Legal Document View

Unlock Advanced Research with PRISMAI

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 20, Cited by 0]

Gujarat High Court

District Development Officer & vs Kishor Kantibhai Joshi on 9 March, 2017

Author: Sonia Gokani

Bench: Sonia Gokani

                  C/SCA/27368/2007                                            JUDGMENT




                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                       SPECIAL CIVIL APPLICATION NO. 27368 of 2007



         FOR APPROVAL AND SIGNATURE:



         HONOURABLE MS JUSTICE SONIA GOKANI

         ==========================================================

         1     Whether Reporters of Local Papers may be allowed
               to see the judgment ?

         2     To be referred to the Reporter or not ?

         3     Whether their Lordships wish to see the fair copy of
               the judgment ?

         4     Whether this case involves a substantial question of
               law as to the interpretation of the Constitution of
               India or any order made thereunder ?

         ==========================================================
                    DISTRICT DEVELOPMENT OFFICER & 1....Petitioner(s)
                                       Versus
                         KISHOR KANTIBHAI JOSHI....Respondent(s)
         ==========================================================
         Appearance:
         MR HS MUNSHAW, ADVOCATE for the Petitioner(s) No. 1 - 2
         MR MUKESH H RATHOD, ADVOCATE for the Respondent(s) No. 1
         ==========================================================

             CORAM: HONOURABLE MS JUSTICE SONIA GOKANI

                                     Date : 09/03/2017


                                     ORAL JUDGMENT

1. District   Development   Officer,   Rajkot   District  Page 1 of 28 HC-NIC Page 1 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT Panchayat   and   Medical   Officer,   Primary   Health  Centre, Sultanpur, are aggrieved by the order of  the Labour Court in Reference( LCR) of 1996 where  the Court has directed the reinstatement of the  workman   without   backwages   and   continuity   of  service. 

2. The facts in detail are as follows:­ 2.1 The petitioner was allotted vehicle NO.GUD­ 4988 being Jeep for the purpose of Primary Health  Centre,   Sultanpur.   It   was   for   petitioner   No.2  that the vehicle was allotted. In absence of any  regular   or   permanent   driver,   the   respondent   was  provided   work   depending   on   the   availability   of  funds in the month of January, 1991, this was, of  course,   without   giving   any   public   advertisement  on ad hoc and daily wage basis. 

3. The   respondent   continued   to   work   from   the   year  January, 1991 to 26.4.1994. The vehicle was then  required to be shifted to Primary Health Centre,  village;   Khirasara;   Taluka:   Lodhika;   District: 

Rajkot, because of the order passed by the Chief  District   Health   Officer,   Rajkot   on   25.4.1994. 



                                   Page 2 of 28

HC-NIC                           Page 2 of 28     Created On Mon Aug 14 07:57:56 IST 2017
           C/SCA/27368/2007                                          JUDGMENT



         Thus,   the   vehicle   of     Sultanpur   Primary   Health 

         Centre   had   been     shifted   to   Khirasara   Primary 

Health   Centre.   The   respondent   was   not   continued  with   effect   from   26.4.1994,   due   to   non­ availability   of   the   work   and   funds.   Aggrieved  respondent preferred Reference LCR No.21 of 1996  before the Labour Court, Rajkot. The statement of  claim   was   given   and   the   defence   statement   was  permitted to come on record and eventually after  recordance   of   evidence,   the   Court   passed   the  award   in   the   month   of   May,   2007,   directing  reinstatement in the service with continuity but  without   backwages.   Thus,   this   petition   is  preferred with the following prayers:­ "7. The   petitioner   therefore,   most  respectfully prays that this Honourable Court:
(A) Be   pleased   to   admit   the   present   Special  Civil Application;
(B) Be   pleased   to   allow   this   Special   Civil  Application   by   way   of   issuing   appropriate  writ,   mandamus   or   directions   quashing   ands  etting aside the impugned award passed in the  month   of   May   2007   by   the   Labour   Court   in  Reference   (LCR)   No.21   of   1996   annexed   and  Annexure­B by way of holding that the same is  illegal, unjust, arbitrary and contrary to the  facts   and   evidences   on   record   as   well   as  provisions of the Industrial Disputes Act 1947  in in the interest of justice. 
(C) Pending   the   admission,   final   hearing   and  disposal   of   the   present   Special   Civil  Application   be   pleased   to   stay   the  Page 3 of 28 HC-NIC Page 3 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT implementation, execution and operation of the  impugned award in the month of May 2007 by the  Hon'ble   Court   at   Rajkot   in   Reference   (LCR)  No.21   of   1996   annexed   as   Annexure­B   in   the  interest of justice. 
(D) Be pleased to pass such other and further  orders   as   the   nature   of   the   case   may   be  required   and   the   Honourable   Court   may   deem  thought fit to pass such order."

4. This   Court   has   heard   learned   advocate  Mr.H.S.Munshaw   for   the   petitioners   and   learned  advocate   Mr.   Mukesh   Rathod   for   the   respondent  employee. On carefully examining the award of the  Labour Court, they both have fervently made rival  submissions. On having given a careful thought to  the material on record and the rival submissions,  it can be noticed that the defence raised on the  part   of   the   petitioners   is   that   the   respondent  was  working  purely  on  ad  hoc  basis  as  a  daily­ wager and he was not a regular driver. There was  no  ad   hoc  arrangement   while   taking   him   in  service.   He   had   been   called   sometimes   for   two  days in a month and sometimes for 19 days. It was  also   their   say   that   the   petitioners   do   not  require   the   services   of   the   respondent,   as  vehicle has already been transferred from Lodhika  Page 4 of 28 HC-NIC Page 4 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT taluka   to   Khirsara   taluka.   After   framing   the  issues,   the   Court   concluded   on   the   strength   of  the   evidence,   as   well   as   oral   submissions   that  the   respondent   worked   from   13.1.1991   to  26.4.1994.

