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Gujarat High Court

Bhavnagar Municipal Corporation & vs Rajubhai Ratnabhai Kalotara on 24 July, 2017

Author: K.M.Thaker

Bench: K.M.Thaker

                 C/SCA/7460/2010                                            ORDER




                 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                    SPECIAL CIVIL APPLICATION NO. 7460 of 2010
                                             TO
                    SPECIAL CIVIL APPLICATION NO. 7464 of 2010
         ==========================================================
               BHAVNAGAR MUNICIPAL CORPORATION & 1....Petitioner(s)
                                        Versus
                   RAJUBHAI RATNABHAI KALOTARA....Respondent(s)
         ==========================================================
         Appearance:
         MR HS MUNSHAW, ADVOCATE for the Petitioner(s) No. 1 - 2
         MR TR MISHRA, ADVOCATE for the Respondent(s) No. 1
         RULE SERVED for the Respondent(s) No. 1
         ==========================================================

          CORAM: HONOURABLE MR.JUSTICE K.M.THAKER

                                     Date : 24/07/2017


                                   COMMON ORAL ORDER

1. Heard Ms.Roshani Patel, learned advocate  for   Mr.Munshaw,   learned   advocate   for   the  petitioner   corporation   and   Mr.U.T.   Mishra,  learned advocate for the respondents. 

2. In this group of five petitions, similar  facts   and   common   contentions   against   the   awards  passed   by   the   learned   Industrial   Tribunal   are  raised.     Learned   advocates   for   the   contesting  1 HC-NIC Page 1 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER parties   have   put   forward   common   submissions   in  support   of   their   respective   case.     The   learned  Industrial   Tribunal   has   passed   separate   but  similar awards in respect of five claimants (five  reference   cases).   Therefore,   group   of   five  petitions is decided by this common judgment.  2.1 The   petitioner   -   Bhavnagar   Municipal  Corporation   has   placed   under   challenge   separate  but similar awards with directions passed by the  learned   Industrial   Tribunal   at   Bhavnagar   in  Reference   Case   Nos.74/2001,   55/2004,   64/2002,  33/2001 and 45/2004. 

2.2 Except   in   Reference  Case   No.74/2001,   in  which   the   case   the   learned   Industrial   Tribunal  passed   award   on   30.10.2009,   in   other   reference  cases, i.e. Reference Case Nos.55/2004, 64/2002,  33/2001   and   45/2004,   the   learned   Industrial  Tribunal passed awards on 16.11.2009.   2.3 By   the   impugned   awards,   the   learned  Industrial   Tribunal   has   directed   the   petitioner  2 HC-NIC Page 2 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER corporation   to   consider   the   claimants   as  permanent Peon with effect from the date of award  and to pay salary and other benefits on par with  permanent employee in the category of Peon, with  effect   from   22.8.2005,   however,   the   period   from  22.8.2005   till   the   date   of   award   should   be  considered   notional   and   the   workmen   would   be  entitled for actual payment of regular salary as  per   the   award   with   effect   from   the   date   of   the  award.   With   the   said   directions,   the   learned  Industrial Tribunal partly allowed the reference  cases.  

2.4 Feeling  aggrieved   by   the   said   reference  cases   and   the   awards,   the   corporation   has  preferred this group of petitions. 

3. So   far   as   the   factual   background   is  concerned, it has emerged that five claimants in  above mentioned reference cases raised industrial  dispute with the demand that from the date when  they   completed   three   years   of   service,   they  should be considered regular, permanent and full  3 HC-NIC Page 3 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER time   employee   in   the   category   of   Peon   and   that  they should be paid salary on par with full time  permanent   employee.   Appropriate   Government  referred the said demand for adjudication to the  learned   Industrial   Tribunal   vide   separate   but  almost   similar   terms   of   reference.   The   said  orders   of   reference   culminated   into   above  mentioned five reference cases. 

