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Smart Summary

Factual and Procedural Background

The appeal challenges an order of a learned single Judge dated 22 December 1995 in C.R. No. 19272 (W) of 1984. The single Judge directed that the writ petitioner be deemed to be in service with effect from 23 May 1984 but could be allowed to earn salaries from 22 October 1984 as Deputy Manager, Accounts (Project) in appellant No.1 Company. The writ petitioner reported for work on 22 October 1984 and alleged that he was assured by the Chief of Personnel and Administration that he would be treated as having joined duty from that date. Despite reporting daily, the petitioner was not allowed to join nor paid salary. After unsuccessful attempts (including serving demand for justice and release from previous employer), the petitioner filed a writ (including a prayer for mandamus) seeking a direction restraining the respondents from preventing him from joining and for payment of full salary with effect from 22 October 1984 under appointment letters dated 23 May 1984 and 18 September 1984. The appellants contended before the Division Bench that because the petitioner did not render service in the appointed post until an order of this Division Bench of 16 May 1997 (actual joining on 19 May 1997), he was not entitled to salary for the intervening period. The appellants relied upon several interim orders and other proceedings which they said prevented the petitioner from joining earlier. The Division Bench heard the matter and ultimately dismissed the appeal, affirming the trial judge's order to the extent of granting reliefs to the writ petitioner; each party was directed to bear its own costs, and a prayer for stay of the judgment was refused.

Legal Issues Presented

  1. Whether the writ petitioner is entitled to salary (including arrears) for the period from 22 October 1984 to the date on which he actually joined service, when he was not permitted to join despite having reported for duty.
  2. Whether orders and interim directions in other writ proceedings restraining appointments or requiring notice to an officers' association justified the appellants' refusal to permit the petitioner to join and thereby absolved the appellants from liability to pay salary for the intervening period.
  3. Whether the principle of "no work no pay" applies here so as to deny back wages to a person who, although appointed, did not render service because he was not allowed to join.

Arguments of the Parties

Appellants' Arguments

  • The petitioner did not render any service in the appointed post until he joined in May 1997; therefore he is not entitled to salary for the period 22 October 1984 to 18 May 1997 — invoking the basic principle of "no pay for no work".
  • The appellants were restrained by specific preventive/interim orders passed by the court in other proceedings and/or had been refused permission to allow the petitioner to join; such orders justified their refusal to permit the petitioner to join earlier.
  • The appellants also suggested the respondent (petitioner) was intermittently gainfully employed elsewhere during the period and that the respondent did not diligently pursue the judgment (notifying the company only on 29 January 1997 of the 22 December 1995 order), arguments advanced to contest entitlement to back wages.

Respondent / Writ Petitioner's Arguments

  • The petitioner reported for duty on 22 October 1984 and was allegedly assured by the Chief of Personnel and Administration that he would be treated as having joined from that date, but he was not permitted to join or paid salary despite daily attendance and attempts to secure relief.
  • The company, in affidavits before the trial court, admitted that the appointment order preceded the interim order of 13 August 1984 and that the company assumed that that order might not apply to the petitioner; the company also sought legal opinion and was advised not to allow the petitioner to join without leave of the court referenced in the interim order.
  • The petitioner contended that the company showed lack of due diligence in allowing him to join and that any misconception of law on the company's part does not disentitle him from back wages for the period he attempted to join.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Syndicate Bank v. K. Umesh Nayak, AIR 1995 SC 319 Authority cited for the basic tenet "no pay for no work". The Division Bench referenced this line of authorities to state the general proposition that a person is not entitled to salary for a period when no service was rendered; however, the court proceeded to examine the specific orders and facts to determine applicability.
Paluru Ram Krishnaiah v. Union of India, (1989) 2 SCC 541 Cited in support of the "no pay for no work" principle. Used as part of the bench's statement of settled legal position about entitlement to wages; the concurring judge observed that the cited judgments had no direct bearing on the specific facts of this case.
Bank of India v. T.S. Kelawala, (1990) 4 SCC 744 Authority for the principle that salary is not due where no service is rendered. Referenced by the court to articulate the general legal principle but the court analysed the particular factual matrix and other orders to reach its decision.
Gestetner Duplicator Pvt. Ltd. v. CIT, West Bengal, (1979) 2 SCC 354 Invoked in the context of the general "no work no pay" principle. Referred to in the bench's exposition of the settled legal position; the Division Bench nonetheless focused on the concrete orders and conduct of the parties when applying legal principles.
Palighat BPL v. BPL India Ltd., (1995) 6 SCC 237 Cited by parties in relation to the question of "gainful employment" during the period in question. Referenced by A. Lala, J. in the discussion of the appellant's contention that the petitioner was gainfully employed; the court noted that without record one cannot assert gainful employment and preferred the authority Manorama Verma on this point.
Manorama Verma (Smt) v. State of Bihar, 1994 supp (3) SCC 671 Authority relating to proof required to show gainful employment; absence of records cannot support a finding of gainful employment. The concurring judge considered this authority more acceptable on the point that mere assertion without records cannot establish gainful employment; applied in rejecting the appellants' bare assertion that the petitioner was gainfully employed.