5. Respondent agreed that his work was of permanent  nature.   He   denied   suggestions   that   he   had   not  worked for 240 days in a particular year. It is  also   noted   that   those,   who   are   junior   to   the  petitioner had been called. No notice pay, no pay  of   one   month,   notice   in   lieu   of   pay   nor  retrenchment compensation has been provided. The  vehicle   was   transferred   at   a   short   notice   and,  therefore,   it   is   the   stand   of   the   petitioners  that the respondent cannot continue, as there is  no   work   where   he   can   discharge   the   duty.   Thus,  the act of retrenchment has been declared illegal  without continuity of service and the backwages.  He   has   been   directed   to   be   reinstated   in   the  month of May, 2007.

6. Learned advocate Mr. Munshaw for the petitioners  Page 5 of 28 HC-NIC Page 5 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT has pressed into service the decision rendered by  the   Apex   Court   in   the   case   of  Bhavnagar   Municipal   Corporation   vs.   Salimbhai   Umarbhai   Mansuri,   (2013)   14   SCC   456  which  would   be  considered   at   later   stage,   whereas   learned  advocate   for   the   respondent   has   sought   to   rely  upon the decision of the Apex Court in the case  of  Harjinder Singh vs. Punjab State Warehousing   Corporation,(2010) 3 SCC 558.

 

7. (a) Having heard both the sides and on throughly  regarding   pleadings   of   the   parties,   at   the  outset,   it   is   to   be   noted   that   in   the   instant  case,  it  is  not  in  dispute  that  the  service  of  the   respondent   had   been   terminated   without  complying with the provisions of section 25F of  the I.D.Act.

7(b) According the petitioner Corporation workman  had   not   completed   240   days   in   the   preceding   12  months   and   hence,   would   not   be   entitled   to   any  protection for not being in 'continuous service'  as per section 25B of the Act. It is the say of  the respondent that he has already completed 240  Page 6 of 28 HC-NIC Page 6 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT days and, moreover, his juniors were retired and  also called latter in  complete contravention the  provisions. 

Section   25G   of   the   I.D.   Act   provides   for  procedure for retrenchment, where any workman in  industrial establishment is to be retrenched. If  he   belongs   to   a   particular   category   in   the  establishment   and   in   absence   of   the   agreement  with the employer and the workman, the employer  shall   ordinarily   retrench   the   workman,   who   was  last   person   to   be   employed   in   that   category  unless the employer retrenches any other workman. 

As   per   the   definition   of   'retrenchment'  under section 2(oo)(bb), non­renewal of contract  would not be included in such definition.

8.   The   burden   of   proof   of   having   worked   for   240  days   is   on   the   workman.   Once   he   deposes   before  the   Court,   the   burden   would   shift   upon   the  employer.   In   the   case   of  Director   of   Fisheries   Terminal   Division   vs.   Bhikhubhai   Meghajibhai   Chavda,  (2010) 1 SC 47, the Apex Court has held  thus:­ Page 7 of 28 HC-NIC Page 7 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT "13) The next contention of the learned counsel  for   the   appellant   is   that   the  respondent   had  not   worked   for   240   days   during   the   preceding  twelve   months   on   daily   wages   and,   therefore,  the   respondent   cannot   claim   any   protection  under   the   provisions   of  Industrial   Disputes  Act,   1947.   The   case   of   the   respondent   before  the labour court was that as he had completed  working for more than 240 days in a year, the  purported order of retrenchment is illegal, as  conditions   precedent   as   contained   in  Section  25F  of the Industrial Disputes Act, 1947 were  not complied with. 

14) Section 25B of the Act defines "continuous  service".   In   terms   of   Sub   section   (2)   of  Section 25B  that if a workman during a period  of   twelve   calendar   months   preceding   the   date  with   reference   to   which   calculation   is   to   be  made,   has   actually   worked   under   the   employer  240 days within a period of one year, he will  be   deemed   to   be   in   continuous   service.   The  respondent claims he was employed in the year  1985   as   a   watchman   and   his   services   were  retrenched   in   the   year   1991   and   during   the  period between 1985 to 1991, he had worked for  a period of more than 240 days. The burden of  proof is on the respondent to show that he had  worked for 240 days in preceding twelve months  prior to his alleged retrenchment. The law on  this issue appears to be now well settled. This  court   in   the   case   of  R.M.   Yellatty   vs.  Assistant   Executive   Engineer  [(2006)   1   SCC  106], has observed : 

"However,   applying   general   principles   and   on  reading the aforesaid judgments, we find that  this Court, has repeatedly taken the view that  the burden of proof is on the claimant to show  that   he   had   worked   for   240   days   in   a   given  year. This burden is discharged only upon the  workman   stepping   up   in   the   witness   box.   This  burden is discharged upon the workman adducing  cogent evidence, both oral and documentary. In  cases of termination of services of daily­waged  earners, there will be no letter of appointment  Page 8 of 28 HC-NIC Page 8 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT of termination. There will also be no receipt  of  proof  of  payment.  Thus  in  most  cases,   the  workman (the claimant) can only call upon the  employer   to   produce   before   the   Court   the  nominal muster roll for the given period, the  letter of appointment of termination, if any,  the   wage   register,   the   attendance   register,  etc.   Drawing   of   adverse   inference   ultimately  would   depend   thereafter   on   the   facts   of   each  case." 

