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AMICUS AI
Citation Codes
Neutral Citations
2010 INSC 41
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 25-F of the Act
  • Industrial Disputes Act, 1947
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 2(s) of the Act
  • Section 2, Subsection (oo) of the Act
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Cites
Cited by
Citation Codes
Neutral Citations
2010 INSC 41
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 25-F of the Act
  • Industrial Disputes Act, 1947
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 2(s) of the Act
  • Section 2, Subsection (oo) of the Act
Smart Summary

Factual and Procedural Background

The appellant was engaged in December 1991 as a casual Mali in the Public Works Department (B&R), State of Haryana, and was posted at the residence of the Chief Minister. His services were terminated on 31-01-1993 without prior notice or retrenchment compensation under the Industrial Disputes Act, 1947. Claiming continuous service of more than 240 days and alleging discriminatory treatment vis-à-vis similarly situated employees who had been retained or regularised, he raised Reference No. 81 of 1999 before the Labour Court, Union Territory, Chandigarh.

The Labour Court, by award dated 10-02-2003, held that the appellant had indeed completed 240 days of continuous service in the twelve months preceding termination, that Section 25-F had not been complied with, and consequently ordered his reinstatement with continuity of service and 50% back wages. The State of Haryana challenged this award in CWP No. 575 of 2004 before the Punjab and Haryana High Court, which on 23-12-2008 allowed the writ petition and set aside the Labour Court’s award. The workman sought special leave, leading to the present Supreme Court appeal.

Legal Issues Presented

  1. Whether the High Court was justified in interfering with and setting aside the Labour Court’s award when the workman had proved continuous service of 240 days and the employer had not complied with Section 25-F of the Industrial Disputes Act, 1947.
  2. Whether differential treatment of the appellant, compared with other similarly situated employees who were reinstated and regularised, rendered the High Court’s decision unsustainable.

Arguments of the Parties

Appellant (Workman)

  • He had worked continuously from December 1991 to 31-01-1993, satisfying the 240-day requirement under Section 25-F.
  • Termination was effected without notice, inquiry, or payment of retrenchment compensation, rendering it illegal.
  • Other employees with identical service conditions had been reinstated and even regularised; singling him out amounted to hostile discrimination.
  • The objection that his initial appointment violated recruitment rules was never raised before the Labour Court or in the first round before the High Court and could not be introduced belatedly.

Respondent (State of Haryana)

  • The appellant had not completed 240 days of service except in the year 1992 and therefore did not fulfil the criteria for protection under Section 25-F.
  • A government circular dated 27-05-1993, allegedly governing regularisation, was not satisfied by the appellant.
  • The initial engagement was contrary to recruitment rules and the constitutional framework governing public employment.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court affirmed the Labour Court’s factual findings, noting that:

  • Evidence from a departmental Junior Engineer (MW-1) confirmed continuous engagement of the appellant from December 1991 to 31-01-1993.
  • The employer failed to issue notice, pay wages in lieu thereof, or provide retrenchment compensation, squarely violating Section 25-F.
  • The departmental circular invoked by the State was irrelevant to retrenchment and could not override statutory safeguards.
  • Comparative data showed that other similarly situated employees (e.g., Gurbax Singh, Mast Ram, Rajesh Kumar) had been reinstated and regularised, whereas the appellant alone was denied similar relief, amounting to discriminatory treatment.
  • The State’s argument regarding the illegality of the initial appointment was raised for the first time during the second round of proceedings before the High Court and therefore could not justify overturning established factual findings.
  • The general principle against illegal appointments in public service was held inapplicable because the appellant sought reinstatement (not regularisation) based on statutory violation of Section 25-F.

The Court concluded that the High Court erred in substituting its view for the Labour Court’s well-supported findings and in neglecting the mandatory nature of Section 25-F.

Holding and Implications

The Supreme Court allowed the appeal, set aside the High Court’s order dated 23-12-2008, and restored the Labour Court’s direction for reinstatement with continuity of service. The appellant, who is already in service, voluntarily relinquished his claim to back wages, a concession recorded by the Court. No costs were awarded.

Implications: The decision reinforces the mandatory compliance with Section 25-F before retrenching a workman and underscores that discriminatory departure from established practice toward similarly situated employees will not be sustained. The ruling resolves the dispute between the parties but does not articulate new legal precedent beyond reaffirming settled principles.

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    Ramesh Kumar v. State Of Haryana .

