   Company   and   the   Secretary   of  B.S.S & R.C since 1995 was produced by the Management. 

7. On   behalf   of   concerned   workman,   witness   no.   1,   S.   K.  Habibullah  was examined.  Certain documents were exhibited during  the course of deposition.  

4.

8. Learned Labour Court after consideration of the materials on  record   including   the   deposition   and   the   documentary   evidences,  came   to   a   finding   that   B.S.S   &   R.C     is   not   an   autonomous   body  independent of Bokaro Steel Plant.   It also came to the finding that  their   exists   relationship   of   employer   and   employee   between   the  management   and   workmen,   though   the   workmen   were   paid   small  sum of stipend monthly.  It also came to the conclusion that stipend  to these workmen was paid from May, 1991 till May, 1995 on the basis  of documentary evidence produced by either of the parties and the  statement of the witness for management and the workmen as well.  It  also made observation that the management's witness conceded that  the   concerned   workmen   are   competent   players   and   there   are   no  complaints   against   them.   Therefore,   there   was   no   valid   reason   for  discontinuance of stipend and removal of their names from the rolls  of council, which tantamounts to retrenchment within the meaning of  Section 2(oo) of Industrial Disputes Act, 1947.   It came to a finding  that all the concerned  workmen had put in more than 240 days of  continuous services and their retrenchment was bad in law and void  ab­initio.   In that case the provision of Section 25F of I.D. Act were  also   not   observed.    The   learned   Labour   Court   also   found   that   the  Management has deprived them of status and privilege of permanent  workmen despite utilizing their services for organization as a casual  employee. This amounted to unfair labour practices on the part of the  management within the meaning of Clause 1.10 of the Fifth Schedule  of I.D Act, 1947, which deserves to be deprecated as the Management  is an undertaking of Central Government.  It referred to the judgment  rendered   by   Apex   Court   reported   in  1996   LIC   967  in   the   case  of Chief Conservator of Forests and another etc. vs. Jagga Nath  5. Maruti Kondhare etc. on the point that if badlis, casuals or temporary  workers are continued as such for years it can be inferred that it was  with object to deprive them the status of permanent employees.   In  that case, the burden does not lie upon the workmen to establish that  object   of   employers   and   therefore   relief   of   regularization   with   all  benefits   of   permanent   workers   cannot   be   refused.    The   learned  Labour Court also took into account the instances of regularization of  certain football players, namely, Songa Pareya earlier as was evident  from Exts. W­3 and W­4.   in the employment of management.   W­6  and   W­7   were   also   evidenced   to   lend   support   to   their   contention  which   persuaded  the   learned   Labour   Court   to   come   to   an  opinion  that   such   regularization   had   taken   place.     It   also   took   note   of   the  statement  of  MW­1  that   after   coming  on  the   rolls   of the  Company  such persons continued to play on behalf of the Company, so long as  they remained capable.  However, the management witness had also  qualified the statement that regularization of their services had been  effected   through   the   normal   procedure   and   that   they   being  competent player was not the only consideration.  However, no such  documents were produced by the Management.  The learned Labour  Court therefore answered the reference in favour of the workmen by  holding in the terms as noted hereinabove directing the workmen to  be regularized in service from 26th May, 1995 with all back wages and  other consequential reliefs. 

9. Counsel   for   the   Management   has   assailed   the   findings   of  learned Labour Court mainly on the following grounds: 

(i)   The   finding   that   retrenchment   of   these   persons   by   the  management was in teeth of provisions of Section 25F of I.D. Act was  contrary to the terms of the reference. On such finding, a direction to  6. regularize is incompatible as there was no existence of employer and  employee relationship from the date on which regularization has been  directed i.e., 26th May, 1995.  

Reliance   has   been   placed   on   the   judgment   of   Apex   Court  rendered in the case of  Oshiar Prasad and others Vs. Employers in   Relation to Management of Sudamdih Coal Washery of M/s. Bharat   Coking Coal Limitd Dhanbad, Jharkhand  reported in  (2015) 4 SCC  71, paragraph 25 thereof.  