Court's Reasoning and Analysis

The court proceeded in two complementary opinions: the Acting Chief Justice (S.K. Mookherjee, A.C.J.) and A. Lala, J., who concurred and added reasoning.

Core legal starting point acknowledged by the court: a person is generally not entitled to salary for periods when no service has been rendered ("no pay for no work"). The court referred to a series of Supreme Court decisions in this regard to state this settled principle.

The Acting Chief Justice then examined the specific interim and interlocutory orders relied upon by the appellants (including an interim order of 13 August 1984 in C.R. No. 4543 (W) of 1982 requiring notice to the petitioners' Association before appointments to non-selection posts; the disposal of an application by the company on 20 August 1985 with "no order"; and an interim direction on 18 September 1985 in C.O. No. 13315 (W) of 1985 directing respondents to pay salary to the petitioner which was subsequently stayed on 8 July 1986). The court noted the chronology and concluded that the terms of the court orders were explicit enough to show that the petitioner’s appointment, having been made earlier than the dates of issuance of those orders, could not be said to have been interrupted by them.

The bench rejected the appellants' contention that their bona fide but mistaken approach to the court for permission could absolve them of liability to pay the petitioner from his attempted date of joining (22 October 1984). The court emphasized that a belated appraisal or misconception on the appellants' part did not relieve them of paying salary from the date the petitioner attempted to join.

A. Lala, J., while concurring, amplified the factual findings:

  • The trial judge found an "absolute lack of due diligence" on the part of the appellant company in allowing the writ petitioner to join in or after 28 October 1984.
  • The company had introduced new promotion rules effective 1 September 1988 but conceded the point in appeal that these rules could not affect the petitioner whose appointment dated 23 May 1984 was under the 1977 Rules.
  • The appellants initially did not oppose allowing the petitioner to join and gave effect to an order of joining on 19 May 1997; they also did not press the promotion-rules point at final hearing.
  • The concurring judge found that the judgments cited by appellants on the "no work no pay" principle had no bearing on the present facts — each case depends on its facts.
  • Affidavits of the company showed the company had assumed the interim order of 13 August 1984 might not be attracted, had corresponded with the petitioner, and had sought counsel’s opinion (who advised not to allow joining without leave of the judge mentioned in that order), supporting the view that the company's conduct involved misconception and lack of due diligence.
  • The order relied upon by the company was for a limited period and the original writ by the officers' association was later withdrawn for non-prosecution in 1988; consequently the company's misconception of law did not disentitle the petitioner to back wages.
  • On the question of alleged gainful employment by the petitioner, the appellants failed to produce material particulars or records; mere assertions in affidavits could not demonstrate gainful employment and thus did not defeat the claim for back wages.
  • Delay by the petitioner in formally informing the company about the trial court's judgment (notifying only on 29 January 1997) was not sufficient to outweigh the balance of convenience in favour of the company, given the company's own lack of due diligence.

On this analysis the court found no reason to interfere with the trial judge's order granting reliefs to the writ petitioner. The appeal failed and was dismissed; costs were borne by the respective parties.

Holding and Implications

Holding: Appeal dismissed. The Division Bench affirmed the trial judge's order to the extent it granted reliefs to the writ petitioner (including treatment of service and entitlement to salary from the attempted date of joining). Each party was directed to bear its own costs. A prayer for stay of the judgment was refused.

Implications:

  • Direct effect on the parties: The trial court's directions in C.R. No. 19272 (W) of 1984 (as described in the opinion) stand; the petitioner is to be treated in service with effect from the dates indicated in the orders and is entitled to salary/arrears from 22 October 1984 as assessed by the trial court order affirmed by this bench.
  • The court decided the case by applying established ratios and statutes and did not purport to lay down any new principle of law; the opinion notes the decision was reached consistent with ratios already settled by the apex court. No broader new precedent was announced beyond the application of settled principles to the facts of this case.

Administrative note in the judgment: A direction was given that certified copies of the judgment be supplied to the parties within ten days from the date of placing requisite stamps and folios.

    M/S. Burn Standard Co. Ltd & Ors v. Tarun Kumar Chakraborty .