15) Applying   the   principles   laid   down   in   the  above case by this court, the evidence produced  by the appellants has not been consistent. The  appellants   claim   that   the   respondent   did   not  work for 240 days. The respondent was a workman  hired on a daily wage basis. So it is obvious,  as   this   court   pointed   out   in   the   above   case  that he would have difficulty in having access  to   all   the   official   documents,   muster   rolls  etc.   in   connection   with   his   service.   He   has  come forward and deposed, so in our opinion the  burden   of   proof   shifts   to   the  employer/appellants   to   prove   that   he   did   not  complete 240 days of service in the requisite  period to constitute continuous service. It is  the   contention   of   the   appellant   that   the  services of the respondent were terminated in  1988.   The   witness   produced   by   the   appellant  stated   that   the   respondent   stopped   coming   to  work   from   10   February,   1988.   The   documentary  evidence   produced   by   the   appellant   is  contradictory to this fact as it shows that the  respondent   was   working   during   February,   1989  also.   It   has   also   been   observed   by   the   High  Court that the muster roll for 1986­87 was not  completely   produced.   The   appellants   have  inexplicably   failed   to   produce   the   complete  records   and   muster   rolls   from   1985   to   1991,  inspite of the direction issued by the labour  court  to  produce  the  same.  In  fact  there   has  been practically no challenge to the deposition  of the respondent during cross­examination. In  this regard, it would be pertinent to mention  the   observation   of   three   judge   bench   of   this  court   in   the   case   of   Municipal   Corporation,  Page 9 of 28 HC-NIC Page 9 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT Faridabad   Vs.   Siri   Niwas   [(2004)   8   SCC   195],  where it is observed:

"A Court of Law even in a case where provisions  of the  Indian Evidence Act  apply, may presume  or   may   not   presume   that   if   a   party   despite  possession   of   the   best   evidence   had   not  produced the same, it would have gone against  this contentions. The matter, however, would be  different   where   despite   direction   by   a   court  the evidence is withheld." "

9. The   decision   rendered   by   the   Apex   Court   in   the  case   of  Harjinder   Singh  (supra)   requires  consideration   where   the   Court   was  considering  section 25G of the I.D. Act. It was the stand of  the   Corporation   before   the   Apex   Court   that   the  employee concerned did not work continuously for  the period of 240 days. Relying on the principle  of 'last come first go', the Apex Court held that  rule of 'last come first go' could be deviated by  the employer only in case of loss of efficiency  or loss of confidence, and the burden is on the  employer to establish such deviation. Otherwise,  in   the   ordinary   course,   such   deviation   is  impermissible. Before the Apex Court there was no  specific period for specific job. Nature of job  was   casual   and,   as   such,   the   workman   was   held  entitled   to   reinstatement,   although   he   had   not  Page 10 of 28 HC-NIC Page 10 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT completed   240   days.   Relevant   paragraphs   of   the  decision are reproduced hereunder:­ "13. It is true that in the writ petition filed  by   it,   the   corporation   did   plead   that   the  dispute   raised   by   the   appellant   was   not   an  industrial   dispute   because   he   had   not   worked  continuously   for   a   period   of   240   days,   the  learned   Single   Judge   rightly   refused   to  entertain the same because no such argument was  advanced before him and also because that plea  is falsified by the averments contained in para  2   of   the   reply   filed   on   behalf   of   the  corporation   to   the   statement   of   claim   wherein  it was admitted that the appellant was engaged  as work charge Motor Mate for construction work  on 5.3.1986 and he worked in that capacity and  also   as   Work   Munshi   from   3.10.1986   and,   as  mentioned   above,   even   after   expiry   of   the  period   of   three   months'   specified   in   order  dated 5.2.1987, the appellant continued to work  till 5.7.1988 when first notice of retrenchment  was   issued   by   the   Managing   Director   of   the  corporation. Therefore, it was not open for the  corporation   to   contend   that   the   appellant   had  not completed 240 days service. Moreover, it is  settled   law   that   for   attracting   the  applicability   of  Section   25­G  of   the   Act,   the  workman   is   not   required   to   prove   that   he   had  worked for a period of 240 days during twelve  calendar   months   preceding   the   termination   of  his   service   and   it   is   sufficient   for   him   to  plead   and   prove   that   while   effecting  retrenchment, the employer violated the rule of  `last   come   first   go'   without   any   tangible  reason.  In Central Bank of India v. S. Satyam  (1996)   5   SCC   419,   this   Court   considered   an  analogous issue in the context of  Section 25­H  of   the   Act,   which   casts   a   duty   upon   the  employer   to   give   an   opportunity   to   the  retrenched workmen to offer themselves for re­ employment   on   a   preferential   basis.   It   was  argued on behalf of the bank that an offer of  re­employment  envisaged in  Section  25­H  should  be confined only to that category of retrenched  Page 11 of 28 HC-NIC Page 11 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT workmen who are covered by  Section    25­F       and a  restricted meaning should be given to the term  `retrenchment'   as   defined   in  Section   2(oo).  While   rejecting   the   argument,   this   Court  analysed Section 25­F, 25­H, Rules 77 and 78 of  the  Industrial Disputes (Central)  Rules,  1957,  referred to Section 25­G and held: 