(ii) The Award is not inconformity with the ratio rendered by  Apex   Court   Constitution   Bench   Judgment   in   the   case   of   State   of  Karnataka Vs. Uma Devi reported in (2006) 4 SCC 1, as there is no  evidence on record to show that the engagement of the petitioner was  inconformity with procedure laid down under Articles 14 and 16 of the  Constitution   of   India.     In   the   absence   thereof   any   direction   to  regularize them would amount to  perpetuating  an  illegality.   He has  also relied upon a judgment rendered by the Apex Court in the case of  Hari Nandan Prasad and another Vs. Employer I/R to Management   of Food Corporation of India and another reported in 2014 (7) SCC  190, Paragraphs 34 and 39 thereof.  It has been canvassed that even in  industrial   adjudication,  the   learned   Labour   Court   in   such  circumstances ought to have examined whether there was availability  of   post   on   the   date,   on   which   regularization   was   directed   to   be  effected or there was an invidious discrimination vis­a­vis any other  similarly situated person.   This exercise has not been undertaken by  the  Labour  Court directing  regularization in general terms  of these  workmen   on   suitable   designation   commensurate   with   their  qualification   which   is   in   itself   in   vague   direction   impractical   to   be  implemented.   

7.

(iii) On the question of validity of reference he has relied upon  the   judgment   rendered   by   the   Apex  Court   in   the   case   of  National   Engineering   Industries   Ltd.   Vs.   State   of   Rajasthan   and   others  reported   in  2000   LAB   I.C   260.  It   is   submitted   that   the   question   of  validity of reference could only be raised in a proceeding under Article  226   of   the   Constitution   of   India.     Therefore,   the   challenge   to   the  reference on the nature of dispute referred is being pressed as these  workmen   had   raised   a   totally   different   demand   before   the  Management.  

(iv) On the grounds of parity raised by the petitioner now with  employee   like   Anil   Kumar   who   has   been   regularized   in   service  pursuant   to   the   adjudication   in   Reference   Case   no.   6/1995   by  Presiding Officer, Labour Court, Bokaro Steel City, it is submitted that  these petitioners do not stand at par with the said workman in terms  of the length of service, the nature of duties performed, the scale or  grade on which he had worked etc.  The   findings   of   fact   on   such   relevant   factors   recorded   by  learned Labour Court in that case upheld to the Apex Court are absent  in the case of the present petitioner. Therefore, the case of Anil Kumar  is distinguishable on the facts.  

10. Learned counsel for the Management however has submitted  that the grounds relating to the autonomous status of B.S.S & R.C may  not be open to be raised after adjudication in Anil Kumar's Case upto  Apex Court judgments. The Award and the judgments of High Court  and the Apex Court are enclosed as Annexures: A to D in the counter  affidavit   of   the   respondent   workmen.     However,   on   other   relevant  facts, the case of the present workmen are distinguishable from that of  Anil Kumar's case.  On all those grounds, therefore, the impugned  8. Award   suffers   in   the   eye   of   law   as   well   as   on   fact   and   warranting  interference   by   this   Court   under   Article   226   of   the   Constitution   of  India 

11. Learned counsel for the workmen have defended the impugned  Award. It is their case that findings recorded by learned Labour Court  on   the   question   whether   B.S.S   &   R.C   is   not   an   autonomous  organization independent of Bokaro Steel City is unassailable in view  of the judgments on the same point in the case of Anil Kumar upto  Apex   Court.     The   said   Anil   Kumar   has   consequentially   been  regularized in service.  It is further submitted that findings relating to  status of the workmen and their engagement since May, 1991 to 1995  are also not open to challenge as no infirmity or perversity has been  manifestly shown by the Management in the findings recorded.  It is  the case of the workmen that they stand on the same footing as that of  other persons like  Songa Pareya  or Anil Kumar and few others, who  have been regularized in service by the same Management on suitable  designated   posts   commensurate   with   their   qualification.     These  workmen do not insist on any particular post or grade but are inclined  to   accept   regularization   from     due   date   on   any   post   which   is  commensurate with their qualifications.  After 20 years of the demand  being raised now these workmen would be left with no avenue for any  other gainful employment at this stage of their life. This Court may  therefore   suitably   mould   the   relief  in   such   circumstances   while  upholding the impugned Award. The impugned Award, however, does  not suffer from any errors on the finding of fact or on the application  of law to the question posed.   It is submitted that the writ petition  should be accordingly dismissed.  

9.