3.1 In their respective statements of claim,  the claimants alleged that they have been working  with   the   opponent   corporation   since   more   than  three years, however, the corporation pays fixed  salary of Rs.900/­ and that the corporation treat  them   as   part­time   employees.   The   claimants  alleged   that   initially,   they   were   engaged   on  part­time   basis   and   they   were   paid   fixed   wages  for 2 hours, i.e. Rs.200/­ and after they worked  for   about   two   years,   they   were   paid   Rs.600/­  fixed  wages  on  4  hours  /  day basis.    They  also  alleged   that   after   they   worked   for   about   six  months   on   4   hours   basis,   they   were   engaged   to  4 HC-NIC Page 4 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER work for full time, however, they were paid fixed  salary   at   Rs.900/­.   The   claimants   also   alleged  that they worked from 10.30 a.m. to 6.10 p.m. and  that   they   worked   regularly,   diligently   and  continuously   from   the   date   they   were   initially  engaged,   however,   they   were   not   paid   regular  salary   on   par   with   permanent   and   full   time  employees. The claimants alleged that with effect  from   11.4.2001,   the   corporation   arbitrarily  reduced their salary and the corporation started  paying them fixed wages on 4 hours / day basis.  With such allegation, the claimants raised demand  that they should be considered regular, permanent  and full time employees from the date when they  completed   three   years   service   with   the  corporation.   The   claimants   alleged   that   the  practice   of   the   corporation   to   pay   them   fixed  wages   for   many   years   though   they   worked   full  time,   which   amounted   to   unfair   labour   practice  and it also amounts to breach of Articles 14 and  16 of the Constitution of India. 

5 HC-NIC Page 5 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER 3.2 The   corporation   opposed   the   reference  cases.   In   its   written   statement,   the   opponent  corporation   claimed   that   the   claimants   worked  only part­time,i.e. For 4 hours per day and they  were   paid   salary   accordingly,   i.e.   part­time  basis. The corporation contended that the set up  of the permanent post is fixed by the Government  of   Gujarat   and   there   are   no   vacancies   on   the  sanctioned permanent set up. The corporation also  contended   that   the   claimants   were   engaged   on  casual, ad hoc and daily wage basis on account of  exigency   of   work   and   they   were   not   engaged   for  full time but they were engaged and they worked  only part­time, i.e. 4 hours per day, on the days  when they would be engaged. The corporation also  contended   that   the   claimants   never   worked   for  full   time   and   on   regular   basis   with   the  corporation and that, therefore, their demand for  status   of   permanent   and   full   time   employees   is  unjustified. 

3.3 After   the   parties   concluded   the  6 HC-NIC Page 6 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER pleadings,   the   learned   Industrial   Tribunal  received   evidence   from   both   sides   and   on  conclusion of evidence by both sides, the learned  Industrial   Tribunal   heard   rival   contentions   of  the   contesting   parties.   Thereafter   the   learned  Industrial   Tribunal   passed   impugned   award   with  above mentioned directions. 

4. Learned   advocate   for   the   corporation  assailed the award and submitted that the learned  Industrial   Tribunal   could   not   have   issued  direction   to   treat   the   claimants   as   regular,  permanent   and   full   time   employees,   when   the  claimants   were   working   on   part­time   basis  inasmuch   as   they   worked   for   4   hours   per   day.  Learned   advocate   for   the   corporation   submitted  that the claimants were engaged without following  prescribed   procedure   for   selection   and  recruitment.     It   is   also   contended   that   the  claimants had never worked on full time basis and  they had accepted appointment with the knowledge  that   they   are   engaged   only   on   part­time.   They  7 HC-NIC Page 7 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER also claimed that on completion of working hours,  i.e. 4 hours per day, the claimants were free to  work elsewhere and that, therefore, the direction  to treat the claimants as regular, permanent and  full   time   employees   is   unjustified.     Learned  advocate   for   the   petitioner   corporation   also  contended that there is no vacancy on sanctioned  and  permanent  set up  and that,  therefore,  there  is   no   possibility   to   treat   the   claimants   as  regular   and   permanent   employees   on   full   time,  that   too   in   absence   of   sanction   by   the   State  Government   and   that   the   claimants   cannot   be  considered   permanent   and   full   time   employees   on  non­sanctioned   posts.   She   submitted   that   the  learned   Industrial   Tribunal   passed   impugned  direction   without   considering   the   said  administrative   difficulty   on   account   of   absence  of   sanctioned   posts   on   the   establishment.  Learned   advocate   for   the   petitioner   corporation  emphasized   the   contentions   in   paragraph   Nos.5C,  5D and 5F of the petition, which read thus:  8