    JUDGMENT

    S.K Mookherjee, A.C.J:— This appeal is directed against an order of a learned single Judge dated 22nd December, 1995 passed in C.R No. 19272 (W) of 1984. The learned single Judge by the said order, inter alia, directed that the writ petitioner should be deemed to be in service with effect from 23rd May 1984, but could be allowed to earn salaries from 22nd October, 1984 as Deputy Manager, Accounts (Project) in the appellant No. 1 Company. The writ petitioner it is pertinent to note, reported for work on 22nd October, 1994 and allegedly have been assured by the Chief of Personnel and Administration that he would be treated to have join his duty on and from 22nd October, 1994. Since the petitioner in spite of the aforesaid factual position and in spite of having reported for duty every day was not allowed to join nor any salary was being paid and since all his attempts including by serving demand of justice prove abortive and because of his release by the previous employer, was compelled to move an application for writ praying amongst others for writ of Mandamus directing the respondents, the appellants herein, not to interfere with or restrain him in joining his office and for payment of full salary with effect from 22nd October, 1984, in terms of his letters of appointment dated 23rd May, 1984 and also 18th September, 1984.

    2. Before us on behalf of the appellants, in substance the only point which has been very strenuously urged is that since the petitioner did not render any service in the appointed post till the date of his appointment in terms of an order of this Division Bench on 16.5.1997 (actual joining having been made on 19.5.1997), he could not be said to be entitled to any salary for the period 22nd October, 1984 to 18th May, 1997. There is no dispute that the petitioner was not allowed to join though the appellants sought justification for their action on the basis of specific preventive orders passed against the appellants by this court in different proceedings and/or refusal of permission to the appellants to allow the petitioner to join.

    3. The relevant orders which had been relied upon on behalf of the appellants may be detailed as follows:—

    (a) In C.R No. 4543 (W) of 1982, at the instance of Burn Standard Officers' Association, B.C Basak, J. On 13.8.1984, passed an interim order, inter alia, to the following effect:—

    “Meanwhile no appointment by way of direct recruitment is to be made in respect of non-selection post without giving a notice of at least seven days to the petitioners' Association. If there is any objection raised by the Association then the Association shall be at liberty to mention this matter before this” court”

    (b) On an application by the Company in the aforesaid writ proceeding seeking leave to allow the writ petitioner to Join in the non-selection post, on 20th August, 1985, the application was disposed of with “no order”.

    (c) In C.O No. 13315(W) of 1985, filed by the writ petitioner, respondent with a prayer for direction to pay his salaries with effect from 22nd October, 1984, U.C Banerjee, J. on 18.9.1985, inter alia, passed the following interim order:—

    “In the meantime respondents are directed to pay salary to the petitioner including the arrears if any as admissible in law.” On an appeal from the said order filed by the present appellants being F.M.A.T No. 3416 of 1985, the said order was stayed on 8.7.1986 The said appeal and the application have ultimately been disposed of on 11.4.1989, by directing that C.R No. 19272 (W) of 1984 and C.R No. 13315 (W) of 1985 be heard analogously and expeditiously. By the order impugned in the instant appeal N.K Mitra, J. disposed of both the writ petitions in the aforesaid manner.

    4. We have carefully considered the effect of the aforesaid orders, the respective cases of the parties and the settled legal position. There cannot be any controversy that a person is not entitled to salary or wages for a period when no service had been rendered by him. The basic tenet is ‘no pay for no work’. Reference may be made to the cases of Syndicate Bank v. K. Umesh Nayak; reported in AIR 1995 SC 319, Paluru Ram Krishnaiah v. Union of India, reported in (1989) 2 SCC 541, Bank of India v. T.S Kelawala, reported in (1990) 4 SCC 744, Gestetner Duplicator Private Limited v. CIT, West Bengal, reported in (1979) 2 SCC 354. In the instant case, the terms of the orders of court as adumbrated hereinabove are explicit enough to show that the writ petitioner/respondents appointment having been made earlier than the dates of issuance of the said orders could not be said to have been interrupted by the effect of the said orders. Even the plea of the appellants of hovering under a mis-conception and abortively approaching this court bona fide for a clear permission cannot exonerate them from the liability of paying the petitioner with effect from his attempted date of joining, namely 22nd October, 1984. The belated appraisement of the appellants is of no consequence as the delivery of the judgment by the learned trial Judge, which is under appeal before us, had been made in the absence of counsel for both the parties, a fact which is well sustained by materials on records:

    5. We do not, however, find any reason to interfere with the order of the learned trial Judge. The appeal, therefore, fails and is dismissed. In the facts of the present case each party will bear his own cost.

    A. Lala, J.:— In concurring with the Hon'ble Acting Chief Justice I feel that I should add few paragraphs in support of His Lordship's findings.