12. In support of their submission, reliance has been placed on the  judgment of Apex Court rendered  in the cases reported in   (2015) 9  SCC 345, (2010) 3 SCC 637.   It is further submitted that the plea of  absence of sanctioned post is not open for them to be taken as no  such grounds were urged before the learned Labour Court at the time  of adjudication of reference. 

13.  I have considered the submission of the parties at some length  and   gone   through   the   relevant   records   including   the   impugned  Award.   The status of B.S.S & R.C     as an autonomous organization  independent   of   Bokaro   Steel   Plant,   is   no   longer   an   issue   open   for  challenge. Apart from the findings recorded by learned Labour Court  on the issue the status of B.S.S & R.C as a part of Bokaro Steel Plant,  it  stands   determined   in   the   case   of   Anil   Kumar   pursuant   to   the  adjudication   made   in   Reference   Case   No.   6/95   by   learned   Labour  Court, Bokaro Steel City and upheld upto the Apex Court. 

14. Counsel for the management has also not been able to dislodge  the findings of fact recorded by learned Labour Court on the question  of engagement of these workmen on stipend basis since 1991 till 1995.  It would be only proper to refer to the discussions made on the issue  by learned Labour Court at paragraph nos. 13, 15, 17, 18 and 19 of the  impugned Award. The document as Ext.­M­1,  letter dated 13th May,  1991   issued   with   approval   of   Managing   Director   of   the   Company  shows   the   selection   of   15   football   players   including   the   concerned  workmen, on stipendiary payment for a period of one year. Learned  Labour Court has found this evidence to corroborate the statement of  WW­1 that payment of stipend was started in the year 1991. It also  refers   to   statement   of   M.W­1,   in   his   deposition,   at   para   5  that documents relating to payment of stipend to the concerned  10. workmen were available in the office. These documents which could  have clearly shown the period of employment of workmen since May,  1991  were   however   not   brought   on   record   by   the   Management.  Further stipened for the month of January,1995, were found to have  been paid to these workmen in May, 1995 which was supportive of the  version of the workmen that they were in receipt of such stipend from  May 1991 till May 1995.   These workmen through their witness have  also stated that they were required to report to concerned authority  daily in the morning and evening hours except on days of weekly off.  Absence without information invited  deduction from the stipendiary  payment   which   was   not  rebutted   by  the   management  nor   has   any  suggestion to the contrary been made to him. Ext. W­1, office order  dated 3rd August, 1992 issued by Deputy Manger, Mr. R. A. Khan of  the   Management   company   indicates   approval   of   the   competent  authority of the company for their participation in some tournaments  wherein besides the names of regular player­employees, the names of  certain  concerned workmen also appear as members of the team. The  name   of   the   concerned   workmen   also   appear     in   W­2   dated   19th  November,   1994   issued   by   the   Executive   Director   of   the   Company  showing them as employees on the rolls of Bokaro Steel Sports and  Recreation Council with a request to organizing Secretary Inter Steel  Plant Football championship 1994 TISCO Jamshedpur to allow them  to represent Bokaro Steel Plant Football Team.   This document has  been   held   by   Labour   Court   to   deny   the   averments   made   by   the  Management  that  Bokaro  Steel  City  does   not  have   its  own  football  team of football players.   Reference has been made to exhibits W­9  and W­11 dated 26th November, 1994 and W­12 dated 21st December,  1994 as also to Ext. M­2 to M­8 by learned Labour Court.  11.

15. In view of these documentary evidences and the statements of  witness for management as well as the workmen, the learned Labour  Court was persuaded  to hold that contention of the Management that  these   workmen   ceased   to   be   on   the  rolls  of   the   management   after  completion of their initial employment on stipendiary payment is not  correct.  Based on these evidences, the learned Labour Court came to  a   finding   that   there   exists   a   relationship   of   employer­employee  between   the   management   and   these   workmen.   The   second   issue  relevant   for   determination   before   learned   Labour   Court   on   the  question of engagement of these workmen on stipendiary basis from  May   1991   till   May   1995  and   existence   of   employer   and   employee  relationship therefore stood answered in favour of workmen.  

16. At this stage, it would be proper to deal with the grounds of  challenge by learned counsel for the management about  the mode of  engagement or recruitment of these workmen as casual employees on  stipendiary   basis   being,   assailed   on   the   grounds   of   illegality   and  failure to follow the principles enshrined in Articles 14 and 16 of the  Constitution of India.  