"Section   25­H  then   provides   for   re­employment  of   retrenched   workmen.   It   says   that   when   the  employer   proposes   to   take   into   his   employ   any  persons,   he   shall,   in   such   manner   as   may   be  prescribed,   give   an   opportunity   to   the  retrenched workmen who are citizens of India to  offer   themselves   for   re­employment,   and   such  retrenched workmen who offer themselves for re­ employment   shall   have   preference   over   other  persons. 
Rules   77   and   78   of   the   Industrial   Disputes  (Central) Rules, 1957 prescribe the mode of re­ employment.   Rule   77   requires   maintenance   of  seniority   list   of   all   workmen   in   a   particular  category   from   which   retrenchment   is  contemplated arranged according to seniority of  their service in that category and publication  of   that   list.   Rule   78   prescribes   the   mode   of  re­employment   of   retrenched   workmen.   The  requirement   in   Rule   78   is   of   notice   in   the  manner   prescribed   to   every   one   of   all   the  retrenched   workmen   eligible   to   be   considered  for re­employment. Shri Pai contends that Rules  77 and 78 are unworkable unless the application  of  Section 25­H  is confined to the category of  retrenched   workmen   to   whom  Section   25­F  applies.   We   are   unable   to   accept   this  contention. 
Rule   77   requires   the   employer   to   maintain   a  seniority   list   of   workmen   in   that   particular  category   from   which   retrenchment   is  contemplated   arranged   according   to   the  seniority   of   their   service.   The   category   of  workmen   to   whom  Section   25­F  applies   is  distinct from those to whom it is inapplicable.  There is no practical difficulty in maintenance  of seniority list of workmen with reference to  Page 12 of 28 HC-NIC Page 12 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT the   particular   category   to   which   they   belong.  Rule   77,   therefore,   does   not   present   any  difficulty.   Rule   78   speaks   of   retrenched  workmen   eligible   to   be   considered   for   filling  the   vacancies   and   here   also   the   distinction  based   on   the   category   of   workmen   can   be  maintained   because   those   falling   in   the  category   of  Section   25­F  are   entitled   to   be  placed   higher   than   those   who   do   not   fall   in  that category. It is no doubt true that persons  who have been retrenched after a longer period  of   service   which   places   them   higher   in   the  seniority   list   are   entitled   to   be   considered  for   re­employment   earlier   than   those   placed  lower because of a lesser period of service. In  this   manner   a   workman   falling   in   the   lower  category   because   of   not   being   covered   by  Section   25­F  can   claim   consideration   for   re­ employment   only   if   an   eligible   workman   above  him   in   the   seniority   list   is   not   available.  Application of   Section   25­H  to   the   other   retrenched   workmen  not covered by Section 25­ F does not, in any  manner, prejudice those covered by Section 25­F  because   the   question   of   consideration   of   any  retrenched workman not covered by  Section 25­F  would   arise   only,   if   and   when,   no   retrenched  workman   covered   by  Section   25­F  is   available  for re­employment. There is, thus, no reason to  curtail   the   ordinary   meaning   of   "retrenched  workmen"   in  Section   25­H  because   of   Rules   77  and   78,   even   assuming   the   rules   framed   under  the Act could have that effect. 
The plain language of  Section 25­H  speaks only  of   re­employment   of   "retrenched   workmen".   The  ordinary meaning  of  the expression  "retrenched  workmen"   must   relate   to   the   wide   meaning   of  `retrenchment' given in  Section  2(oo).  Section  25­F  also   uses   the   word   `retrenchment'   but  qualifies   it   by   use   of   the   further   words  "workman ... who has been in continuous service  for not less than one year". Thus, Section 25­F  does   not   restrict   the   meaning   of   retrenchment  but   qualifies   the   category   of   retrenched  workmen   covered   therein   by   use   of   the   further  Page 13 of 28 HC-NIC Page 13 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT words   "workman   ...   who   has   been   in   continuous  service   for   not   less   than   one   year".   It   is  clear   that  Section   25­F  applies   to   the  retrenchment   of   a   workman   who   has   been   in  continuous   service   for   not   less   than   one   year  and   not   to   any   workman   who   has   been   in  continuous service for less than one year; and  it does not restrict or curtail the meaning of  retrenchment   merely   because   the   provision  therein is made only for the retrenchment of a  workman who has been in continuous service for  not less than one year. Chapter V­A deals with  all   retrenchments   while  Section   25­F  is  confined   only   to   the   mode   of   retrenchment   of  workmen in continuous service for not less than  one year. Section 25­G prescribes the principle  for   retrenchment   and   applies   ordinarily   the  principle of "last come first go" which is not  confined   only   to   workmen   who   have   been   in  continuous service for not less than one year,  covered by Section 25­F." (emphasis supplied)  xxx   xxx   xxx xxx   xxx   xxx
23. Of late, there has been a visible shift in  the   courts   approach   in   dealing   with   the   cases  involving  the  interpretation  of  social welfare  legislations.   The   attractive   mantras   of  globalization   and   liberalisation   are   fast  becoming   the   raison   d'etre   of   the   judicial  process and an impression has been created that  the   constitutional   courts   are   no   longer  sympathetic   towards   the   plight   of   industrial  and   unorganized   workers.   In   large   number   of  cases   like   the   present  one,   relief   has   been  denied to the employees falling in the category  of   workmen,   who   are   illegally   retrenched   from  service by creating by­lanes and side­lanes in  the   jurisprudence   developed   by   this   Court   in  three   decades.   The   stock   plea   raised   by   the  public   employer   in   such   cases   is   that   the  initial   employment/engagement   of   the   workman­ employee   was   contrary   to   some   or   the   other  statute   or   that   reinstatement   of   the   workman  will   put   unbearable   burden   on   the   financial  Page 14 of 28 HC-NIC Page 14 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT health   of   the   establishment.   The   courts   have  readily   accepted   such   plea   unmindful   of   the  accountability of the wrong doer and indirectly  punished   the   tiny   beneficiary   of   the   wrong  ignoring the fact that he may have continued in  the   employment   for   years   together   and   that  micro   wages   earned   by   him   may   be   the   only  source   of   his   livelihood.   It   need   no   emphasis  that if a man is deprived of his livelihood, he  is   deprived   of   all   his   fundamental   and  constitutional   rights   and   for   him   the   goal   of  social and economic justice, equality of status  and   of   opportunity,   the   freedoms   enshrined   in  the   Constitution   remain   illusory.   Therefore,  the   approach   of   the   courts   must   be   compatible  with the constitutional philosophy of which the  Directive Principles of State Policy constitute  an integral part and justice due to the workman  should   not   be   denied   by   entertaining   the  specious   and   untenable   grounds   put   forward   by  the employer ­ public or private."

