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[Cites 17, Cited by 0]

Gujarat High Court

Deputy Executive Engineer Sardar ... vs Mahadevbhai Dhanjibhai Khokhar & on 9 January, 2017

Author: K.M.Thaker

Bench: K.M.Thaker

                   C/SCA/20/2013                                            JUDGMENT



                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                        SPECIAL CIVIL APPLICATION NO. 20 of 2013
                                             With
                      SPECIAL CIVIL APPLICATION NO. 17955 of 2014



         FOR APPROVAL AND SIGNATURE:


         HONOURABLE MR.JUSTICE K.M.THAKER                                              Sd/-
         ==========================================================

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

         2     To be referred to the Reporter or not ?                                   NO

         3     Whether their Lordships wish to see the fair copy of                      NO
               the judgment ?

         4     Whether this case involves a substantial question of                      NO
               law as to the interpretation of the Constitution of
               India or any order made thereunder ?

         ==========================================================
             DEPUTY EXECUTIVE ENGINEER SARDAR SAROVAR NARMADA
                                 NIGAM....Petitioner(s)
                                        Versus
               MAHADEVBHAI DHANJIBHAI KHOKHAR & 1....Respondent(s)
         ==========================================================
         Appearance:
         BHARGAV KARIA & ASSO, ADVOCATE for the Petitioner(s) No. 1
         MR NILESH M SHAH, ADVOCATE for the Respondent(s) No. 1
         MR PARITOSH CALLA, ADVOCATE for the Respondent(s) No. 2
         RULE SERVED for the Respondent(s) No. 2
         ==========================================================

             CORAM: HONOURABLE MR.JUSTICE K.M.THAKER

                                     Date : 09/01/2017




                                          Page 1 of 32

HC-NIC                                  Page 1 of 32     Created On Sat Aug 12 02:40:30 IST 2017
                 C/SCA/20/2013                                            JUDGMENT



                                COMMON ORAL JUDGMENT

1. Heard Mr.Karia, learned advocate for the  petitioner and Mr.Shah, learned advocate for the  respondent. 

2. The   petition   being   Special   Civil  Application   No.20   of   2013   is   filed   by   Sardar  Sarovar   Narmada   Nigam   Limited   (hereinafter  referred   to   as   'the   Nigam')   through   its   Deputy  Executive   Engineer   against   the   award   dated  29.9.2011  passed   by the learned  Labour  Court  at  Surendranagar   in   Complaint   No.2   of   2003   whereby  the  learned  Labour   Court  has directed  the Nigam  to reinstate original complainant on his original  post   with   50%   backwages.   Whereas   the   petition  being Special Civil Application No.17955 of 2014  is   filed   by   union,   on   behalf   of   the   concerned  workman, against the award dated 23.9.2011 passed  by  the learned   Labour  Court  at Surendranagar  in  Reference (LCD) No.6 of 2003 whereby the learned  Labour Court declined the demand of the union on  behalf   of   the   concerned   workman   for  Page 2 of 32 HC-NIC Page 2 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT regularization   and   status   of   permanent   workman  for the concerned claimant. 

2.1 The contesting parties in both the cases  are  common.  Besides  this,  the subject  matter  of  the   dispute   is   interconnected.     In   view   of   the  said   fact,   learned   advocates   for   the   contesting  parties have made common submissions with regard  to   their   respective   cases,   for   both   the  petitions.   Since   the   common   issues   and  contentions  are involved  in both  the  cases,  the  captioned   two   petitions   are   decided   by   this  common judgment. 

3. The  original   claimant   had   raised   demand  that in view of the long, regular and continuous  service   his   service   should   be   regularized   and  status   of   permanent   workman   should   be   conferred  to   him.   The   employer   did   not   accept   the   said  demand. Therefore, the dispute arose between the  parties.   The   union   named   Surendranagar   Jilla  Mazdoor Sangh sponsored the dispute. Appropriate  Government,   vide   order   of   reference   dated  Page 3 of 32 HC-NIC Page 3 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT 26.3.2003,   referred   the   said   demand   for  adjudication   to   the   learned   Labour   Court   at  Surendranagar.   The   said   dispute   culminated   into  Reference (LCD) No.6 of 2003. 

3.1 It has also emerged from the record that  while   the   said   dispute   was   pending   before  Conciliation   Officer   and   while   the   dispute   was  pending   for   adjudication   before   the   learned  Labour   Court,   the   Nigam   discontinued   service   of  the original claimant, i.e. Mr.M.D. Khokhar with  effect   from   25.7.2003,   i.e.   after   the   order   of  reference   was   passed   by   appropriate   Government  [which   culminated   into   Reference   (LCD)   No.6   of  2003].   Differently   put,   during   pendency   of   the  dispute  related  to  the demand  of  Mr.Khokhar  for  regularization in service, his service came to be  discontinued   by   Nigam   on   25.7.2003   and   that,  therefore,   the   claimant   felt   aggrieved   and   he  invoked   provision   under   Sections   33   and   33A   of  the   Industrial   Disputes   Act,   1947   (hereinafter  referred   to   as   'the   Act')   and   filed   complaint  Page 4 of 32 HC-NIC Page 4 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT before   the   learned   Labour   Court   on   the   ground  that his service is illegally terminated and that  the Nigam has committed breach of Section 33 of  the Act. The said complaint came to be registered  as Complaint No.2 of 2003 in Reference (LCD) No.6  of 2003.  