17. The   definition   of   workmen   under   Industrial   Disputes   ActSection 2(s) reads as follows:

"   workman"   means   any   person   (including   an   apprentice) employed in any industry to do any   manual,   unskilled,   skilled,   technical,  operational,   clerical   or   supervisory   work   for   hire   or   reward,   whether   the   terms   of   employment be express or implied, and for the   purposes   of   any   proceeding   under   this   Act   in  relation to an  industrial  dispute,  includes any  such person who has been dismissed, discharged   or   retrenched   in   connection   with,   or   as   a   consequence   of,   that   dispute,   or   whose   dismissal, discharge or retrenchment has led to   that   dispute,   but   does   not   include   any   such  person­ 12.
(i) who is subject to the Air Force Act, 1950 (45 of   1950), or the Army Act, 1950 (46 of 1950), or the   Navy Act, 1957 (62 of 1957); or
(ii) who is employed in the police service or as an  officer or other employee of a prison; or
(iii) who is employed mainly in a managerial or   administrative capacity; or
(iv)   who,   being   employed   in   a   supervisory   capacity, draws wages exceeding [ten thousand   rupees]   per  mensem   or  exercises,   either   by   the   nature of the duties attached to the office or by  reason   of   the   powers   vested   in   him,   functions   mainly of a managerial nature]   

18. In that context, it would be proper to refer to the opinion of the  Apex Court on the import and ambit of the exhaustive definition of  the   term   of   workman,   as   held   in   the   case   of  Devinder   Singh   Vs.   Municipal Council, Sanaur reported in 2011(6) SCC 584. Paras 12 to  14 of the report are quoted hereunder: 

12.  Section 2(s) contains an exhaustive definition of  the term 'workman'. The definition takes within its   ambit any person including an apprentice employed   in any industry to do any manual, unskilled, skilled,  technical, operational, clerical or supervisory work   for   hire   or   reward   and   it   is   immaterial   that   that   terms of employment are not reduced into writing. 

The definition also includes a person, who has been   dismissed,   discharged   or   retrenched   in   connection   with   an   industrial   dispute   or   as   a   consequence   of   such   dispute   or   whose   dismissal,   discharge   or  retrenchment   has   led   to   that   dispute.   The   last   segment of the definition specifies certain exclusions.   A   person   to   whom   the   Air   Force   Act,   1950,   or   the  Army Act, 1950, or the Navy Act, 1957, is applicable  or who is employed in the police service as an officer   or   other   employee   of   a   prison   or   who   is   employed   mainly in managerial or administrative capacity or  who   is   employed   in   a   supervisory   capacity   and   is   drawing   specified   wages   per   mensem   or   exercises   mainly   managerial   functions  does   not   fall     within   the definition of the terms "workman.  

13.  The   source   of   employment,   the   method   of   recruitment,   the   terms   and   conditions   of   employment/contract   of   service,   the   quantum   of   wages/pay and the mode of payment are not at all   relevant  for  deciding whether  or not  a person  is a   workman within the meaning of Section 2(s) of the   Act. It is apposite to observe that the definition of  13. workman   also   does   not   make   any   distinction   between   full­time   and   part­time   employee   or   a   person   appointed   on   contract   basis.     There   is   nothing in the plain language of Section 2(s) from   which it can be inferred that only a person employed   on a regular basis or a person employed for doing   whole­time job is a workman and the one employed   on temporary, part­time or contract basis on fixed   wages or as a casual employee or for doing duty for   fixed hours is not a workman. 

14.  Whenever   an   employer   challenges   the  maintainability of industrial dispute on the ground   that   the   employee   is   not   a   workman   within   the   meaning of Section 2(s) of the Act, what the Labour   Court/Industrial Tribunal is required to consider is  whether the person is employed in an industry for   hire or reward for doing manual, unskilled, skilled,   operational,   technical   or   clerical   work   in   an   industry.     Once   the  test   of   employment   for   hire   or  reward   for   doing   the   specified   type   of   work   is   satisfied,   the   employee   would   fall   within   the   definition of "workman". 