10. In such view of the matter, the Court is of  the opinion that this is a case for entitlement  of   the   compensation.   For   so   doing,   this   Court  relies   upon   the   decisions   of   the   Apex   Court   in  the case of Vice­Chancellor, Lucknow University,   Lucknow, Uttar Pradesh vs. Akhilesh Kumar Khare   and   another,  2016(1)   SCC   521  and  Workmen   Rastriya   Colliery   Mazdoor   Sangh   vs.   Bharat   Coking   Coal   Limited   and   another,  (2016)9   SCC 

431. 

11. (a)   In   the   case   of  Bhavnagar   Municipal   Page 15 of 28 HC-NIC Page 15 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT Corporation   vs.   Salimbhai   Umarbhai   Mansuri,  (2013) 14 SCC 456, admittedly the appointment of  the respondent was on contractual basis. The Apex  Court, while examining the scope of section 2(oo) (bb) as well as sections  25F25G and 25H of the  Industrial   Disputes   Act,   has   held   that   the  respondent was bound by the terms and conditions  of the office order. The termination of service  of   the   respondent   was   on   expiry   of   the   period  mentioned in the appointment. In that view of the  matter, when he had not worked continuously for  240   days,   how   could   he   claim   the   benefit   of  sections   25F,   25G   and   25H   of   the   Industrial  Disputes   Act.   The   Court   held   that   the   only  question  was whether  the termination of service  of   the   respondent   on   the   basis   of   contract   of  appointment   would   amount   to   retrenchment   within  the meaning of section 25H of the Act. The Court  held thus:­ "8.Clause 1, 2 and 7 to 10 of the office order  dated   19.05.1988   are   relevant,   which   are  extracted herein below for ready reference:

"1.   With   reference   to   your   application   dated  _____,   a   meeting   was   held   with   us/the  Commissioner   and   subject   to   the   following  conditions  arrived  at  with mutual  consent you  are being appointed as a Daily Wager Helper in  Page 16 of 28 HC-NIC Page 16 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT the   Water   Works   Department   from   1.5.88   to  30.6.88   at   a   daily   minimum   wages   of   Rs.12/13  and dearness allowance, daily special allowance  of   Rs.10/20   aggregating   to   Rs.22/33   in  accordance   with   the   Approval   No.Commi  O/CPO/M.No.204   dated   16.5.88   and   upon  completion   of   last   duty   on   30.6.88,   your  service shall stand automatically terminated.
2.   Since   a   definite   date   of   termination   of  your service has been specified, the Municipal  Corporation shall not be liable and you shall  not be entitled to any notice, wages in lieu of  notice, retrenchment compensation etc. x x x x x x x x x x x x x x x x
7. If you are transferred as provided in Clause  6 above and if you fail to perform you duty at  the appointed time then it would tantamount to  that   you   are   not   willing   to   work   and   this  contract of service shall automatically come to  an   end   and   as   such   your   services   shall   stand  terminated.
8. As   per   the   aforesaid   para   no.1   of   the  Office Order you are being appointed as a daily  wager   from   2.5.88   to   30.6.66   subject   to   the  condition that you have to come for work as and  when   required   by   the   Municipal   Corporation,  that is, if the Municipal Corporation does not  require   your   service   during   the   aforesaid  period,  then  the  Municipal Corporation is not  bound to give you the work and you shall not be  entitled to demand work for that day, of which  you may take a special note.
9. Upon   termination   of   your   contract   on   the  date specified above, you are not entitled to  claim any right of seniority for the period for  which   you   work   nor   are   you   entitled   to   be  reinstated or make such a claim on account of  the new appointment of daily wagers.
10.   The   Corporation   shall   be   entitled   to  relieve you before the prescribed period if it  no longer requires your services."

