Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Neutral Citations
2002 INSC 448
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 227 of the Constitution of India
  • Section 25-B of the Industrial Disputes Act
  • Section 25-F of the Industrial Disputes Act
  • Section 240 of the statute
  • Section 25-B(2)(a)(ii) of the Industrial Disputes Act
  • Article 136 of the Constitution
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article (no specific title mentioned)
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Neutral Citations
2002 INSC 448
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 227 of the Constitution of India
  • Section 25-B of the Industrial Disputes Act
  • Section 25-F of the Industrial Disputes Act
  • Section 240 of the statute
  • Section 25-B(2)(a)(ii) of the Industrial Disputes Act
  • Article 136 of the Constitution
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Article (no specific title mentioned)
Smart Summary

Factual and Procedural Background

The respondent workman was employed by the appellant on 1 July 1990 as a helper. His services were terminated on 26 February 1991 on the ground that his work performance was unsatisfactory. The appellant did not comply with the retrenchment requirements of Section 25-F of the Industrial Disputes Act, 1947, asserting that the respondent had not completed the statutory threshold of 240 days’ continuous service, but had worked only 219 days during the preceding twelve-month period.

The respondent raised an industrial dispute that was referred to the Labour Court (Reference No. 129 of 1995). After evaluating evidence—including the respondent’s own admission that he had not completed 240 days—the Labour Court rejected the reference, holding that the termination was valid and Section 25-F did not apply.

The respondent challenged the award before the High Court under Article 227 of the Constitution (Civil Writ Petition No. 15275 of 1999), asserting that, when Sundays and paid holidays were counted, he had actually worked 240 days. Relying on this Court’s decision in American Express, the High Court re-evaluated the evidence, concluded that the respondent had completed 240 days, and ordered his reinstatement with full back wages.

The appellant sought special leave to appeal. The Supreme Court granted leave and disposed of the present appeal.

Legal Issues Presented

  1. Whether, on the evidence produced, the respondent workman had in fact completed 240 days of continuous service in the twelve months preceding his termination.
  2. Whether the High Court, in exercise of its jurisdiction under Article 227 of the Constitution, was justified in overturning the Labour Court’s finding of fact on the above question.

Arguments of the Parties

Appellant's Arguments

  • The respondent worked only 219 days; even with Sundays and paid holidays included, the total reached at most 239 days because he participated in a strike on 25 February 1991.
  • The respondent himself admitted before the Labour Court that he had not completed 240 days of service.
  • Under Article 227, the High Court could interfere with findings of fact only if they were perverse or unsupported by evidence; re-appreciation of evidence in the present case exceeded that limited jurisdiction.
  • The burden of proving completion of 240 days rests on the workman; mere assertions or affidavits are insufficient as held in Range Forest Officer v. S.T. Hadimani.

Respondent's Arguments

  • There was a miscalculation of working days; counting Sundays and paid holidays, the respondent had actually completed 240 days of service.
  • Under the principle laid down in American Express, days for which wages are paid, including holidays, must be counted towards the 240-day requirement.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Nibaran Chandra Bag v. Mahendra Nath Ghughu, AIR 1963 SC 1895 Article 227 jurisdiction is supervisory and not appellate; interference permitted only for jurisdictional error or perversity. Cited to underline the narrow scope of Article 227 and to show that High Courts should not re-appreciate evidence as an appellate court.
Mani Nariman Daruwala v. Phiroz N. Bhatena, (1991) 3 SCC 141; AIR 1991 SC 1494 High Court may interfere with findings of fact only if no reasonable person could reach such findings (perversity standard). Reinforced the limited grounds on which the High Court could disturb factual conclusions.
Savita Chemicals (P) Ltd. v. Dyes & Chemical Workers' Union, (1999) 2 SCC 143 Under Article 227, findings that are merely one of two possible views should not be set aside unless patently erroneous. Supported the appellant’s contention that the Labour Court’s view could not be displaced by the High Court merely because another view was possible.
Workmen v. American Express International Banking Corporation, (1985) 4 SCC 71 Interpretation of “actually worked” in Section 25-B(2)(a)(ii); Sundays and paid holidays count towards 240 days. Relied upon by the High Court to include holidays in the computation; the Supreme Court acknowledged the principle but held that even with such inclusion the respondent fell short.
Range Forest Officer v. S.T. Hadimani, (2002) 3 SCC 25 Burden lies on the workman to prove 240 days of work; self-serving affidavits are insufficient without cogent evidence. Used by the Supreme Court to emphasise absence of evidence proving 240 days, leading to reversal of the High Court’s order.