    P. Sathasivam, J.— Leave granted. This appeal is directed against the judgment and final order dated 23-12-2008 passed by the High Court of Punjab and Haryana at Chandigarh in CWP No. 575 of 2004 whereby the High Court allowed the writ petition filed by the State of Haryana.

    2. According to the appellant, in December 1991, he was appointed as Mali on casual basis in the Public Works Department (B&R), Haryana and worked at the Chief Minister's residence. On 31-1-1993, his service was terminated without any notice or retrenchment compensation as provided in the Industrial Disputes Act, 1947 (hereinafter referred to as “the Act”). After knowing that persons similarly appointed were either allowed to continue or regularised by the Department, the appellant sent a notice to the respondent. Since the Department declined to accede to his request, the appellant made Reference No. 81 of 1999 before the Labour Court, Union Territory, Chandigarh. He pleaded before the Labour Court that he had completed more than 240 days of service and all along he was performing his duties at the residence of the Chief Minister, Haryana. The Government has made a policy that persons who have completed 240 days of service may be regularised, however, instead of regularisation of his services, he was terminated w.e.f 31-1-1993. He prayed before the Labour Court for setting aside the order of termination of his service and for an award for reinstatement with full back wages.

    3. It is the case of the Department that the workman has not completed 240 days of service except in the year 1992. He has not fulfilled the (sic) Circular dated 27-5-1993 entitling him for regularisation of his service. Further, the Government has not framed any policy to regularise the service of persons who have completed 240 days as claimed.

    4. Before the Labour Court, the workman himself was examined as AW 1. On the side of the Department, one Junior Engineer was examined as MW 1. On consideration of the materials placed, the Labour Court, by award dated 10-2-2003, has arrived at a conclusion that the workman has worked with the Department for a period of more than 240 days within 12 calendar months preceding the date of termination i.e 31-1-1993, and in view of non-compliance with Section 25-F of the Act, he is entitled to reinstatement. The Labour Court has also directed reinstatement with continuity of service with 50% back wages from the date of termination. With the above direction, reference was accepted and answered in the affirmative. Aggrieved by the said award of the Labour Court, the State of Haryana challenged the same in CWP No. 575 of 2004 before the Punjab and Haryana High Court.

    5. By the impugned order dated 23-12-2008, the High Court set aside the award of the Labour Court granting reinstatement and back wages, consequently allowed the writ petition. Questioning the said decision of the High Court, the workman has filed the present appeal by way of special leave.

    6. Heard learned counsel for the appellant workman as well as learned counsel for the respondent State of Haryana.

    7. The only point for consideration in this appeal is whether the High Court was justified in setting aside the award of the Labour Court when the appellant had established that he was in continuous service for a period of 240 days in a calendar year, particularly, when similarly placed workmen were regularised by the Government.

    8. It is not in dispute that the appellant was appointed as a Mali and posted at the residence of the Chief Minister in the year 1991. The materials placed by the appellant before the Labour Court clearly show that he had worked for three years and there was no break during his service tenure. He was issued identity card to work in the residence of the Chief Minister and no reason was given for his termination. It is also his case that there was no show-cause notice and no inquiry was conducted.

    9. A perusal of the order of the Labour Court clearly shows that one Shri Nasib Singh, Junior Engineer, who deposed as MW 1 on behalf of the Department has categorically stated that the workman was engaged by the Department on muster rolls as Mali in December 1991 and he worked up to 31-1-1993. He also stated that there was no break from December 1991 to January 1993 during which the workman was engaged.

    10. The Labour Court as per the materials placed rightly found that the workman has continuously worked from December 1991 to 31-1-1993. It also found that the workman worked for 240 days with the Department within 12 calendar months preceding his date of termination i.e 31-1-1993. It is useful to refer to the definition of “retrenchment” and “workman” in the Act which reads thus:

    “2. (oo) ‘retrenchment’ means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include—
    (s) ‘workman’ means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person—
    25-F. Conditions precedent to retrenchment of workmen.—No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—
    (a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
    (b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of six months; and
    (c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification in the Official Gazette.”

    It is not in dispute that the appellant is a “workman” as defined under Section 2(s) and “retrenchment” if any it should be in accordance with Section 25-F of the Act.

    11. Admittedly, in the case on hand, the workman was not given any notice or pay in lieu of notice or retrenchment compensation at the time of his retrenchment. In view of the same, the Labour Court has correctly concluded that his termination is in contravention of the provisions of Section 25-F of the Act. Though the Department has relied on a circular, the Labour Court on going through the same rightly concluded that the same is not applicable to the case of the retrenchment.