9. The above order was signed by the respondent  Page 17 of 28 HC-NIC Page 17 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT and,   therefore,   bound   by   the   terms   and  conditions   of   the   office   order.   The   question  is,   termination   of   the   service   of   the  respondent   on   the   expiry   of   the   periods  mentioned   above   would   amount   to   retrenchment?  Facts   in   this   case   clearly   show,   so   found   by  the Labour Court itself that the respondent had  not worked continuously for 240 days in an year  to claim the benefit of Section 25F, G and H of  the ID Act. Therefore, the only question to be  considered is whether termination of service of  the respondent on the basis of the contract of  appointment would amount   to   retrenchment   within   the   meaning   of  Section   25H   of   the   ID   Act   so   as   to   claim  reinstatement. 

10.   A   reference   to   Section   2(oo)   and   (bb)   of  the Act would be apposite.

"2 Definitions:­ (oo)   "retrenchment"   means   the   termination   by  the   employer   of   the   service   of   a   workman   for  any   reason   whatsoever,   otherwise   than   as   a  punishment   inflicted   by   way   of   disciplinary  action, but does not include­ xxx xxx xxx xxx xxx xxx (bb) termination of the service of the workman as a result of the non­renewal of the contract  of   employment   between   the   employer   and   the  workman   concerned   on   its   expiry   or   of   such  contract   being   terminated   under   a   stipulation  in that behalf contained therein."

Section 2(bb) says that if the termination  of   the   service   of   workman   is   as   a   result   of  non­renewal   of   the   contract   between   the  employer and the workman on its expiry of such  contract   being   terminated   under   a   stipulation  in   that   behalf   contained   therein,   the   same  would not constitute retrenchment.

11.   Facts   would   clearly   indicate   that   the  respondent's   service   was   terminated   on   the  expiry   of   the   fixed   periods   mentioned   in   the  office orders and that he had worked only for  Page 18 of 28 HC-NIC Page 18 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT 54   days.   The   mere   fact   that   the   appointment  orders used the expression "daily wages"  does  not make the appointment "Casual" because it is  the substance that matters, not the form. The  contract   of   appointment   consciously   entered  into   by   the   employer   and   the   employee   would,  over   and   above   the   specific   terms   of   the  written   agreement,   indicates   that   the  employment   is   short­lived   and   the   same   is  liable   to   termination,   on   the   fixed   period  mentioned in the contract of appointment.

12.   The   learned   counsel   appearing   for   the  respondent   submitted   that   the   respondent   is  entitled to the benefit of Section 25G & H, the  same are extracted herein below:

"25G.   Procedure   for   retrenchment.­   Where   any  workman in an industrial establishment, who is  a citizen of India, is to be retrenched and he  belongs to a particular category of workmen in  that   establishment,   in   the   absence   of   any  agreement between the employer and the workman  in this  behalf,  the  employer  shall  ordinarily  retrench the workman who was the last person to  be   employed   in   that   category,   unless   for  reasons to be recorded the employer retrenches  any other workman.
25H. Re­employment of retrenched workmen.­ Where   any   workmen   are   retrenched,   and   the  employer proposes to take into his employ any  persons,   he   shall,   in   such   manner   as   may   be  prescribed,   give   an   opportunity   to   the  retrenched workmen who are citizens of India to  offer   themselves   for   re­   employment   and   such  retrenched   workman]   who   offer   themselves   for  re­ employment shall have preference over other  persons."

13.   Section   25H   will   apply   only   if   the  respondent   establishes   that   there   had   been  retrenchment. Facts will clearly indicate that there was  no  retrenchment  under  Section  2(oo)  read   with   Section   2(bb)   of   the   ID   Act.  Consequently, Section 25H would not apply to 10  the facts of the case. Similar is the factual  and legal situation in the civil appeal arising  out of SLP(C) No.5387 of 2012 as well."



                                 Page 19 of 28

HC-NIC                         Page 19 of 28     Created On Mon Aug 14 07:57:56 IST 2017
           C/SCA/27368/2007                                           JUDGMENT




11(b) It is clear from the decision of Bhavnagar   Municipal   Corporation  (supra)   that   the  appointment   was   based   on   a   written   contract,   a  ready   reference   of   which   has   been   made   by   the  Apex   Court   in   its   judgment   and   the   person   had  worked   only   for   a   period   stipulated   in   the  contract.   It   was   a   case   of   non­renewal   of  contract as was specified at the time of initial  appointment   and   the   case   fell   clearly   under  section 2(oo)(bb) of the said Act. 

12. In the instant case, as could be noticed and  as   also   has   been   held   by   the   Labour   Court,  initial appointment of the respondent was without  issuance   of   public   advertisement   and,   there   has  been no written contract nor has any appointment  order been issued. He has, however,  continued to  work all four years on the post of driver. He was  terminated   without   following   procedure   and  another   person   who   was   also   engaged   was   his  junior,   who   continued   to   serve,   violating   the  principle of 'last come fist go'.