3.2 The   claimant   filed   his   statement   of  claim in above mentioned Reference (LCD) No.6 of  2003   with   the   allegation   that   he   is   in   service  with   the   Nigam   since   last   11   years   and   he   is  working   as   Driver   and   that   though   he   is  continuously  employed  by the  Nigam  for 11 years  as Driver and despite the fact that he has been  working regularly and continuously for such long  period of 11 years, his service is not considered  permanent and the status of permanent workman is  not   conferred   to   him   and   he   is   deprived   of  benefit   of   permanent   workman.   With   such  allegation, he demanded regularization in service  and   status   of   permanent   workman   as   well   as   the  benefit   on   par   with   the   permanent   workman.   The  Page 5 of 32 HC-NIC Page 5 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT claimant, through the union, contended that there  is vacancy on permanent post of sanctioned set up  and   that,   therefore,   there   is   justification   in  his demand, more particularly because he has been  working  continuously   since  last 11  years  and in  each year, he has worked for more than 240 days. 3.3 The   Nigam   opposed   the   said   demand   on  various   grounds.   The   Nigam   contended   that   the  claimant   is   not   appointed   after   following  procedure for selection and recruitment and that  the claimant is engaged intermittently and on ad  hoc and daily wage basis as and when need arises  and  the allegation   that the  claimant   worked  for  more than 240 days is not correct. The Nigam also  contended   that   since   the   claimant   is   not  appointed   after   regular   selection,   he   is   not  entitled for regularization in service and/or for  salary   and benefits  on par  with other  permanent  employees. 

3.4 In   the   said   reference   proceedings,   the  contesting   parties,   i.e.   concerned   claimant  Page 6 of 32 HC-NIC Page 6 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT (through   his   union)   and   the   Nigam   led   their  respective oral as well as document evidence.   3.5 After considering the evidence available  on   record   and   after   considering   rival  submissions, the learned Labour Court passed the  award dated 23.9.2011 and rejected the claimant's  demand   for   regularization   in   service,   for   the  reasons recorded in the award. 

3.6 As   mentioned   earlier,   while   the   said  Reference   No.6   of   2003   was   pending   before   the  learned Labour Court, the Nigam discontinued the  service   of   the   claimant   on   25.7.2003   and   that,  therefore,   the   claimant   filed   Complaint   No.2   of  2003 on the allegation that his service came to  be   discontinued   during   pendency   of   the   dispute  (Reference No.6 of 2003), wherein his demand for  regularization   in   service   was   pending   for  consideration.   According   to   the   claimant,   hi  service   could   not   have   been   terminated   without  complying the condition prescribed by Section 33  of   the   Act.   However,   without   taking   any  Page 7 of 32 HC-NIC Page 7 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT permission, the Nigam terminated his service and  committed   breach   of   section   33.   With   such  allegation, the claimant filed said complaint.  3.7 The complaint was opposed by the Nigam.  The Nigam contended that the claimant was engaged  as   temporary   employee   on  ad   hoc  and   daily   wage  basis and since there was no need to continue to  engage him his service was discontinued and that,  therefore, the provisions under section 33 of the  Act   are   not   attracted   and   applicable   and   the  complaint   filed   by   invoking   provisions   under  section 33 is not maintainable. 

3.8 The  learned  Labour   Court   considered  the  complaint   and   the   evidence   available   on   record  and having regard to the provisions under section  33   of   the   act,   the   learned   Labour   Court   partly  allowed the complaint and while setting aside the  action   of   the   Nigam,   directed   the   Nigam   to  reinstate the claimant with 50% backwages. 

4. It   is   pertinent   to   note   that   the  Page 8 of 32 HC-NIC Page 8 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT claimant  has  not filed  any  petition  against  the  learned   Labour   Court's   decision   denying   50%  backwages.   However,   the   claimant   has   filed  captioned   petition   (Special   Civil   Application  No.17955 of 2014) against the award passed by the  learned  Labour  Court  in Reference  (LCD)  No.6  of  2003 whereby his demand for regularization is not  granted.

5. During   hearing   of   the   captioned  petitions,   Mr.Karia,   learned   advocate   for   the  Nigam   assailed   the   award   dated   29.9.2011   in  Complaint No.2 of 2003 and he submitted that the  learned   Labour   Court   has   committed   error   in  directing the Nigam to reinstate the claimant and  to pay him 50% backwages. He submitted that the  learned   Labour   Court   failed   to   appreciate   that  the claimant was working with the Nigam on daily  wage   basis   and   that,   therefore,   the   allegations  and contentions with regard to breach of section  33   could   not   have   been   sustained.   Without  prejudice   to   the   said   contention,   Mr.Karia,  Page 9 of 32 HC-NIC Page 9 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT learned   advocate   for   the   Nigam   submitted   that  even if the findings by the learned Labour Court  and final conclusion by the learned Labour Court  as   well   as   the   direction   to   reinstate   the  claimant are held to be justified, then also the  direction to pay 50% is unjustified and the said  direction may be set aside.

5.1 Mr.Shah   opposed   the   submissions   and  claimed   that   since   the   claimant's   service   was  terminated   when   dispute   for   regularization   of  service was pending and the Nigam failed to seek  approval   under   Section   33   of   the   Act,   it  committed   breach   of   said   section   and   therefore,  there   is   no   error   in   the   award   directing  reinstatement   with   50%   backwages,   more  particularly   because   breach   of   Section   33   is  proved.