HC-NIC Page 8 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER "5C The Hon'ble Apex Court and the Hon'ble Full Bench  of the Hon'ble High Court of Gujarat has also held that  such irregularly employed daily wager, part­timers etc.  by   Municipal   corporations,   Panchayats,   Municipalities  or such other authorities cannot be made permanent on  regular, permanent, sanctioned posts as the said posts  are to be filled up  after  following due procedure of  recruitment   through   a   meritorious   candidates   after  giving equal opportunities to the competent candidates. 
D The petitioners submit that the respondent herein  was employed purely on temporary, adhoc and part time  basis without following due procedure of recruitment to  meet with the administrative exigencies and thereafter  continued   from   time   to   time   with   an   enhancement   in  consolidated   monthly   remuneration.   It   ought   to   have  been   appreciated  that   the   respondent  was  only   a   part  timer   and   never   employed   against   any   permanent,  sanctioned,   regular   post   which   are   required   to   be  filled   up   in   accordance   with   recruitment   rules   and  giving   equal   opportunities   to   all   competent   and  meritorious   candidates.   The   petitioners   submit   that  even   authorities   are   required   to   follow   the   roaster  system   also   while   filling   up   regular   permanent  sanctioned posts. In other words the respondent herein  who   was   employed   without   following   recruitment  procedure   has   no   right   to   claim   benefit   of  regularization   on   permanent,   sanctioned   post   without  following due procedure of recruitment. 
F The   petitioners   submit   that   Nagar   Prathmik  Shikshan  Samiti of  Bhavnagar  Municipal  Corporation  is  not   at   all   a   final   authority   on   any   administrative  policy   as   well   as   recruitment   and,   therefore,   its  resolution   No.27   passed   on   22.8.05   to   promote   the  respondent and similarly situated other part time Peons  to the post of full time permanent Peon was subject to  approval   from   the   higher   authority   like   Standing  Committee   as   well   as   General   Body.   The   petitioners  submit that the said resolution was turned down by the  Standing Committee through its Resolution No.271 passed  on   15.10.08.   It   is   submitted   that   the   Standing  Committee only resolved to enhance monthly remuneration  to Rs.1500/­ with effect from 1.10.08.  In other words  the Resolution of Nagar Prathmik Shikshan Samiti dated  22.8.05   was   not   at   all   approved   by   the   Standing  Committee of the Corporation."

Any other contentions are not raised. 4.1 Per   contra,   learned   advocate   for   the  9 HC-NIC Page 9 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER claimants,   i.e.   present   respondents   contended  that the arrangement on part­time basis was only  a   paper   arrangement,   whereas   actually   the  claimants   were   required   to   work   on   full   time  basis.   Learned   advocate   for   the   claimants  contended   that   the   claimants   were   paid   fixed  wages for long time and the request and demand by  the   claimants   for   salary   on   par   with   regular,  permanent and full time employees was repeatedly  denied by the corporation, despite the fact that  the   claimants   performed   similar   duties   and  functions   on   full   time   basis,   on   par   with  permanent   and   full   time   employees.   Learned  advocate   for   the   claimants   contended   that   the  corporation   illegally   and   arbitrarily  discriminated their services and their duties and  functions   as   against   the   permanent   workmen   and  thereby   the   corporation   committed   unfair   labour  practice.   He   submitted   that   the   award   and  direction   passed   by   the   learned   Industrial  Tribunal are based on evidence on record. Learned  advocate for the claimants submitted that similar  10 HC-NIC Page 10 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER issue   in   respect   of   employees   employed   by  Junagadh   District   Panchayat   was   examined   and  decided   by   the   Court   in   the   decision   dated  27.7.2006   in   Special   Civil   Application   No.11744  of 2006 whereby the High Court confirmed similar  award   and   the   directions   passed   by   the   learned  Industrial   Tribunal   in   case   of   District  Development   Officer,   Junagadh.   Learned   advocate  for   the   claimants   placed   reliance   on   the   order  dated   28.1.2015   passed   by   the   District  Development   Officer,   Bhavnagar   and   he   submitted  that the District Panchayat, Bhavnagar passed the  said order to comply the decision by the learned  Industrial Tribunal in Reference Case No.31/1998,  wherein   the   learned   Industrial   Tribunal  considered   similar   case   and   similar   issues   /  contentions in respect of an employee in category  of   Sweeper   was   engaged   on   part­time   basis.   He  submitted   that   an   employee   who   was   engaged   as  part­time Sweeper  by the  office  of the  District  Panchayat had raised industrial dispute which was  registered as Reference Case No.31/1998, wherein  11 HC-NIC Page 11 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER the   learned   Industrial   Tribunal   passed   similar  award   on   20.3.2006   which   was   challenged   by   the  District   Development   Officer   in   Special   Civil  Application No.11744 of 2006.   He submitted that  this   Court   confirmed   the   award   vide   judgment  dated   27.7.2006   in   Special   Civil   Application  No.11744 of 2006.  He further submitted that the  said   judgment   dated   27.7.2006   was   carried   in  appeal, i.e. Letters Patent Appeal No.847 of 2013  and the said appeal was rejected on 2.7.2013 and  subsequently,   Hon'ble   Apex   Court   dismissed  Special Leave Petition against the said decision  by   the   learned   single   Judge   and   the   Division  Bench.   He submitted  that  after  dismissal   of the  Special Leave Petition, District Panchayat passed  order dated 28.1.2015 and regularized the service  of   the   part­time   Peon.   On   strength   of   the   said  order,   learned   advocate   for   the   respondents  submitted  that  the  issues  similar  to  the issues  raised   in   present   petitions   have   already   been  decided   and   that,   therefore,   present   award  challenged   in   present   petitions   may   not   be  12 HC-NIC Page 12 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER disturbed.