Court's Reasoning and Analysis

The Court began by reaffirming that Article 227 confers only supervisory power and does not permit the High Court to act as an appellate forum. It cited a consistent line of precedent—Nibaran Chandra Bag, Mani Nariman Daruwala, and Savita Chemicals—to show that interference with findings of fact is warranted only when they are perverse or unsupported by evidence.

Turning to the merits, the Court identified the decisive factual question: whether the respondent had completed 240 days of continuous service. The Labour Court had answered this in the negative, relying on the respondent’s own statement that he had not completed 240 days and on the employer’s evidence that he had worked only 219 days.

The High Court, however, recalculated the days worked by including Sundays and paid holidays pursuant to American Express and reached a contrary conclusion. The Supreme Court accepted the legal principle from American Express but observed that—even with such inclusions—the respondent’s total reached only 239 days because he was on strike on 25 February 1991. Thus, the High Court’s factual reassessment lacked evidentiary support.

Invoking Range Forest Officer v. S.T. Hadimani, the Court stressed that the workman bears the burden of proving 240 days of service through cogent evidence such as wage records or appointment documents. No such evidence was produced. Accordingly, the High Court’s intervention was labelled a “manifest error.”

Holding and Implications

Appeal Allowed; High Court judgment set aside; Labour Court award restored.

The decision restores the Labour Court’s dismissal of the reference, thereby denying reinstatement and back wages to the respondent. It reinforces the limited scope of Article 227 supervisory jurisdiction and confirms that a workman must adduce concrete evidence—beyond mere assertion—to establish completion of 240 days of service. No new legal doctrine is created, but existing principles on burden of proof and supervisory review are emphatically re-affirmed.

To access the original judgment, please Sign In or Subscribe.

    Essen Deinki v. Rajiv Kumar .

    C. Banerjee, J.— Leave granted.

    2. Generally speaking, exercise of jurisdiction under Article 227 of the Constitution is limited and restrictive in nature. It is so exercised in the normal circumstances for want of jurisdiction, errors of law, perverse findings and gross violation of natural justice, to name a few. It is merely a revisional jurisdiction and does not confer an unlimited authority or prerogative to correct all orders or even wrong decisions made within the limits of the jurisdiction of the courts below. The finding of fact being within the domain of the inferior tribunal, except where it is a perverse recording thereof or not based on any material whatsoever resulting in manifest injustice, interference under the article is not called for.

    3. The observations above, however, find affirmance in the decision of this Court in Nibaran Chandra Bag v. Mahendra Nath Ghughu AIR 1963 SC 1895. In Nibaran AIR 1963 SC 1895 this Court has been rather categorical in recording that the jurisdiction so conferred is by no means appellate in nature for correcting errors in the decision of the subordinate courts or tribunals but is merely a power of superintendence to be used to keep them within the bounds of their authority. More recently, in Mani Nariman Daruwala v. Phiroz N. Bhatena (1991) 3 SCC 141, AIR 1991 SC 1494 this Court in a similar vein stated:

    “In the exercise of this jurisdiction the High Court can set aside or ignore the findings of fact of an inferior court or tribunal if there was no evidence to justify such a conclusion and if no reasonable person could possibly have come to the conclusion which the court or tribunal who (sic) has come or in other words it is a finding which was perverse in law. Except to the limited extent indicated above the High Court has no jurisdiction to interfere with the findings of fact.”

    4. Needless to record that there is total unanimity of judicial precedents on the score that error must be that of law and patently on record committed by the inferior tribunal so as to warrant intervention — it ought not to act as a court of appeal and there is no dissension or even a contra-note being sounded at any point of time till date. Incidentally, the illegality, if there be any, in an order of an inferior tribunal, it would however be a plain exercise of jurisdiction under the article to correct the same as otherwise the law courts would fail to subserve the needs of the society since illegality cannot even be countenanced under any circumstances.

    5. In this context reference may also be made to a still later decision of this Court in the case of Savita Chemicals (P) Ltd. v. Dyes & Chemical Workers' Union (1999) 2 SCC 143 wherein this Court in para 19 of the Report observed:

    “Under Article 227 of the Constitution of India, the High Court could not have set aside any finding reached by the lower authorities where two views were possible and unless those findings were found to be patently bad and suffering from clear errors of law.”