6. Mr.Shah,   with   regard   to   the   petition  filed   by   the   claimant   relied   on   the   documents  placed on record before the learned Labour Court,  more particularly communication dated 1.4.1999 by  Page 10 of 32 HC-NIC Page 10 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT the   Executive   Engineer   to   General   Manager  (Training)   of   the   Nigam   whereby   the   Executive  Engineer seems to have recommended regularization  of   claimant's   service.   Mr.Shah   also   placed  reliance   on   the   document   dated   29.7.1999   by  Executive   Engineer,   Surendranagar   to  Superintending   Engineer   whereby   also   similar  recommendation is reiterated. On strength of the  said documents, learned advocate Mr.Shah for the  claimant   submitted   that   though   there   is   vacancy  on permanent post of sanctioned set up, the Nigam  rejected   the   claimant's   request   for  regularization in service and the learned Labour  Court   failed   to   appreciate   the   fact   that   the  vacancy   on   permanent   post   on   sanctioned   set   up  exists   and   that,   therefore,   the   demand   for  regularization   should   be   granted,   more  particularly   in   view   of   the   fact   that   the  claimant   is   working   continuously   and   regularly  with the Nigam since last 11 years as Driver and  that in each year he has worked for more than 240  days   and   that,   therefore,   there   is   complete  Page 11 of 32 HC-NIC Page 11 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT justification   in   the   demand   for   regularization.  Mr.Shah,   learned   advocate   for   the   claimant  submitted that the learned Labour Court failed to  appreciate   the   said   aspect   as   well   as   the  evidence   on   record   and   arbitrarily   rejected  claimant's demand and that, therefore, the award  deserves to be set aside and the Nigam should be  directed   to   regularize   service   of   the   claimant  from the date when the claimant completed service  of more than 240 days and that the Nigam should  also pay arrears for interregnum. 

6.1 Mr.Karia,   learned   advocate   opposed   the  petition   and   the   demand.     He   emphasized   that  appointment   itself   is   defective   and   irregular  therefore such demand cannot be entertained.   He  also submitted that there are no vacancies and no  sanction   for   such   post   /   appointment   on   the  approved set up and that merely on ground of long  service   such   relief   cannot   be   granted.   He  submitted   that   there   is   no   error   in   the   award  denying   relief   in   form   of   regularization   of  Page 12 of 32 HC-NIC Page 12 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT service.

7. I   have   considered   rival   submissions   by  learned   advocates   for   the   contesting   parties.   I  have   also   considered   the   material   available   on  record of the captioned two petitions and I have  also  considered  the  award  passed  by the  learned  Labour Court in Reference (LCD) No.6 of 2003 as  well as Complaint No.2 of 2003. 

7.1 For   sake   of   convenience,   it   would   be  appropriate   to   first   deal   with   the   Nigam's  grievance   and   objection   against   the   award   dated  29.9.2011 in Complaint No.2 of 2003. 

8. So   far   as   the   said   award   is   concerned,  it   is   relevant   to   take   into   account,   at   the  outset, certain undisputed facts.

8.1 It   is   not   in   dispute   that   the   claimant  had,   through   is   union,   raised   demand   for  regularization   in   service   and   appropriate  Government referred the said demand / dispute for  adjudication   to   the   learned   Labour   Court   vide  Page 13 of 32 HC-NIC Page 13 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT order of reference dated 26.3.2003.   8.2 Thus,   the   dispute/   demand   for  regularization   in   service   of   the   claimant   was  initially   pending   before   Conciliation   Officer.  Thereafter   it   was   pending   before   the   learned  Labour Court since 26.3.2003. 

8.3 While   the   said   dispute   /   demand   for  regularization of claimant's service was pending  before   the   learned   Labour   Court,   the   claimant's  service came to be discontinued by the Nigam on  25.7.2003.

8.4 The Nigam has not disputed the fact that  the Nigam terminated service of the claimant. The  Nigam   has   also   not   disputed   the   fact   that   the  claimant's   service   came   to   be   discontinued   with  effect   from   25.7.2003.   The   Nigam   could   not  dispute   the   fact   that   on   the   date   when   the  claimant's service came to be terminated (i.e. on  27.7.2003),   the   dispute   /   demand   for  regularization of claimant's service was pending  Page 14 of 32 HC-NIC Page 14 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT before   the   learned   Labour   Court   (since  26.3.2003).

8.5 Above   mentioned   undisputed   facts   bring  in   picture   the   provision   under   section   33.   The  said section 33 reads thus: 

"33. Conditions of service, etc., to remain unchanged  under   certain   circumstances   during   pendency   of  proceedings (1) During the pendency of any conciliation proceeding before b [an arbitrator or] a conciliation officer or a  Board   or   of   any   proceeding   before   a   Labour   Court   or  Tribunal   or   National   Tribunal   in   respect   of   an  industrial dispute, no employer shall, ­
(a) in regard to any matter connected with the dispute,  alter,   to   the   prejudice   of   the   workmen   concerned   in  such dispute, the conditions of service applicable to  them   immediately   before   the   commencement   of   such  proceeding; or
(b)   for   any   misconduct   connected   with   the   dispute,  discharge or punish, whether by dismissal or otherwise,  any   workman   concerned   in   such   dispute,   save   with   the  express permission in writing of the authority before  which the proceeding is pending.
(2)   During   the   pendency   of   any   such   proceeding   in  respect of an industrial dispute, the employer may, in  accordance   with   the   standing   orders   applicable   to   a  workman concerned in such dispute, b [or, where there  are   no   such   standing   orders,   in   accordance   with   the  terms   of   the   contract,   whether   express   or   implied,  between him and the workman],
(a) alter, in regard to any matter not connected with  the   dispute,   the   conditions   of   service   applicable   to  that   workman   immediately   before   the   commencement   of  such proceeding; or
(b) for any misconduct not connected with the dispute,  discharge or punish, whether by dismissal or otherwise,  that workman;

Provided   that   no   such   workman   shall   be   discharged   or  dismissed, unless he has been paid wages for one month  and an application has been made by the employer to the  authority   before   which   the   proceeding   is   pending   for  Page 15 of 32 HC-NIC Page 15 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT approval of the action taken by the employer. ... ... ..."