19. From the quoted text hereinabove, it is apparent that the Apex  Court has held that the exhaustive definition of the term 'workman'  takes within its ambit any person including an apprentice employed  in   any   industry   to   do   any   manual,   unskilled,   skilled,   technical,  operational, clerical or supervisory work for hire or reward and it is  immaterial that terms of employment are not reduced into writing.  The source of employment, the method of recruitment, the terms and  conditions of employment/contract of service, the quantum of wages/ pay   and   the   mode   of   payment   are   not   at   all   relevant   for   deciding  whether or not a person is a workman within the meaning of Section  2(s)   of   the   Act.   It   has   been   observed   that   that   the   definition   of  workman also does not make any distinction between full­time and  part­time employee or a person appointed on contract basis.  There is  nothing   in   the   plain   language   of   Section   2(s)   from   which  it  can  be  inferred  that  only  a  person  employed  on  a  regular  14. basis or a person employed for doing whole­time job is a workman  and the one employed on temporary, part­time or contract basis on  fixed wages or as a casual employee or for doing duty for fixed hours is  not a workman. 

Therefore,   such   a   ground   of   illegality   to   question   the  engagement of the workmen on stipendiary basis for the period May  1991 till May 1995 by the Management is not a germane issue to be  dealt with in an industrial adjudication where a reference has been  made on the question of regularization of workmen. The challenge to  the validity of the reference after having consciously participated in  the proceeding before the Labour Court without raising an objection  thereto is also not fit to be entertained at this stage.  

20. Counsel   for   the   management   has   while   relying   upon   the  judgment rendered by the Apex Court in the case of Uma Devi(Supra)  has also fairly based his submission on the ratio rendered by Apex  Court   itself   in   the   case   of  Hari   Nandan   Prasad   and   another   Vs.   Employer   I/R   to   Management   of   Food   Corporation   of   India   and  another reported in 2014 (7) SCC 190, reported in 2014 (7) SCC 190,  where the principles enshrined in the Constitution Bench Judgment  in the case of Uma Devi has been read with the principles on which  the industrial adjudication is to be arrived at by the Labour Court on  such   question   of   regularization.   Para   34   and   39   of   the   report   is  apposite to be quoted hereunder: 

34.  A close scrutiny of the two cases, thus, would reveal   that   the   law   laid   down   in   those   cases   is   not   contradictory to each other. In U.P. Power Corpn. this   Court   has   recognized   the   powers   of   the   Labour   Court   and at the same time emphasized that the Labour Court   is to keep in mind that there should not be any direction   of regularization if this offends, the provisions of Article   14   of   the   Constitution   on   which   the   judgment   in   Umadevi is primarily founded. On the other hand, in  15. Bhonde case, the Court has recognized the principle that   having   regard   to   the   statutory   powers   conferred   upon   the   Labour   Court/Industrial   Court   to   grant   certain   reliefs   to   the   workmen,   which   includes   the   relief   of   giving   the   status   of   permanency   to   the   contract   employees, such statutory power does not get denuded by   the   judgment   in   Umadevi   case.     It   is   clear   from   the   reading   of   this   judgment   that   such   a   power   is   to   be   exercised   when   the   employer   has   indulged   in   unfair   labour practice  by not filing up permanent posts even   when   available   and   continuing   to   employ   workers   on   temporary/daily­wage basis and taking the same work   from   them   and   making   them   do   some   purpose   which   was being performed by the regular workers but paying   them   much   less   wages.     It   is   only   when   a   particular   practice   is   found   to   be   unfair   labour   practice,   as  enumerated in Schedule IV of the MRTP and PULP Act,  and it necessitates giving direction under Section 30 of   the said Act, that the court would give such a direction. 
39.  On   a   harmonious   reading   of   the   two   judgments  discussed   in   detail   above,   we   are   of   the   opinion   that   when   there   are   posts   available,   in   the   absence   of   any   unfair labour practice the Labour Court would not give  direction for regularization only because the worker has   continued   as   daily­wage   worker/ad   hoc/temporary   worker for number of years. Further if there are no posts   available, such a direction for regularization would be   impermissible.  In the aforesaid circumstances giving of  direction to regularize such a person, only on the basis of   number of years put in by such a worker as daily­wager,   etc.   may   amount   to   back   door   entry   into   the   service   which is an anathema to Article 14 of the Constitution. 