    12. In addition to the factual conclusion by the Labour Court, namely, continuance for a period of 240 days in a calendar year preceding his termination, the appellant has also placed relevant materials to show that persons similarly situated have already been reinstated and their services have been regularised. It is his grievance that the appellant alone has been meted out with hostile discrimination by the Department. He also highlighted that in respect of some of the workmen who were appointed and terminated, after similar awards passed by the Labour Court, the management did not challenge the same before the High Court by filing writ petitions. He also pointed out that in some cases where a challenge was made before the High Court by filing writ petitions however, after dismissal of the writ petitions those persons were reinstated. In fact, according to the appellant some of them were even regularised.

    13. The details of other identically situated persons are as follows:

    Sl. No. Name Labour Court High Court Supreme Court Present status 1. Gurbax Singh Claim allowed No writ petition filed. No SLP filed. Reinstated on 19-6-2004. Service regularised w.e.f 1-7-2004. 2. Mast Ram Claim allowed Writ petition filed by respondents, dismissed. SLP filed by the respondents, also dismissed. Reinstated on 19-6-2004. Service regularised. 3. Rajesh Kumar Claim allowed Writ petition filed by respondents, dismissed. SLP filed by the respondents, also dismissed. Reinstated. Service regularised. 4. Paramjit Kumar Claim allowed Writ petition filed by respondents, dismissed. SLP filed by the respondents, also dismissed. Reinstated. Service regularised. 5. Ramesh Kumar (petitioner) Claim allowed In 1st round writ petition filed by respondents, dismissed. In 2nd round writ petition was allowed. SLP filed by the respondents, matter remitted back. Now petitioner has filed the present writ petition. Reinstated on 18-6-2004 but service not regularised.

    The perusal of all these details clearly shows that the appellant alone was singled out and discriminated.

    14. We have already noted the specific finding of the Labour Court that the appellant had fulfilled 240 days in a calendar year before the order of termination. The appellant has also highlighted that he is the sole bread earner of his family and his family consists of his old mother, wife and two minor sons and a minor daughter. The abovementioned chart also shows that identical awards passed in the case of Mast Ram, Rajesh, Paramjit and Amarjit (sic Ramesh) were upheld by the High Court and the award in favour of the appellant alone was quashed by the High Court in the second round of litigation.

    15. Though, it was contended that the initial appointment of the appellant was contrary to the recruitment rules and constitutional scheme of employment, admittedly, the said objection was not raised by the Department either before the Labour Court or before the High Court at the first instance. It was only for the first time that they raised the said issue before the High Court when the matter was remitted to it that too the same was raised only during the arguments. In such circumstances, the High Court ought not to have interfered with the factual finding rendered by the Labour Court and in view of the different treatment to other similarly placed workmen the Department ought not to have challenged the order of the Labour Court.

    16. In addition to the above infirmities, the appellant has also pointed out that one Gurbax Singh who was engaged subsequent to the appellant on casual basis has challenged his termination order, which was quashed by the Labour Court; interestingly the Department did not challenge the award of the Labour Court by filing writ petition. It was also highlighted by the appellant that on the basis of the award, Gurbax Singh was not only taken back in service but his services were regularised w.e.f 1-7-2004.

    17. We are conscious of the fact that an appointment on public post cannot be made in contravention of recruitment rules and constitutional scheme of employment. However, in view of the materials placed before the Labour Court and in this Court, we are satisfied that the said principle would not apply in the case on hand. As rightly pointed out, the appellant has not prayed for regularisation but only for reinstatement with continuity of service for which he is legally entitled.

    18. It is to be noted in the case of termination of casual employee what is required to be seen is whether a workman has completed 240 days in the preceding 12 months or not. If sufficient materials are shown that the workman has completed 240 days then his service cannot be terminated without giving notice or compensation in lieu of it in terms of Section 25-F. The High Court failed to appreciate that in the present case the appellant has completed 240 days in the preceding 12 months and no notice or compensation in lieu of it was given to him, in such circumstances his termination was illegal. All the decisions relied on by the High Court are not applicable to the case on hand more particularly, in view of the specific factual finding by the Labour Court.

    19. Under these circumstances, the impugned order of the High Court dated 23-12-2008 passed in CWP No. 575 of 2004 is set aside. It is not in dispute that the appellant workman is continuing in service and the learned counsel representing him fairly stated that he is willing to forego back wages as awarded by the Labour Court, the same is recorded. Consequently, the civil appeal filed by the workman is allowed to the extent mentioned above. No costs.

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    Comments

    Ramesh Kumar v. State Of Haryana .
    (Jan 13, 2010)