5. I   have   considered   rival   submissions   by  learned   advocates   for   the   contesting   parties.   I  have   also   considered   impugned   award   passed   by  learned Tribunal and other material available on  record.

6. The   factum   of   the   employment   of   the  claimants   with   the   Municipal   Corporation   is   not  in dispute. The date of joining and total length  of  service  of the  claimants  with  the petitioner  Municipal Corporation is also not in dispute. The  fact that the dispute and claim was raised after  completion   of   3   years   of   service   with   the  Corporation, is not in dispute.

7. The   fact   that   the   claimants   were  initially paid fixed salary at Rs.200/­ and then  they were paid fixed salary at Rs.600/­ which was  subsequently increased to fixed salary @ Rs.900/­  and that initially claimants were engaged on part  time   basis   for   4   years   and   thereafter   working  13 HC-NIC Page 13 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER hours   were   increased   to   6   hours   is   also   not   in  dispute.   Of   course,   the   claimants   have   alleged  that though they were engaged on part time basis  and  it was  claimed  that  their  appointments   were  for 4 hours work / day, they were actually made  to work full time and they were performing duties  and   function   on   par   with   regular   and   full   time  employees.   The   said   allegations   is   disputed   by  the Municipal Corporation.

8. However,   the   fact   about   their  employment,   total   length   of   service   are   not   in  dispute. Similarly, the fact that at the relevant  time they worked for 6 hours per day and that the  corporation paid fixed salary at Rs.900/­ is also  not in dispute.

9. The dispute was raised by the claimants  somewhere   in   2001,   2002   and   2004   after   they  completed   service   of   3   years.   This   translated  into   the   fact   that   the   claimants   have   been   in  service   with   Corporation   since   1998,   1999   and  2001   and   that   by   now,   the   claimants   have  14 HC-NIC Page 14 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER completed service of more than 15 years with the  Corporation.

10. The   fact   that   the   claimants   are   in  service   is   also   not   in   dispute.   The   said   fact  establishes   that   the   work,   the   duties   and   the  function   which   the   claimants   perform   are   of  permanent and perennial nature and their service  are required by the Corporation, is also not in  dispute. 

10.1 The learned Tribunal has derived finding  of fact from the evidence (oral and documentary)  placed   on   record   by   the   Municipal   Corporation.  From the material which the Corporation placed on  record,   it   emerged   before   the   learned   Tribunal  that   the   Government   has   sanctioned,   for   the  Municipal   Corporation,   set   up   with   22   permanent  post   in   the   category   of   Peon.   Learned   Tribunal  also found that the Corporation had engaged only  17  peons  on permanent  basis  whereas  5 permanent  and   sanctioned   posts   were   vacant,   however,   the  service  of the  claimants   who were  working  since  15 HC-NIC Page 15 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER long   time   are   not   being   regularized   despite  vacancies in permanent post on sanctioned set­up. 10.2 It   is   also   pertinent   to   note   from   the  material   available   on   record   that   the   learned  Tribunal   also   found   that   on   22.8.2005   the  Corporation   has   passed   Resolution   No.27   whereby  it   was   resolved   that   the   persons   who   worked   as  Peon   on   part   time   basis   with   the   primary  education   committee,   should   be   regularized   as  full time permanent employees on the vacancies in  respect of permanent post of Peon and that their  services should be regularized after taking into  account their inter­se seniority. 

10.3 Thus,   learned   Tribunal   found   that   there  were   vacancies   in   respect   of   permanent   post   on  sanctioned establishment and that the Corporation  had   already   passed   Resolution   to   regularize  service   of   the   claimants   on   the   basis   of   their  inter­se   seniority   however,   the   said   decision/  resolution was not being implemented.  16 HC-NIC Page 16 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER 10.4 The learned Tribunal also found that the  Municipal   Education   Committee   had   already  recommended   the   case   of   claimants,   however,   the  said recommendation was not taken into account.  10.5 Learned Tribunal also found that at the  time  when  the claimants  were  engaged,  they  were  engaged after undergoing process of interview and  their   age/   birth   date,   Education   qualification,  Physical   fitness   (on   the   basis   of   medical  certificate),   Character   certificate   etc.   were  examined   and   thereafter   the   claimants   were  appointed. 