8.6 According   to   the   said   provision,   if  service of an employee is sought to be terminated  or   if   conditions   of   service   of   an   employee   are  sought   to   be   altered   during   pendency   of   the  dispute,   then   depending   on   the   fact   that   the  termination   of   the   service   or   alteration   in  service   conditions   are   connected   with   pending  dispute or not, the employer would be obliged to  seek   permission   or   approval   from   Conciliation  Officer   or   the   Court   where   the   dispute   is  pending. In the event, the termination of service  or   alteration   in   service   conditions   is   effected  without   complying   with   the   said   requirement   of  seeking  approval   or permission,  as  the case  may  be, then breach of section 33 would occur which  would   create   right   in   favour   of   the   affected  employee  to file  complaint  under  section   33A of  the Act.  



         8.7         In this context, it would be appropriate 


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to   refer   to   the   observations   by   Hon'ble   Apex  Court in the case of  The Bhavnagar Municipality   vs.   Alibhai   Karimbhai   &   Others   [AIR   1977   SC   1229],   wherein   Hon'ble   Apex   Court   has   observed  that: 

"14. The character of the temporary employment of the  respondents being a direct issue before the Tribunal is  that  condition   of   employment,   however   insecure,   must  subsist during the pendency of the dispute before the  Tribunal   and   cannot   be   altered   to   their   prejudice   by  putting an end to that temporary condition. This could  have been done only with the express permission of the  Tribunal. It goes without saying that the respondents  were   directly   concerned   in   the   pending   industrial  dispute.   No   one   can   also   deny   that   snapping   of   the  temporary employment of the respondents is not to their  prejudice. All the five features adverted to above are  present   in   the   instant   case.   To   permit   rupture   in  employment, in this case, without the prior sanction of  the Tribunal will be to set at naught the avowed object  of Section 33 which is principally directed to preserve  the   status   quo   under   specified   circumstances   in   the  interest   of   industrial  peace   during   the   adjudication.  We   are,   therefore,   clearly   of   opinion   that   the  appellant has contravened the provisions of Section 33  (1) (a) of the Act and the complaint under Section 33A,  at   the   instance   of   the   respondents,   is   maintainable. 

The submission of Mr. Parekh to the contrary cannot be  accepted."  (Emphasis supplied) 8.8 In   view   of   the   undisputed   fact   that   at  the   relevant   time,   the   dispute   /   demand   for  regularization   of   the   claimant's   service   was  pending,   the   Nigam   could   not   have   terminated  service   of   the   claimant   without   complying  conditions under section 33 of the Act.  




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                 C/SCA/20/2013                                         JUDGMENT




         8.9        Since   the   Nigam   undisputedly   terminated 

claimant's   service   without   complying   condition  and   requirement   prescribed   by   section   33,   the  Nigam's   action   is   illegal   and   in   violation   of  section 33 of the Act.  

8.10 That   is   precisely   the   final   conclusion  which the learned Labour Court has reached to and  recorded   in   the   award   dated   29.9.2011   in  Complaint No.2  of 2003. 

8.11 The finding of fact and final conclusion  recorded   by   the   learned   Labour   Court   are   in  consonance   with   section   33   of   the   Act   and  supported  by  the decision  by Hon'ble   Apex Court  in   case   of  Bhavnagar   Municipality   (supra).  Therefore,   the   said   findings   of   fact   and   final  conclusion by the learned Labour Court cannot be  faulted and they do not warrant any interference. 

9. In this background, the only issue which  would survive for consideration is with regard to  the final direction by the learned Labour Court. 


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         9.1          Having   reached   to   the   conclusion   that 

the   claimant's   service   came   to   be   terminated  illegally   and   in   breach   of   statutory   provision,  the   learned   Labour   Court   directed   the   Nigam   to  reinstate the claimant.  

10. In this context, in the decision in the  case of  Deepali Gundu Surwase vs. Kranti Junior   Adhyapak Mahavidyalaya (D.ED.) (2013) 10 SCC 324   wherein Hon'ble Apex Court has observed that:

"38.1   In   cases   of   wrongful   termination   of   service,  reinstatement with continuity of service and back wages  is the normal rule. 
38.2  The  aforesaid  rule  is   subject  to   the  rider  that  while   deciding   the   issue   of   back   wages,   the  adjudicating   authority   or   the   Court   may   take   into  consideration   the   length   of   service   of   the  employee/workman,   the   nature   of   misconduct,   if   any,  found   proved   against   the   employee/workman,   the  financial condition of the employer and similar other  factors. 
38.3 Ordinarily, an employee or workman whose services  are   terminated   and   who   is   desirous   of   getting   back  wages is required to either plead or at least make a  statement   before   the   adjudicating   authority   or   the  Court of first instance that he/she was not gainfully  employed   or   was   employed   on   lesser   wages.   If   the  employer   wants   to   avoid   payment   of   full   back   wages,  then it has to plead and also lead cogent evidence to  prove that the employee/workman was gainfully employed  and   was   getting   wages   equal   to   the   wages   he/she   was  drawing prior to the termination of service. This is so  because it is settled law that the burden of proof of  the existence of a particular fact lies on the person  who makes a positive averments about its existence. It  is always easier to prove a positive fact than to prove  a   negative   fact.   Therefore,   once   the   employee   shows  that he was not employed, the onus lies on the employer  Page 19 of 32 HC-NIC Page 19 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT to specifically plead and prove that the employee was  gainfully   employed   and   was   getting   the   same   or  substantially similar emoluments. 
38.4   The   cases   in   which   the   Labour   Court/Industrial  Tribunal   exercises   power   under  Section   11­A  of   the  Industrial   Disputes   Act,   1947   and   finds   that   even  though the enquiry held against the employee/workman is  consistent with the rules of natural justice and / or  certified standing orders, if any, but holds that the  punishment was disproportionate to the misconduct found  proved, then it will have the discretion not to award  full   back   wages.   However,   if   the   Labour  Court/Industrial   Tribunal   finds   that   the   employee   or  workman is not at all guilty of any misconduct or that  the   employer   had   foisted   a   false   charge,   then   there  will   be   ample   justification   for   award   of   full   back  wages. 
38.5 The cases in which the competent Court or Tribunal  finds that the employer has acted in gross violation of  the   statutory   provisions   and/or   the   principles   of  natural   justice   or   is   guilty   of   victimizing   the  employee   or   workman,   then   the   concerned   Court   or  Tribunal will be fully justified in directing payment  of full back wages. In such cases, the superior Courts  should not exercise power under  Article 226  or 136 of  the Constitution and interfere with the award passed by  the   Labour   Court,   etc.,   merely   because   there   is   a  possibility   of   forming   a   different   opinion   on   the  entitlement   of   the   employee/workman   to   get   full   back  wages or the employer's obligation to pay the same. The  Courts must always be kept in view that in the cases of  wrongful   /   illegal   termination   of   service,   the  wrongdoer   is   the   employer   and   sufferer   is   the  employee/workman and there is no justification to give  premium to the employer of his wrongdoings by relieving  him  of  the  burden  to  pay   to  the  employee/workman  his  dues in the form of full back wages. 
38.6   In   a   number   of   cases,   the   superior   Courts   have  interfered with the award of the primary adjudicatory  authority   on   the   premise   that   finalization   of  litigation   has   taken   long   time   ignoring   that   in  majority of cases the parties are not responsible for  such delays. Lack of infrastructure and manpower is the  principal cause for delay in the disposal of cases. For  this   the   litigants   cannot   be   blamed   or   penalised.   It  would   amount   to   grave   injustice   to   an   employee   or  workman if he is denied back wages simply because there  is   long  lapse   of  time  between  the  termination  of   his  service   and   finality   given   to   the   order   of  reinstatement. The Courts should bear in mind that in  most of these cases, the employer is in an advantageous  position   vis­à­vis   the   employee   or   workman.   He   can  avail the services of best legal brain for prolonging  Page 20 of 32 HC-NIC Page 20 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT the   agony   of   the   sufferer,   i.e.,   the   employee   or  workman,   who   can   ill   afford   the   luxury   of   spending  money   on   a   lawyer   with   certain   amount   of   fame.  Therefore, in such cases it would be prudent to adopt  the   course   suggested   in  Hindustan   Tin   Works   Private  Limited v. Employees."

10.1 When   above   quoted   observations   by  Hon'ble   Apex   Court   are   taken   into   account   in  light of the fact that the claimant's service was  terminated   in   violation   of   statutory   provision,  then   it   becomes   clear   that   there   is   no  justification   to   interfere   with   the   order  directing   the   Nigam   to   reinstate   the   claimant.  Such   direction   to   reinstate   the   claimant   is  normal   and   natural   consequence   which   should  follow.   Therefore,   the   said   direction   cannot   be  faulted. 

11. Mr.Karia,   learned   advocate   for   the  Nigam,   in   alternative,   contended   that   the  direction to pay 50% backwages may be set aside. 11.1 Above   quoted   observations   by   Hon'ble  Apex   Court   also   make   it   clear   that   if   specific  case   and   strong   justification   for   exception   is  Page 21 of 32 HC-NIC Page 21 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT not made out by the employer for denying whole or  part   of   the   backwages,   the   said   relief   will  ordinarily not be denied to the claimant.  11.2 In present case, any material to justify  denial   of   50%   backwages,   as   granted   by   the  learned   Labour   Court,   is   not   made   out   by   the  employer, i.e. the Nigam. 

12. Any   case   to   set   aside   the   direction   to  pay   50%   backwages   is   not   made   out,   more  particularly   in   view   of   the   observations   by  Hon'ble   Apex   Court   in   case   of  Deepali   Gundu   Surwase   (supra).   Therefore,   the   Nigam's  submission   to   set   aside   the   direction   granting  50% backwages is hereby rejected.  

13. Now, so far as the award dated 23.9.2011  in Reference (LCD) No.6 of 2003 is concerned, it  is noticed that after considering the document on  which   the   claimant   placed   reliance,   the   learned  Labour   Court   has   recorded   finding   of   fact   that  the  claimant   has not  made out  any justification  Page 22 of 32 HC-NIC Page 22 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT for   direction   to   regularize   his   service   and/or  for status of permanent workman. 

