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2 (2006) 4 SCC 1

18. The correctness of the said findings of the impugned judgment and order passed by the Division Bench are challenged by the learned counsel appearing on behalf of the concerned workmen in these appeals inter alia, contending that the Award of the CGIT passed after adjudication of points of dispute was in relation to the concerned workmen who have been appointed by the Corporation as temporary, badli and part-time workmen after 20.5.1985. These workmen have been appointed by following the procedure under the LIC (Staff) Regulations issued by the Corporation from time to time and they have been discharging permanent nature of work against permanent and regular vacancies as temporary, badli and part-time workmen in the various offices, Zones and Divisions of the Corporation across India. Further, it is contended that the Awards passed by the NIT by Justice R.D. Tulpule, the same being clarified and affirmed by Justice S.M. Jamdar vide reference under Section 36A of the Act, were passed after determination of the points of dispute in relation to the industrial dispute raised by similarly placed workmen of the Corporation who were appointed and had been working on such permanent and regular posts on temporary, badli and part-time basis in Class III and IV categories of employees of the Corporation between 01.01.1982 to 20.05.1985. Therefore, the NIT Awards clarified that those similarly placed workmen were entitled for absorption in terms of the direction given in the Award of Justice R.D. Tulpule which was clarified subsequently by the Award passed in 1988 by Justice S. M. Jamdar. Of course, the said Awards by the NIT were challenged before this Court in the SLP No. 14906 of 1988 at the end of which eight out of nine unions therein entered into a compromise with the Corporation and the same was permitted by this Court by way of an interim measure without any prejudice to the rights and contentions of the members of the other Union who had not entered into such compromise. Accordingly, the said SLP was disposed of by this Court vide order dated 01.3.1989. Further, it is contended by the learned counsel that the CGIT has rightly placed reliance upon the terms and conditions of the Awards of Justice Tulpule and Justice Jamdar. Though the said Awards were challenged before this Court and the matter was disposed of in terms of the compromise arrived at between the parties therein, the NIT Awards were not set aside or terminated by the Corporation or by any other Award or order passed by NIT or any other Court. Hence, the same will be operative and binding between the parties under Section 18(3)(d) read with Section 19 sub-section(3) & (6) of the Act. In support of their contention, reliance was placed upon the decision of The Life Insurance Corporation Of India v. D. J. Bahadur & Ors.3.

19. It is also contended by Mr. Shekhar Naphade, learned amicus curiae on behalf of the workmen that the industrial dispute was raised under the provision of Section 2(k) read with Section 10 and 12 of the Act by the concerned workmen who have been working as temporary, badli and part-time workmen in the posts of Class III and Class IV of the Corporation for their absorption in the permanent posts. The said claim of the concerned workmen was disputed by the Corporation; the Central Government referred the existing industrial dispute to the CGIT for adjudication of the points of dispute as it has got the jurisdiction to adjudicate the said industrial dispute. He placed 3 (1981) 1 SCC 315 strong reliance upon Schedule IV of the Act and invited our attention to Item No. 6 in Schedule II under which matters other than those specified in the III Schedule are within the jurisdiction of the Labour Court and also Item No. 11 of Schedule IV which provides for Conditions of Service for Change of which Notice is to be given by the Corporation in case of any increase or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department or shift, [not occasioned by the circumstances over which the employer has no control]. Since the Corporation is a Statutory Body which has come into existence under the LIC Act, 1956, it is required to follow the provisions of the Act with regard to service conditions of the workmen, including better service conditions, absorption, regularisation etc. He has also placed reliance upon the Item No. 10 of V Schedule to the Act, wherein it states that it is an unfair labour practice on the part of the employer to employ workmen as “badlis”, casuals or temporaries and continue them as such for years, with the object of depriving them of the status and privileges of permanent workmen and the same is prohibited under Section 25T of the Act. Further, strong reliance was placed by him upon the provisions under Section 25T and 25U under Chapter VC of the Act, with regard to the Unfair Labour Practices on the part of the employer wherein it is stated that an employee or a workman and Trade Union shall not commit any unfair labour practice in relation to the matter as enumerated in the V Schedule referred to supra and further Section 25U of the Act contemplates that any person either employer or Trade Unions of Employers who commits unfair labour practice as enumerated in the V schedule shall be punished with imprisonment for a term which may extend to six months or with fine which may extend to Rs.1,000/- or both. Therefore, it is contended that in the case on hand, the workmen concerned have been employed on temporary, badli and part-time basis for several years, depriving them of the privileges of permanent workmen which is a clear case of unfair labour practice on the part of the Corporation under Item 10 Schedule V, which is prohibited under Section 25T of the Act and the Corporation would be liable for penalty under Section 25U of the Act. Therefore, the CGIT has got ample power to adjudicate the existing industrial dispute between the parties on the basis of the points of dispute referred to it with respect to the claim raised by the concerned workmen. Further, in justification of the Awards passed by the NIT in giving direction to the Corporation to absorb similarly situated workmen from 01.01.1982 till 20.05.1985, strong reliance was placed by him upon the case of Bharat Bank Ltd. v. Bharat Bank Employees Union4 wherein, this Court discussed the powers of Industrial Tribunal to override the contracts. Therefore, the aforesaid Awards passed by the NIT are binding between the parties under Section 18(3) of the Act. The Awards passed by the NIT in a similar dispute are still operative as the same are not terminated by either of the parties as provided under Section 19(6) of the Act, even after the expiry of the period of operation under Section 19(3) of the Act, & therefore, the Awards shall continue to be operative & binding on the parties until a period of two months has elapsed from the date on which notice is given by the Corporation intimating its intention to terminate the 4 AIR 1950 SC 188 Awards. He further contended that in the case on hand, no such notice is issued by either of the parties and therefore the Awards are operative and binding in law upon the parties.

66.I hope and expect that in the light of what has been said and a past exercise of the corporation situation where a large number of such employees could be engaged without adherence to any formalities or procedures by the various local managements would be completely eliminated and done away with and this kind of employment in the corporation history would be the last occasion. Excepting the temporary employment the corporation will have no occasion or necessity to employ badly workmen it is hoped in future. Though part time employees will continue to be in existence for some more time as I have indicated, the corporation will also see its own way to absorb the part time employees in its regular employment as far as possible and reduce the number of part time employees to the minimum however, whenever, hereafter any occasion or vacancy arises of regular employment in part time categories and employment, then those who have worked part time in accordance with their seniority should be given preference for absorption in the regular cadre of the Corporation’s employment. This should be irrespective of the qualifying age for the entry into corporation’s service qualification but subject to his being found suitable.”

“The Management agrees to consider the temporary/part-tim/badli workmen employed by the petitioner for 85 days in an two years in a Class III post and for 70 days in any three years in a Class IV post in any of its establishments during the period 1.1.82 to 20.5.85, for regular employment on the basis and in the manner stated hereinbeloe. … the selection of the candidate shall be made on the basis of the folloing qualifications, age, test, interview and also having regard to the number of days worked by the candidates. A panel of selected candidates shall be made and the selected candidates shall be appointed in regular employment from the pane in the order of merit propectivity from the dates to be notifdies and when vacancies in sanctioned posts for regular employment are filled from time to time“ Pursuant to the above compromise, this Court passed the following order in SLP No. 14906 of 1988 on 1.3.1989 :-