Further, such a direction would not be given when the  worker   concerned   does   not   meet   the   eligibility   requirement   of   the   post   in   question   as   per   the   recruitment rules.   However, wherever it is found that   similarly   situated   workmen   are   regularized   by   the   employer itself under some scheme or otherwise and the   workmen   in   question   who   have   approached   the  Industrial/Labour   Court   are   on   a   par   with   them,   direction of regularization in such cases may be legally   justified, otherwise, non­regularization of the left­over   workers   itself   would   amount   to   invidious   discrimination   qua   them   in   such   cases   and   would   be   violation   of   Article   14   of   the   Constitution.     Thus,   the   industrial adjudication would be achieving the equality   by   upholding   Article   14,   rather   than   violating   this   constitutional provision. 

From the opinion of the Apex Court rendered on a harmonious  reading of the judgments on the point, it is evident that when there  are posts available, in the absence of any unfair labour practice, the  16. Labour Court would not give direction for regularization only because  the   worker   has   continued   as   daily­wage   worker/ad   hoc/temporary  worker for number of years. Further if there are no posts available,  such   a   direction   for  regularization  would  be   impermissible.     It  has  further   opined   that   in   such   circumstances   giving   of   direction   to  regularize such a person, only on the basis of number of years put in  by such a worker as daily­wager, etc. may amount to back door entry  into the service which is an anathema to Article 14 of the Constitution.  Further,   such   a   direction   would   not   be   given   when   the   worker  concerned   does   not   meet   the  eligibility   requirement   of   the  post   in  question   as   per   the   recruitment   rules.     However,   there   is   a   caveat  added that wherever it is found that similarly situated workmen are  regularized by the employer itself under some scheme or otherwise  and   the   workmen   in   question   who   have   approached   the  Industrial/Labour   Court   are   on   a   par   with   them,   direction   of  regularization in such cases may be legally justified, otherwise, non­ regularization   of   the   left­over   workers   itself   would   amount   to  invidious   discrimination   qua   them   in   such   cases   and   would   be  violation of Article 14 of the Constitution of India.   The Apex Court  therefore, held that the industrial adjudication would be achieving the  equality   by   upholding   Article   14,   rather   than   violating   this  constitutional provision. The Hon'ble Court has however also made it  clear   that   the   aforesaid   examples   are   only   illustrative.     It   would  depend   on   the   facts   of   each   case   as   to   whether   the   order   of  regularization is necessitated to advance justice or it has to be denied  if giving of such a direction infringes upon the employer's right. 

21. In the facts of the present case as has been dealt hereinabove  the plea raised by the management relating to the cession of employer  17. or employee relationship sometime in January,  1995 disentitling the  claim of regularization in such cases by  relying upon the judgment  rendered by the Apex Court rendered in the case of  Oshiar Prasad   and others Vs. Employers in Relation to Management of Sudamdih   Coal   Washery   of   M/s.   Bharat   Coking   Coal   Limitd   Dhanbad,   Jharkhand reported in (2015) 4 SCC 71, however is distinguishable on  the facts of the case. As is noted from the facts of the case of Oshiar  Prasad  (Supra),   the   workmen   in   question   had   been   disengaged  during the pendency of the Title Suit No. 51 of 1980 preferred against  the BCCL  in the Court of Munsiff­II, Dhanbad though the trial court  had   finally   decreed   the   suit   on     27th   May,   1983   holding   that   the  plaintiffs are entitled to regularize in services of BCCL. The matter was  taken   upto   the   Apex   Court   through   the   stages   of   writ   petition   and  Letters   Patent   Appeal   preferred   before   this   Court   by   the   aggrieved  parties.  The Hon'ble Supreme Court in Special Leave Petition (C) No.  4495 of 1994, by order dated 14th November, 1994, however, dismissed  the   appeal   of   the  appellant   plaintiff   with   a  liberty  to  approach   the  Industrial Tribunal for claiming of any appropriate relief, if so advised.  It was only thereafter that the Reference under Section 10 was made  by   the  Central  Government   on   the  question   whether   the   workmen  were entitled for absorption as regular  employees. The Award dated  21st December, 1998 answered the same against the workmen.  

22. In the aforesaid factual matrix of the case, the Hon'ble Supreme  Court   arrived   at   the   opinion   that   the   question   of   absorption   or  regularization   would   not   have   arisen   as   the   workman/appellant   at  whose instance reference was made were terminated long back prior  to making reference from the facts of the instant case.  In the facts of  the present case, however, it is evident that on 26th May, 1995 itself,  18. the month in which they were disengaged, the demand for according  parity with regular employee in the matter of salary etc. was raised by  the  workmen in question which  led to the  industrial dispute  being  referred by the appropriate Government vide notification dated 21st  July, 1998.   Learned Labour Court in those circumstances came to a  finding that cession of their engagement since 26th May, 1995 without  observing the provisions of Section 25F of the Industrial Disputes Act,  1947   was   not   proper.     However,   the   Learned   Labour   Court   having  observed   as   above   proceeded   to   answer   the   reference   by   directing  regularization of the workmen since 26th May, 1995 i.e., date of raising  of the demand by the workmen before the Management. 