14. So   far   as   the   said   decision   by   the  learned   Labour   Court   is   concerned,   it   is  appropriate to take into account the observations  by Hon'ble Apex Court in case of Secretary, State  of   Karnataka   and   others   vs.   Umadevi   (3)   and   others   [(2006)   4   SCC   1],   wherein   Hon'ble   Apex  Court has observed, inter alia, that:

"41. It is argued that in a country like India where there  is   so   much   poverty   and   unemployment   and   there   is   no  equality   of   bargaining   power,   the   action   of   the   State   in  not  making  the  employees  permanent,  would  be  violative  of  Article   21  of   the   Constitution.   But   the   very   argument  indicates that there are so many waiting for employment and  an equal opportunity for competing for employment and it is  in that context  that the Constitution  as one of its basic  features,   has   included   Articles   14,   16   and   309   so   as   to  ensure that public employment  is given  only in a fair and  equitable manner by giving all those who are qualified, an  opportunity  to  seek   employment.   In  the  guise  of  upholding  rights under Article 21 of the Constitution of India, a set  of   persons   cannot   be   preferred   over   a   vast   majority   of  people   waiting   for   an   opportunity   to   compete   for   State  employment. The acceptance of the argument on behalf of the  respondents   would   really   negate   the   rights   of   the   others  conferred by  Article 21  of the Constitution, assuming that  we are in a position to hold that the right to employment  is also a right coming within the purview of Article 21 of  the   Constitution.   The   argument   that  Article   23  of   the  Constitution   is   breached   because   the   employment   on   daily  wages  amounts   to  forced  labour,   cannot  be  accepted.  After  all,   the   employees   accepted   the   employment   at   their   own  volition   and   with   eyes   open   as   to   the   nature   of   their  employment. The Governments also revised the minimum wages  payable   from   time   to   time   in   the   light   of   all   relevant  circumstances.   It   also   appears   to   us   that   importing   of  these   theories   to   defeat   the   basic   requirement   of   public  employment   would   defeat   the   constitutional   scheme   and   the  constitutional goal of equality. 
42.   The   argument   that   the   right   to   life   protected   by  Article  21  of the Constitution  of India  would  include  the  Page 23 of 32 HC-NIC Page 23 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT right   to   employment   cannot   also   be   accepted   at   this  juncture.   The   law   is   dynamic   and   our   Constitution   is   a  living document.  May be at some future  point  of time, the  right   to   employment   can   also   be   brought   in   under   the  concept of right to life or even included as a fundamental  right.   The   new   statute   is   perhaps   a   beginning.   As   things  now stand, the acceptance of such a plea at the instance of  the   employees   before   us   would   lead   to   the   consequence   of  depriving   a   large   number   of   other   aspirants   of   an  opportunity   to   compete   for   the   post   or   employment.   Their  right   to   employment,   if   it   is   a   part   of   right   to   life,  would stand denuded by the preferring of those who have got  in casually  or those  who have come through the back door.  The obligation cast on the State under Article 39(a) of the  Constitution   of   India   is   to   ensure   that   all   citizens  equally have the right to adequate means of livelihood. It  will   be   more   consistent   with   that   policy   if   the   courts  recognize   that   an   appointment   to   a   post   in   government  service   or   in   the   service   of   its   instrumentalities,   can  only   be   by   way   of   a   proper   selection   in   the   manner  recognized   by   the   relevant   legislation   in   the   context   of  the relevant provisions of the Constitution. In the name of  individualizing   justice,   it   is   also   not   possible   to   shut  our eyes to the constitutional scheme and the right of the  numerous  as against the few who are before the court. The  Directive   Principles   of   State   Policy   have   also   to   be  reconciled  with  the   rights  available  to  the   citizen  under  Part   III   of   the   Constitution   and   the   obligation   of   the  State   to   one   and   all   and   not   to   a   particular   group   of  citizens.   We,   therefore,   overrule   the   argument   based   on  Article 21 of the Constitution. 
43.   Normally,   what   is   sought   for   by   such   temporary  employees  when they approach  the court,  is the issue of a  writ of mandamus  directing  the employer,  the State  or its  instrumentalities,   to   absorb   them   in   permanent   service   or  to   allow   them   to   continue.   In   this   context,   the   question  arises whether a mandamus could be issued in favour of such  persons.   At   this   juncture,   it   will   be   proper   to   refer   to  the decision of the Constitution Bench of this Court in Dr.  Rai Shivendra Bahadur Vs. The Governing Body of the Nalanda  College [(1962) Supp. 2 SCR 144]. That case arose out of a  refusal   to   promote   the   writ   petitioner   therein   as   the  Principal of a college. This Court held that in order that  a   mandamus   may   issue   to   compel   the   authorities   to   do  something,   it   must   be   shown   that   the   statute   imposes   a  legal duty on the authority  and the aggrieved  party had a  legal right under the statute or rule to enforce it. This  classical   position   continues   and   a   mandamus   could   not   be  issued in favour of the employees directing the government  to make them permanent since the employees cannot show that  they   have   an   enforceable   legal   right   to   be   permanently  absorbed  or  that  the  State  has  a  legal  duty   to  make  them  permanent. 
44.   One   aspect   needs   to   be   clarified.   There   may   be   cases  where irregular  appointments  (not illegal appointments)  as  explained   in   S.V.   NARAYANAPPA   (supra),   R.N.   NANJUNDAPPA  (supra),   and   B.N.   NAGARAJAN   (supra),   and   referred   to   in  paragraph   15   above,   of   duly   qualified   persons   in   duly  sanctioned   vacant   posts   might   have   been   made   and   the  Page 24 of 32 HC-NIC Page 24 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT employees have continued to work for ten years or more but  without   the   intervention   of   orders   of   courts   or   of  tribunals.   The   question   of   regularization   of   the   services  of   such   employees   may   have   to   be   considered   on   merits   in  the   light   of   the   principles   settled   by   this   Court   in   the  cases above referred to and in the light of this judgment. 