                                Page 20 of 28

HC-NIC                        Page 20 of 28     Created On Mon Aug 14 07:57:56 IST 2017
           C/SCA/27368/2007                                            JUDGMENT



12(a)   According   to   the   petitioner   Corporation,  the   car   itself   has   been   sent   to   the   Primary  Health   Centre,   Khirasra   taluka   and,   hence,   the  services   of   the   respondent   had   been   terminated.  Nothing came on record as to why the respondent  could not have been sent along with car and what  was the need to retain his junior. In absence of  any   material   indicating   either   notice,   pay   in  lieu   of   notice,   retrenchment   compensation   etc.,  the continuation of job of another person without  proving   lack   of   efficiency   and   loss   of  confidence,   deviation   of   principle   of   the   'last  come   first   go'   is   impermissible.   And,   burden  being on the employer to justify such deviation,  the Labour Court rightly has held that the same  has not been discharged.

13.   The   Court   does   not   find   any   error   in   the  findings of the Labour Court, and therefore, no  interference   is   needed   in   the   petition   under  Articles 226 and 227.

13(a)  The   Constitution   Bench   of   the   Apex   Court  considered the scope of High Courts' jurisdiction  Page 21 of 28 HC-NIC Page 21 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT to issue a writ of certiorari involving challenge  to the orders passed by the authorities entrusted  with the  quasi  judicial    functions. In the case  of   'SYED   YAKOOB   Vs.   K.S.     RADHAKRISHNAN     &   OTHERS',  AIR   1964   SC   477,   the   Apex   Court   held  that   the   writ   of   certiorari   can   be   issued   for  correcting an error of jurisdiction committed by  the   inferior   Court   or   the   Tribunal,   where,   the  orders   are   passed   by   the   Tribunal   or   the   Court  without jurisdiction or is in excess of it or as  a result of failure to exercise the jurisdiction  vested in it.   A writ can be issued by the High  Court   in   exercise   of   jurisdiction   conferred   on  it, when the decision taken by the inferior Court  or tribunal   is legal or impermissible. Wherein,  the Apex Court observed and held thus:

"The   question   about   the   limits   of   the  jurisdiction of High Courts in issuing a  writ   of   certiorari   under  Art.   226  has  been   frequently  considered  by  this   Court  and   the   true   legal   position   in   that   behalf is no longer in doubt. A writ of  certiorari   can   be   issued   for   correcting  errors   of   jurisdiction   committed   by  inferior   courts   or   tribunals;   these   are  cases where orders are passed by inferior   courts or tribunals without jurisdiction,  or   in   excess   of   it,   or   as   a   result   of   failure to exercise jurisdictions. A writ  can similarly be issued where in exercise   Page 22 of 28 HC-NIC Page 22 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT of   jurisdiction   conferred   on   it,   the   Court   or   Tribunal   acts   illegally   or  improperly, as for instance, it decides a   question without giving an opportunity to  be   heard   to   the   party   affected   by   the   order, or where the procedure adopted in  dealing   with   the   dispute   is   opposed   to  principles   of  natural  justice.  There  is,  however,   no   doubt   that   the   jurisdiction  to   issue   a   writ   of   certiorari   is   a  supervisory   jurisdiction   and   the   Court  exercising   it   is   not   entitled   to   act   as  an   appellate   Court.   This   limitation  necessarily   means   that   findings   of   fact  reached by the inferior Court or Tribunal   as   a   result   of   the   appreciation   of  evidence cannot be reopened or questioned  in   writ   proceedings.   An   error   of   law  which   is   apparent   on   the   face   of   the   record   can   be   corrected   by   a   writ,   but   not   an   error   of   fact,   however   grave   it   may appear to be. In regard to a finding   of fact recorded by the Tribunal, a writ  of   certiorari   can   be   issued   if   it   is   shown that in recording the said finding,   the  Tribunal  had,  erroneously  refused   to  admit   admissible   and   material   evidence,  or had, erroneously admitted inadmissible  evidence   which   has   influenced   the  impugned finding. Similarly, if a finding  of   fact   is   based   on   no   evidence,   that   would   be   regarded   as   an   error   of   law   which   can   be   corrected   by   a   writ   of  certiorari. In dealing with this category  of cases, however, we must always bear in  mind   that   a   finding   of   fact   recorded   by  the   Tribunal   cannot   be   challenged   in   proceedings   for   a   writ   of   certiorari   on  the ground that the relevant and material   evidence adduced before the Tribunal was'   insufficient or inadequate to sustain the  impugned   finding.   The   adequacy   or  sufficiency   of   evidence   led   on   a   point  and   the   inference   of   fact   to   be   drawn   from   the   said   finding   are   within   the  exclusive   jurisdiction   of   the   Tribunal,  Page 23 of 28 HC-NIC Page 23 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT and   the   said   points   cannot   be   agitated  before   a   writ   court.   It   is   within   these  limits that the jurisdiction conferred on  the High Courts under Art. 226 to issue a  writ   of   certiorari   can   be   legitimately  exercised   (vide  Hari   Vishnu   Kamath   v.  Syed Ahmed Ishaque(1), Nagendra Nath Bora  v. The Commissioner of Hills Division and  Appeals,  Assam(2), and  Kaushalya  Devi v.  Bachittar Singh(3). It is, of course, not  easy   to   define   or   adequately   describe  what an error of law apparent on the face   of  the   record   means.   What   can   be  corrected by a writ has to be an error of   law; but it must be such an error of law   as   can   be   regarded   as   one   which   is  apparent on the face of the record. Where  it   is   manliest   or   clear   that   the  conclusion of law recorded by an inferior   Court or Tribunal is based on an obvious  mis­interpretation   of   the   relevant  statutory   provision,   or   sometimes   in  ignorance   of   it,   or   may   be,   even   in  disregard of it, or is expressly rounded  on   reasons   which   are   wrong   in   law,   the   said   conclusion   can   be   corrected   by   a  writ   of   certiorari.   In   all   these   cases,  the   impugned   conclusion   should   be   so   plainly   inconsistent   with   the   relevant  statutory provision that no difficulty is  experienced by the High Court in holding  that the said error of law is apparent on   the   face   of   the   record.   It   may   also   be  that in some cases. the impugned error of  law may not be obvious or patent on the  face of the record as such and the Court   may need an argument to discover the said  error;   but   there   can   be   no   doubt   that   what   can   be   corrected   by   a   writ   of  certiorari   is   an   error   of   law   and   the   said error must, on the whole, be of such   a   character   as   would   satisfy   the   test   that   it   is   an   error   of   law   apparent   on  the   face   of   the   record.   If   a   statutory   provision   is   reasonably   capable   of   two  constructions   and   one   construction   has  Page 24 of 28 HC-NIC Page 24 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT been   adopted   by   the   inferior   Court   or  Tribunal,   its   conclusion   may   not  necessarily   or   always   be   open   to  correction   by   a   writ   of   certiorari.   In  our   opinion,   it   is   neither   possible   nor  desirable to attempt either to define or  to   describe   adequately   all   cases   of  errors   which   can   be   appropriately  described   as   errors   of   law   apparent   on  the face of the record. Whether or not an   impugned error is an error of law and an  error   of   law   which   is   apparent   on   the   face   of   the   record,   must   always   depend  upon the facts and circumstances of each  case and upon the nature and scope of the   legal provision which is alleged to have  been misconstrued or contravened."