    6. Adverting however, to the factual score at this juncture, it appears that the respondent workman joined the services of the appellant as a helper on 1-7-1990 and continued till 26-2-1991. The service was terminated however, on the ground that in his short stay with the appellant his work was not found to be of desired standard. The appellant did not feel it expedient, however, to comply with the provisions of Section 25-F by reason of non-completion of 240 days in the preceding 12 calendar months. As a matter of fact it has been the contention of the appellant at all stages that the respondent workman worked for a total period of 219 days in totality within the preceding 12 months' period thereby falling short of statutory requirements noticed above.

    7. Mr Ranjit Kumar, learned Senior Advocate appearing in support of the appeal, however, incidentally contended that the calculation of 219 days stands out to be inclusive of Sundays and paid holidays excepting the working days on which the respondent was unauthorisedly absent since there was a strike on 25-2-1991.

    8. The factual score depicts that the respondent workman raised an industrial dispute which was referred to by the appropriate Government for adjudication to the Labour Court vide Reference No. 129 of 1995. Significantly, Mr Ranjit Kumar with his usual eloquence emphasised the stand of the respondent workman himself in his statement recorded on 25-11-1997 in the proceedings before the Labour Court to the effect that he had not completed 240 days of service. Subsequently, upon consideration on the factual score, the Labour Court passed an award in favour of the appellant herein and returned a finding on fact that the workman concerned had not completed 240 days and, therefore, the termination was held to be valid and compliance with Section 25-F was not required in terms of the provisions of the Industrial Disputes Act.

    9. To continue with the factual backdrop, the respondent workman however, filed a civil writ petition being CWP No. 15275 of 1999 against the said award passed by the learned Labour Court, wherein the workman stated that there was some amount of miscalculation of the number of working days since the respondent workman had in fact worked for exactly 240 days.

    10. Needless to record, however, that on 25-2-1991, there was a strike and the respondent workman did also participate therein and this aspect of the matter stands highlighted by Mr Ranjit Kumar in his submissions that the High Court in exercising jurisdiction under Article 227 of the Constitution reappreciated the evidence on record and was pleased to take a different view from the finding arrived at by the learned Labour Court on the basis of Workmen v. American Express International Banking Corpn. (1985) 4 SCC 71 inter alia, recording that while calculating the actual working days, Sundays and other paid holidays can be taken into account. Mr Ranjit Kumar has been rather vocal in the context that the High Court failed to consider that even if the calculation of the respondent workman was taken on the face value, the workman had completed only 239 days as on 25-2-1991, when admittedly the workers went on strike and the respondent workman thus had not completed 240 days. Mr Ranjit Kumar contended that in exercise of jurisdiction under Article 227 of the Constitution, the High Court has not only exceeded its jurisdiction but clearly erred in interfering with the finding of fact. Aggrieved by the order, the appellant herein thus moved this Court under Article 136 of the Constitution.

    11. The principal issue thus appears to be as to whether the respondent workman had completed 240 days of service in terms of the statutory provisions. The evidence in support of the workman concerned himself however answers the issue in the negative, since it has been categorically stated: “it is correct that I have not completed 240 days of service … I proceeded on strike on 25-2-1991”. Admittedly the respondent workman's service was terminated on 26-2-1991 due to non-satisfactory work and it has been Mr Ranjit Kumar's definite and emphatic submission that the respondent had worked not more than 219 days as noticed hereinbefore and question thus of having an answer in the affirmative to the issue posed hereinbefore would not arise.

    12. Incidentally, be it noted that the Labour Court upon perusal of the evidence and on a thorough probe into the matter came to a definite conclusion that the worker has failed to prove that his services had been terminated in an illegal manner by the respondent (the appellant herein) and thereby recorded an answer in the negative for the issue as posed. In the final analysis upon consideration of all relevant facts the Labour Court recorded:

    “In the final analysis, in the view of my above findings, I see no merit in this reference and the same is hereby declined. The appropriate government be informed.”