In that context, the Union of India, the State Governments  and their instrumentalities should take steps to regularize  as   a   one   time   measure,   the   services   of   such   irregularly  appointed,   who   have   worked   for   ten   years   or   more   in   duly  sanctioned posts but not under cover of orders of courts or  of   tribunals   and   should   further   ensure   that   regular  recruitments are undertaken to fill those vacant sanctioned  posts   that   require   to   be   filled   up,   in   cases   where  temporary employees or daily wagers are being now employed.  The   process   must   be   set   in   motion   within   six   months   from  this   date.   We   also   clarify   that   regularization,   if   any  already made, but not subjudice, need not be reopened based  on this judgment, but there should be no further by­passing  of   the   constitutional   requirement   and   regularizing   or  making   permanent,   those   not   duly   appointed   as   per   the  constitutional scheme. 

45.   It   is   also   clarified   that   those   decisions   which   run  counter   to   the   principle   settled   in   this   decision,   or   in  which   directions   running   counter   to   what   we   have   held  herein, will stand denuded of their status as precedents. 

46.   In   cases   relating   to   service   in   the   commercial   taxes  department, the High Court has directed that those engaged  on   daily   wages,   be   paid   wages   equal   to   the   salary   and  allowances that are being paid to the regular employees of  their   cadre   in   government   service,   with   effect   from   the  dates   from   which   they   were   respectively   appointed.   The  objection  taken  was to the direction  for payment  from  the  dates   of   engagement.   We   find   that   the   High   Court   had  clearly   gone   wrong   in   directing   that   these   employees   be  paid   salary   equal   to   the   salary   and   allowances   that   are  being   paid   to   the   regular   employees   of   their   cadre   in  government  service,   with  effect   from  the  dates  from  which  they   were   respectively   engaged   or   appointed.   It   was   not  open to the High Court to impose such an obligation on the  State when the very question  before the High Court  in the  case   was   whether   these   employees   were   entitled   to   have  equal pay for equal work so called and were entitled to any  other benefit.  They had also been engaged in the teeth of  directions   not   to   do   so.   We   are,   therefore,   of   the   view  that, at best, the Division Bench of the High Court should  have directed that wages equal to the salary that are being  paid   to   regular   employees   be   paid   to   these   daily   wage  employees with effect from the date of its judgment. Hence,  that   part   of   the   direction   of   the   Division   Bench   is  modified  and it is directed  that  these  daily  wage  earners  be  paid   wages   equal   to  the  salary  at  the  lowest  grade  of  employees of their cadre in the Commercial Taxes Department  in government service, from the date of the judgment of the  Division   Bench   of   the   High   Court.   Since,   they   are   only  daily   wage   earners,   there   would   be   no   question   of   other  allowances  being  paid to them.  In view of our conclusion,  that Courts are not expected to issue directions for making  such persons  permanent  in service,  we set aside  that part  Page 25 of 32 HC-NIC Page 25 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT of the direction of the High Court directing the Government  to consider their cases for regularization. We also notice  that  the  High   Court   has  not  adverted  to  the   aspect  as  to  whether   it  was  regularization  or  it  was  giving  permanency  that   was   being   directed   by   the   High   Court.   In   such   a  situation, the direction in that regard will stand deleted  and the appeals  filed by the State would stand allowed to  that extent. If sanctioned posts are vacant (they are said  to   be   vacant)   the   State   will   take   immediate   steps   for  filling those posts by a regular process of selection. But  when regular recruitment is undertaken, the respondents in  C.A.   No.   3595­3612   and   those   in   the   Commercial   Taxes  Department similarly situated, will be allowed to compete,  waiving the age restriction imposed for the recruitment and  giving   some   weightage   for   their   having   been   engaged   for  work   in   the   Department   for   a   significant   period   of   time.  That would be the extent of the exercise of power by this  Court  under  Article  142  of the Constitution  to do justice  to them. 

47. Coming to Civil Appeal Nos. 1861­2063 of 2001, in view  of our conclusion  on the questions  referred  to, no relief  can   be   granted,   that   too   to   an   indeterminate   number   of  members   of   the   association.   These   appointments   or  engagements   were   also   made   in   the   teeth   of   directions   of  the   Government   not   to   make   such   appointments   and   it   is  impermissible   to   recognize   such   appointments   made   in   the  teeth   of   directions   issued   by   the   Government   in   that  regard.   We   have   also   held   that   they   are   not   legally  entitled to any such relief. Granting of the relief claimed  would   mean   paying   a   premium   for   defiance   and  insubordination   by   those   concerned   who   engaged   these  persons against the interdict in that behalf. Thus, on the  whole, the appellants in these appeals are found to be not  entitled  to  any  relief.  These  appeals   have,   therefore,  to  be dismissed. 

48. C.A. Nos. 3520­24 of 2002 have also to be allowed since  the decision  of the Zilla  Parishads  to make permanent  the  employees   cannot   be   accepted   as   legal.   Nor   can   the  employees   be   directed   to   be   treated   as   employees   of   the  Government, in the circumstances. The direction of the High  Court is found unsustainable."