    2. The learned trial Judge made two observations in holding in favour of the writ petitioner which are as follows:—

    (a) There was absolute lack of due diligence on the part of the appellant company to allow the writ petitioner to join his post on 28th October, 1984 and/or thereafter;

    (b) That the company introduced a new promotion rules with effect from 1st September, 1988 superseding all previous Promotion Rules and the writ petitioner in any way could not be affected by the new Promotion Rules when admittedly, his appointment was duly made on 23rd May, 1984 under the then existing Rules, 1977.

    3. At the initial stage of the hearing for the application for appeal the appellant company did not oppose in allowing the respondent/writ petitioner in joining service and has given effect of order of joining on 19th May, 1997.

    4. At the time of final hearing of the appeal the appellant company also not pressed second point as aforesaid as to the applicability of the new Promotional Rules and thereby conceded that since the respondent was given appointment prior to 1988 his service should be regulated as per the earlier Promotional Rules i.e Rules of 1977.

    5. Hence remaining question before the appeal court is to consider correctness of the first observation of trial court.

    6. Mr. Sundarananda Pal and Mr. Prasenjit Bose, learned counsels appearing for the appellant company submitted that there was no lack of due diligence on the part of the company so that the respondent can be entitled for back wages. There was no unfair motive on the part of the appellant to restrain the respondent in Joining service. In fact the appellant company was restrained by various Courts' orders. On the other hand, the respondent was not also very diligent in performing his performance. For an example they said that though the impugned Judgment and order was passed on 22nd December, 1995, the respondent intimated the company about the order only on 29th January, 1997. In this context, the appellant also added, that the employee is gainful employee for the period and he has not suffered any prejudice during the period.

    7. We have carefully considered the Judgments cited by the appellants, as aforesaid, on the well known principle of “no work no pay” and found that these judgments have no bearing with the present situation. Each case has to be considered on the basis of the fact and fact of the case cannot be fit in the judgments.

    8. Mr. Aran Prakash Sarkar, learned counsel appearing for the respondent has drawn our attention to the affidavits of the appellant company before the trial court which comprise following categorical statement:

    “…The company was in a delame inasmuch as the order of appointment which was passed in favour of the writ petitioner much prior to the order dated 13th August, 1984 and as such, the company assuming that the order dated 13th August, 1984 may not be attracted in allowing the writ petitioner to join in this said post and duly made several correspondence with the writ petitioner.

    (xiii) That for the abundant precaution the company also seek for expart opinion from the counsel when the writ petitioner came to join in the post in or about October, 1984 and the company was advised by their learned Advocates not to allow Sri Tapan Kumar Chakraborty the writ petitioner Join in the said post without taking leave from His Lordship the Hon'ble Mr. Justice B.C Basak in pursuance of the order dated 13th August, 1984 in C.R No. 4643 (W) of 1982”.

    9. It appears that the said order was passed for a limited period. The original writ petition made by the concerned Officer's Association was withdrawn for non-prosecution in 1988. Moreover misconception of law is no ground to oppose the legitimate claim of the respondent. Under the circumstances it cannot be said that there was no absolute lack of due diligence on the part of the company which can disentitle the respondent in getting back wages.

    10. So far the incidental point of gainful employment of the respondent is concerned, the appellant did not make out such case either before the trial court or before the appeal court with any material particulars. Mere indication of the occupation of the writ petitioner as ‘service’ or ‘consultant’ in the affidavits, at the time of making submission, cannot be construed that he had worked elsewhere. In this context, two judgments were cited by the contesting parties being Palighat BPL v. BPL India Ltd. reported in (1995) 6 SCC 237 at paragraph 7 and Manorama Verma(Smt) v. State of Bihar reported in 1994 supplementary (3) SCC 671 at paragraph 4, later one is more acceptable inasmuch as without record one cannot be said to be gainfully employed.

    11. In further, the allegations on the part of the appellant company that the respondent did not intimate about the delivery of Judgment by the trial court on 22nd December, 1995 before 29th January, 1997 is not sustainable because balance of convenience in the present case does not go absolutely against the respondent and in favour of the appellant specially on the basis of their due diligence as discussed.

    12. Therefore, the equity reveals that we should not interfere with the judgment and order passed by the trial court in granting reliefs to the respondent writ petitioner in getting his full back wages. We, therefore, affirm the order of the trial court to that extent.

    14.08.97 After the judgment was delivered, learned counsel appearing for the appellants prays for stay of operation of the Judgment and order. Since we have decided the case on the basis of ratios already settled by the apex court, we do not think it is a fit case for grant of stay of operation of the Judgment and order, and such prayer is refused.

    Let xerox certified copy of the judgment be supplied to the parties within ten days from the date of putting in requisite stamps and folios for the same.

    Appeal dismissed
    L.G

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    Comments

    M/S. Burn Standard Co. Ltd & Ors v. Tarun Kumar Chakraborty .
    (Aug 14, 1997)