    13. It is against this order of the Labour Court that the High Court was approached under Article 227 of the Constitution and the latter relying upon the decision of this Court in American Express (1985) 4 SCC 71 came to a conclusion that the workman in fact has completed 240 days of service and as such allowed writ petition and did set aside the award of the Labour Court with a direction that the petitioner be reinstated in service with full back wages. It is this finding which is under challenge before this Court with the grant of leave under Article 136 of the Constitution. The record of proceedings referred to thus depicts that the Labour Court while rejected the reference on appreciation of facts, the High Court thought it fit to reverse it on the basis of the law laid down by this Court in American Express (1985) 4 SCC 71. It would thus be convenient to note the opinion expressed by this Court in American Express (1985) 4 SCC 71 at this juncture. This Court in para 5 of the Report has stated as below:

    “5. Section 25-F of the Industrial Disputes Act is plainly intended to give relief to retrenched workmen. The qualification for relief under Section 25-F is that he should be a workman employed in an industry and has been in continuous service for not less than one year under an employer. What is continuous service has been defined and explained in Section 25-B of the Industrial Disputes Act. In the present case, the provision which is of relevance is Section 25-B(2)(a)(ii) which to the extent that it concerns us, provides that a workman who is not in continuous service for a period of one year shall be deemed to be in continuous service for a period of one year if the workman, during a period of twelve calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than 240 days. The expression which we are required to construe is ‘actually worked under the employer’. This expression, according to us, cannot mean those days only when the workman worked with hammer, sickle or pen, but must necessarily comprehend all those days during which he was in the employment of the employer and for which he had been paid wages either under express or implied contract of service or by compulsion of statute, standing orders etc. The learned counsel for the management would urge that only those days which are mentioned in the Explanation to Section 25-B(2) should be taken into account for the purpose of calculating the number of days on which the workmen had actually worked though he had not so worked and no other days. We do not think that we are entitled to so constrain the construction of the expression ‘actually worked under the employer’. The Explanation is only clarificatory, as all explanations are, and cannot be used to limit the expanse of the main provision. If the expression ‘actually worked under the employer’ is capable of comprehending the days during which the workman was in employment and was paid wages — and we see no impediment to so construe the expression — there is no reason why the expression should be limited by the Explanation. To give it any other meaning than what we have done would bring the object of Section 25-F very close to frustration. It is not necessary to give examples of how Section 25-F may be frustrated as they are too obvious to be stated.”

    14. Whilst it is true that the law seems to be rather well settled as regards the “bread-and-butter” statutes and the welfare legislation introduced in the statute-book for the purposes of eradication of social malady, it is a duty incumbent on the law courts to offer a much broader interpretation since the legislation is otherwise designed to prevent perpetration of any arbitrary action and no contra-view thus is plausible. American Express (1985) 4 SCC 71 affirms such a view.

    15. Significantly, the appellant's contention does not run counter to the opinion expressed in American Express (1985) 4 SCC 71. It has been the definite contention of Mr Ranjit Kumar that even the test laid down under American Express (1985) 4 SCC 71 does not stand to acceptance of the workmen's case. The requirement of the statute of 240 days cannot be disputed and it is for the employee concerned to prove that he has in fact completed 240 days in the last preceding 12 months' period. As noticed hereinbefore, it has been the definite case of the workman concerned whilst at the stage of evidence that he has not worked for 240 days, as noticed hereinbefore in this judgment more fully. And it is on this score Mr Ranjit Kumar has been rather emphatic that the High Court has thus fallen into a grave error in reversing the order of the Labour Court. It is a finding of fact which the High Court cannot possibly overturn without assailing the order of the Labour Court as otherwise perverse. The High Court unfortunately has not dealt with the matter in that perspective.

    16. The proof of working for 240 days is stated to be on the employee in the event of any denial of such a factum and it is on this score that this Court in Range Forest Officer v. S.T Hadimani (2002) 3 SCC 25 was pleased to state as below:

    “In our opinion the Tribunal was not right in placing the onus on the management without first determining on the basis of cogent evidence that the respondent had worked for more than 240 days in the year preceding his termination. It was the case of the claimant that he had so worked but this claim was denied by the appellant. It was then for the claimant to lead evidence to show that he had in fact worked for 240 days in the year preceding his termination. Filing of an affidavit is only his own statement in his favour and that cannot be regarded as sufficient evidence for any court or tribunal to come to the conclusion that a workman had, in fact, worked for 240 days in a year. No proof of receipt of salary or wages for 240 days or order or record of appointment or engagement for this period was produced by the workman. On this ground alone, the award is liable to be set aside.”

    17. Having regard to the opinion of this Court in the last-noted decision, question of affirmance of the impugned judgment cannot and does not arise more so by reason of the fact that even this Court searched in vain in regard to the availability of such an evidence. The High Court, in our view, has thus committed a manifest error in reversing the order of the Labour Court.

    18. The appeal, therefore, succeeds. The impugned order stands set aside and quashed and the order of the Labour Court stands restored. No costs.

    Use AI to get other relevant cases.

    Comments

    Essen Deinki v. Rajiv Kumar .
    (Oct 29, 2002)