14. Thus,   even   without   interfering   with   the  factual   findings,   so   far   as   the   conclusion  arrived at by the Labour Court is concerned, some  indulgence   is   found   desirable.   The   Labour   Court  has   directed   reinstatement   to   the   original   post  without   continuity   of   service   and   without  backwages.   As   discussed   above,   when   the  respondent   was   appointed   it   was   without   any  public advertisement and he continued to work for  about   nearly   4   years.   Much   time   has   flown   from  the date of retrenchment which, even though held  illegal, had come in the year 1994. The period of  nearly   22   years     has   lapsed.   In   such  circumstances,   relying   on   the   decisions   to   be  Page 25 of 28 HC-NIC Page 25 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT discussed   hereinafter,   lump   sum   compensation  requires to be ordered. 

14(a) In   the   case   of  Workmen   Rastriya   Colliery   Mazdoor   Sangh  (supra),   out   of   20  original   workmen   employed   between   1987­1989,   14  left   in   fray   i.e.   their   services   were   not  regularised.  The   Tribunal   passed   the   order   of  directing   regularisation   of   services   were   of  workmen   but   without   backwages.   The   same   was  modified   by   the   High   Court   on   18.5.2004   and  consequent to which, the management was required  in case it intended to employ regular workman, to  give   preference   to   workmen   in   question   by  relaxing conditions as to age and eligibility. As  27 years had elapsed since their engagement and  most   of   them   were   on   verge   of   retirement   left  without   any   relief/remedy,   payment   of  compensation   of   Rs.   2   lakhs   each   in   full   and  final   settlement   of   their   claims,   dues   and  outstanding were directed by the Apex Court.  14(b) In the case of Vice­Chancellor, Lucknow   University,   Lucknow,   Uttar   Pradesh  (supra)   the  Page 26 of 28 HC-NIC Page 26 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT respondents  originally   were   engaged   as   daily  wager   in   Accounts   Section   by   Finance   Officer,  University   of   Lucknow.   They   were   paid   from  different contingency funds. In order to prevent  the process of engaging daily wager on 3.8.1990,  it  was  noted  that  they  would   not  be  allowed  to  continue   after   31.12.1990,   until   prior   written  approval was accorded by the Vice­Chancellor and  the respondents were terminated with effect from  1.1.1991. Thus, total period of their service was  for 1 ½ years. The Apex Court considered the fact  that   requirement   of   section   17B   of   the   I.D.Act  had   not   been   complied   with,   the   University   was  directed   to   pay   the   respondent   Rs.4   lakhs   each  within four months from the date of judgment, on  the   ground   that   on   account   of   pendency   of  litigation for more than two decades and as some  of the respondents were   overaged   and thus had  lost opportunity to get the job elsewhere.

15. The   judgment   and   order   of   the  Labour   Court  passed in May, 2007 in  Reference (LCR) No.21 of  1996 in wake of forgoing discussion on facts and  Page 27 of 28 HC-NIC Page 27 of 28 Created On Mon Aug 14 07:57:56 IST 2017 C/SCA/27368/2007 JUDGMENT law,   is   confirmed   with   the   modification   of  operative   order.   On   the   ground   of   pendency   of  litigation   for   nearly   two   decades   as   the   the  respondent   has   lost   opportunity   to   get   the   job  elsewhere, the respondent be given a compensation  of   Rs.3   lakhs.   The   procedure   to   avail   such  compensation   as   directed   shall   be   completed  within eight (8) weeks from the date of receipt  of the copy of this order. 

Petition   stands   dismissed.   Rule   is  discharged.

(MS SONIA GOKANI, J.) SUDHIR Page 28 of 28 HC-NIC Page 28 of 28 Created On Mon Aug 14 07:57:56 IST 2017