10.6 Learned  Tribunal   also   took   into  account  the   duty   list   under   which   duties   and   functions  were assigned to the claimants. 

11. From   above   mentioned   details   and   from  the   discussion   in   the   award,   it   comes   out   that  the   learned   Tribunal   has   taken   into   account  relevant   aspect   before   passing   impugned  direction.   In   this   background,   when   the  17 HC-NIC Page 17 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER observation   by   the   Court   in   the   decision   dated  27.7.2006 in Special Civil Application No. 11744  of   2006,   which,   according   to   the   details  mentioned in the order dated 28.1.2015 passed by  District   Development   Officer,   Bhavnagar,   have  been confirmed by the Division Bench and Special  Leave   Petition   against   the   said   decision   is  rejected,   are   taken   into   account   and   when   the  provision   under   Item   Serial   No.10   in   Part­I   of  Schedule of Industrial Disputes Act is taken into  account, then it becomes clear that the findings  and  direction  passed  by learned  Tribunal   do not  deserve to be disposed. 

11.1 While   passing   impugned   direction,  learned   Tribunal   has   taken   into   account   all  relevant   factors   and   have   given   effect   to   the  direction from the date of award and not as per  the   terms   of   reference,   according   to   which  benefit of permanency and regular pay­scale etc.,  was   claimed   from   the   date   when   the   claimants  completed service of 3 years. 

18 HC-NIC Page 18 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER 11.2 Instead,   learned   Tribunal   has   in   just  and   reasonable   manner   granted   the   benefits   from  the date of the award. 

11.3 Even the payment of difference of wages  is   directed   to   be   paid   from   the   date   of   award  though the effect is granted from 22.8.2005.  11.4 From   the   above   mentioned   discussion,   it  has  emerged  that  the  learned  Tribunal  took  into  account 22.8.2005 as cut­off date because it was  on   the   said   date   (i.e.   22.8.2005)   that   the  Committee   had   passed   Resolution   to   regularize  services   of   the   claimants   in   light   of   the   fact  that sufficient number of vacancies in respect of  permanent   post   on   sanctioned   establishment   were  available at the relevant time.

11.5 In   this   factual   background,   the  direction   passed   by   learned   Tribunal   does   not  warrant any interference.

12. Any   material   which   would   convince   this  19 HC-NIC Page 19 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER Court to hold that the final direction passed by  learned   Tribunal   are   arbitrary   or   perverse   or  unjust   and   contrary   to   the   material   on   record  before the learned Tribunal, is neither available  on   record   nor   brought   to   the   notice   of   this  Court.   The   petitioners   have   failed   to   establish  that   the   direction   by   the   learned   Tribunal   are  unjust or arbitrary or unreasonable. 

13. It is pertinent to note that it was not  the  case  even of  the Corporation   before  learned  Tribunal and it is not its case even before this  Court   also   that   the   claimants   do   not   possess  requisite   qualification   as   prescribed   by  applicable Rules for the post in question and/ or  at the time of their initial entry the claimants  were  age  barred.  Such  facts  are neither  pleaded  nor   proved   before   learned   Tribunal   and   such  contention is not raised at the time of hearing  of the petition. 

13.1 Thus,   when   it   is   not   the   case   of   the  Corporation   that   the   claimants   do   not   possess  20 HC-NIC Page 20 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER requisite and prescribed qualification and/ or at  the   time   of   entry   in   the   service   they   were   age  barred   and/   or   the   claimants   do   not   fulfill  prescribed   eligibility   criteria,   then   in   such  circumstances   there   is   no   justification   to  interfere   with   and   to   disturb   the   finding   of  facts   and   final   conclusion   and   direction   by  learned   Tribunal,   more   particularly   when   the  claimants have regularly and continuously worked  with the Corporation for about 15 years and also  in light of the fact that the practice adopted by  the Corporation amounts to unfair labour practice  inasmuch   as   despite   vacancy   on   permanent   set­up  the   Corporation   illegally   and   arbitrarily  continued  the  claimants  on daily  wage  and part­ time basis.

For  abovementioned   reasons   and   in   light  of   the   foregoing   discussions   the   petitions   fail  and   deserve   to   be   rejected   and   accordingly  rejected. Rule is discharged. 

21 HC-NIC Page 21 of 22 Created On Mon Aug 21 02:29:52 IST 2017 C/SCA/7460/2010 ORDER (K.M.THAKER, J.) Bharat 22 HC-NIC Page 22 of 22 Created On Mon Aug 21 02:29:52 IST 2017