23. However, on perusal of the impugned Award, even after  leaving  aside   the   observation   relating   to   retrenchment,   the   materials  adduced   during   the   industrial   adjudication   independently   are  sufficient to support its answer to the reference in question. 

24. Having said that in view of the ratio rendered by the Apex Court  in   the   case  Hari   Nandan   Prasad   and   another(Supra)  reported   in  2014(7) SCC 190, it cannot also be lost sight of that learned Labour  Court   was   also   required   to   address   itself   on   the   question   of   the  availability of sanctioned post with the Management before directing  the   regularization   of   individual   workmen.   This   approach   was  warranted   in   view   of   the   facts   that   the   industrial   adjudicator   in  matters of granting of relief in a case of public instrumentality where  under Articles 14 and 16 of the Constitution  of India are also required  to be observed, has an obligation to satisfy itself on that aspect of the  matter.     In   that   way,   the   implementation   of   the   direction   for  regularization with effect from 26th May, 1995 may also be depending  upon availability of sanctioned vacant post with the Management, a  19. Unit of public sector undertaking i.e, Steel Authority of India Ltd. It is  to be noted here that the Labour Court came to a finding of unfair  labour   practice   on   the   part   of   the   Management   in   not   giving  permanent   status   to   these   workmen   despite   keeping   them   in  employment for a number of years.

25. On the question of parity it is also necessary to compare the  findings of fact in the case of Anil Kumar whose judgment have been  enclosed   to   the   counter   affidavit   by   the   workmen   themselves.   It   is  evident therefrom that the said persons had been appointed in 1985  itself and had continued for sufficient length of time for 10 years as a  Junior Sports Officer. He had also been transferred from one place to  another   which   facts   have   been   taken   note   of   not   only   by   learned  Labour   Court   but   also   by   learned   Single   Judge   as   an   attribute   of  employer­employee   relationship   in   the   challenge   led   by   the  Management. His case therefore may not stand on same footing as  those of the persons.   In the present case, however, there are other  evidences   on   record   before   learned   Labour   Court   such   as  regularization of an employee, Songa Pareya   since August, 1982 or  certain exhibits in the nature of W­6 & W­7 of certain employees who  have been regularized in service.

 However, the findings recorded by learned Industrial Court in  the impugned Award on overall consideration do not appear to suffer  from any legal or factual infirmity.

26. In that event after 21 years of the dispute being raised on 26th  May, 1995 and the reference referred in 1998 having been answered  by the impugned award on 17th January, 2002 itself, it would not only  be   a   wholly   futile  exercise  but   hugely   onerous   for   the   workman  to  remand the matter before the learned Labour Court to deal with the  20. question of availability of sanctioned and vacant post for the purposes  of regularization of the workmen in question. Therefore in order to  effect   a   just   resolution   of   the   situation   faced,   it   is   considered  appropriate to mould the relief granted by the learned Labour Court.  The   petitioner­Management   would   therefore   consider   the  regularization of the workmen in question from the date of availability  of sanctioned vacant post commensurate with their qualification in  the proper grade.  This exercise should be undertaken within a period  of 16 weeks from the date of a certified copy of this order. This Court is  also   of   the   view   that   in   the   totality   of   facts   and   circumstances  therefore   the   direction   to   grant   the   entire   back   wages   and   other  consequential benefits also requires to be modified.   The individual  workmen would be entitled to the back wages to the extent of 25%  only   from   the   date   of   regularization.     However,   for   the   purpose   of  fixation  of their salary and other post retiral benefits, they would be  treated     to   be   in   continuous   service   from   the   date   of   their  regularization.  This would meet the ends of justice. 

27. The writ petition is accordingly disposed of with the aforesaid  observations and directions.         

          

(Aparesh Kumar Singh, J) Jharkhand High Court, Ranchi The 9th September, 2016 Jk/AFR