15. From the above quoted observations by Hon'ble  Apex Court, it becomes clear that if the initial  appointment   is   irregular   and   in   violation   of  prescribed   procedure   for   selection   and  recruitment,   then   merely   because   the   person   has  worked   for   more   number   of   years,   right   for  Page 26 of 32 HC-NIC Page 26 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT regularization   in   service   and/or   for   status   of  permanent   workman   would   not   accrue   and   such  relief   or   benefit   cannot   be   granted   on   such  ground.  

16. Besides   this,   at   the   time   of   hearing,  learned advocate for the claimant failed to make  out   any   ground   against   the   observation   and  finding   of   fact   recorded   by   the   learned   Labour  Court. 

16.1 Learned advocate for the claimant placed  reliance   on   the   Government   Resolution   dated  17.10.1988.   Mr.Karia,   learned   advocate   for   the  Nigam,   however,   submitted   that   the   said  resolution   is   not   applicable   or   binding   to   the  Nigam   which   is   an   autonomous   body,   more  particularly   because   the   Nigam   has   not   adopted  the   said   Government   Resolution   dated   17.10.1988  by   passing   appropriate   resolution   in   its  government   body   and   that,   therefore,   reliance  placed on Government Resolution dated 17.10.1988  is misconceived.  


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         16.2       There   is   substance   in   the   said 

contention by learned advocate for the Nigam and  therefore,   any   benefit   on   strength   of   the   said  Government   Resolution   cannot   be   extended   to   the  claimant.  

16.3 After considering such relevant aspects,  the   learned   Labour   Court   has   denied   the   demand  for   regularization   in   service   and   considering  material available on record, this Court does not  find any justification to interfere with the said  decision by the learned Labour Court.   16.4 Besides   this,   learned   advocate   for   the  claimant has failed to make out any ground to set  aside   the   said   decision   by   the   learned   Labour  Court  and  to grant  benefit   of regularization  in  service and status of permanent workman.  16.5 Therefore,   the   award   does   not   warrant  any interference. 

17. However,   before   concluding,   it   is  Page 28 of 32 HC-NIC Page 28 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT relevant and necessary to mention that the award,  to certain extent, requires modification inasmuch  as   while   rejecting   the   reference,   the   learned  Labour   Court   has   observed   that   the   Nigam   will  continue the claimant's service. 

17.1 However,   while   passing   the   said  direction,   the   learned   Labour   Court   has   also  observed   that   the   Nigam   shall   continue   the  claimant in service as daily wager. 

17.2 While   rejecting   the   reference,   the  learned Labour Court could not have and ought not  to have passed such direction or could not have  and ought not have made such observation inasmuch  as   the   said   direction   or   observation   by   the  learned   Labour   Court   would   adversely   affect   the  claimant's case for regularization in service as  and when circumstances or justification for such  action   /   benefit   arise   in   accordance   with   law.  The said observation and direction by the learned  Labour   Court   would   scuttle   all   options   of   the  claimant and it puts embargo on Nigam's right and  Page 29 of 32 HC-NIC Page 29 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT option   of   considering   claimant's   case   for  regularization   at   proper   stage   and   time   and   in  accordance with law and the direction also seals  the   fact   of   the   claimant   for   all   times   to   come  and   by   such   direction   he   would   be   destined   to  continue   only   as   daily   wager   upto   the   age   of  superannuation   and   that,   therefore,   the   said  observation deserves to be set aside. 

18. In the result, the award dated 23.9.2011  in Reference No.6 of 2003 is partly modified with  the direction that the observation by the learned  Labour Court that the claimant will be continued  as   daily   wager,   is   set   aside   and   the   award   is  restricted to the decision by the learned Labour  Court rejecting the demand for regularization and  status   of   permanent   workman   with   the  clarification   that   as   and   when   circumstances  arise   for   considering   the   case   of   the   claimant  for regularization in service in accordance with,  the Nigam may consider the case of the claimant  in  accordance  with  law and  applicable  rules  and  Page 30 of 32 HC-NIC Page 30 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT policy and will pass appropriate order. 

19. At this stage, Mr.Shah, learned advocate  for   the   claimant   submitted   that   the   claimant  desires to make appropriate representation to the  Nigam   in   view   of   the   fact   that   the   vacancy   on  permanent post of sanctioned set up still exists  and certain other persons (working as Driver with  the   Nigam)   have   been   regularized   in   service   by  the Nigam while claimant's case remained pending  before the Court. 

19.1 In   view   of   the   said   submission   by  learned   advocate   for   the   claimant,   it   is  clarified that for the claimant to decide future  course of action as he deems fit or as he may be  advised   and   there   is   nothing   for   the   Court   to  observe on that count except to clarify that if  the   claimant   submits   such   representation,   the  competent   authority   may   consider   the   same   in  accordance with law and applicable rules. 

With   the   aforesaid   clarifications   and  Page 31 of 32 HC-NIC Page 31 of 32 Created On Sat Aug 12 02:40:30 IST 2017 C/SCA/20/2013 JUDGMENT observations,   the   petition   being   Special   Civil  Application No.17955 of 2014 stands disposed of.

In the result, the petition filed by the  Nigam,   i.e.   Special   Civil   Application   No.20   of  2013 stands dismissed and Rule is discharged.  So  far   as   the   petition   filed   by   the   workmen,   i.e.  Special   Civil   Application   No.17955   of   2014   is  concerned, the award is partly modified and with  the   clarifications   recorded   above,   the   said  petition stands disposed of.

Sd/-

(K.M.THAKER, J.) Bharat Page 32 of 32 HC-NIC Page 32 of 32 Created On Sat Aug 12 02:40:30 IST 2017