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2000 Supreme(SC) 754

2000(3) Supreme 344
SUPREME COURT OF INDIA
(From Madras High Court)
S. Saghir Ahmad & Doraiswamy Raju, JJ.
Indian Overseas Bank -Appellant
versus
I.O.B. Staff Canteen Workers Union & Anr. -Respondents
Civil Appeal Nos. 1407-1409 of 1998
Decided on 11-4-2000
Counsel for the Parties :
For the Appearing Parties : Soli J. Sorabjee, Attorney General, S. Ganesh, P.S. Sudheer, P. Venugopal, K.J. John, S. Ravindra Bhat, Ms. Manju Mishra, Advocates.

IMPORTANT POINT
Workmen of co-operative canteen run, for the staff of Indian Overseas Bank, with the fund of Bank held to be workmen of Bank.

Headnote:(i) Industrial Disputes Act, 1947 -Section 2(s) r/w Section 25-O-Workmen of non-statutory recognised canteen-Closure of canteen without following procedure prescribed in Section 25-O-Claim for reinstatement on basis that workmen belong to main establishment-Co-operative canteen run for staff of bank-Promoters serving members of Staff of Bank-All facilities to run canteen provided by Bank-Subsidy given by Bank-Canteen run by funds provided by Bank-Canteen workers were enlisted under welfare fund scheme of Bank, PF Scheme and eligible for periodical medical check up-Bank undertook obligation to provide canteen services though may not be any statutory obligation-Provision of canteen had become part of service condition of employees-Promoters permitted to run canteen by merely in control of day to day affairs of canteen-Bank cannot absolve its liabilities when it was really using canteen management as its instrumentality and agent-Industrial Tribunal correctly held that canteen workmen of Bank and Section 25-O(6) was violated.

       The standards and nature of tests to be applied forfinding out the existence of Master and Servant relationship cannot be confined to or concretised into fixed formula(s) for universal application, invariably in all class or category of cases. Though some common standards can be devised, the mere availability of anyone or more or their absence in a given case cannot by itself be held to be decisive of the whole issue, since it may depend upon each case to case and the peculiar device adopted by the employer to get his needs fulfilled without rendering him liable. That being the position, in order to safeguard the welfare of the workmen, the veil may have to be pierced to get at the realities. Therefore, it would be not only impossible but also not desirable to lay down abstract principles or rules to serve as a ready reckoner for all situations and thereby attempt to compartmentalise and peg them into any pigeonhole formulas, to be insisted upon as proof of such relationship. This would only help to perpetuate practising unfair labour practices than rendering substantial justice to the class of persons who are invariably exploited on account of their inability to dictate terms relating to conditions of their service. Neither all the tests nor guidelines indicated as having been followed in the decisions noticed above should be invariably insisted upon in every case, nor the mere absence of any one of such criteria could be held to be decisive of the matter. A cumulative consideration of a few or more of them, by themselves or in combination with any other relevant aspects, may also serve to be the safe and effective method to ultimately decide this often agitated question. Expecting similarity or identity of facts in all such variety or class of cases involving different type of establishments and in dealing with different employers would mean seeking for things, which are only impossible to find. (Para 18)

       In the case before us, the claim is not that there was any such statutory obligation and the entire consideration proceeded only on the footing that it is a non-statutory recognised canteen falling within the second of the three categories envisaged in the earlier decisions and the Tribunal as well as the Division Bench of the High Court endeavoured to find out whether the obligation to run was explicit or implicit on the facts proved in this case. The factual findings recorded by the Tribunal and the Division Bench as also the materials relied upon therefor, have been already set out in detail, supra and it is unnecessary to refer to them in greater detail once over again. The canteen in question was being run from 1.1.73 and even before that, indisputably, the Bank itself had arranged for running of the same through a contractor and similar arrangement to run through a contractor was once again made by the Bank on its closure on 26.4.90, though after a period of some break from 21.10.92. Besides this, the nature and extent of assistance, financial and otherwise in kind, provided which have been enumerated in detail, would go to establish inevitably that the Bank has unmistakably and for reasons obvious always undertaken the obligation to provide the canteen services, though there may not be any statutory obligation and it will be too late to contend that the provision of canteen had not become a part of the service conditions of the employees. The materials placed on record also highlight the position that the Bank was always conscious of the fact that the provision and availing of canteen services by the staff are not only essential but would help to contribute for the efficiency of service by the employees of the Bank. That it was restricted to the employees only, that the subsidy rate per employee was being also provided, and the working hours and days of the canteen located in the very Bank buildings were strictly those of the Bank and the further fact that no part of the capital required to run the same was contributed by anybody self, either the Promoters or the staff using the canteen are factors which strengthen the claim of the workers. It was also on evidence that the canteen workers were enlisted under a welfare fund scheme of the Bank besides making them eligibile for periodical medical check up by the doctors of the Bank and admitting them to the benefits of the Provident Fund Scheme. The cumulative effect of all such and other facts noticed and considered in detail provided sufficient basis for recording its findings by the Tribunal as well as the Division Bench of the High Court ultimately to sustain the claim of the workers, in this case. The learned Single Judge seems to have not only overlooked certain relevant material but by adopting a negative approach had belittled the relevance and importance of several vital and important factual aspects brought on record. If on the facts proved, the findings recorded by the Tribunal are justified and could not be considered to be based upon no evidence , there is no justification for the High Court in exercising writ jurisdiction to interfere with the same. The promoters of the canteen being permanent employees in the service of the Bank, permitted to run the canteen, by merely being in control of the day-to-day affairs of the canteen, the Bank cannot absolve of its liabilities when it was really using the canteen management as its instrumentality and agent. The cloak apart, the voice definitely is that of Jacobs . Consequently, we could neither find any error of law or other vitiating circumstances in the judgment of the Division Bench nor any infirmities in the process of reasoning or gross unreasonableness and absurdities in the conclusions arrived at to restore the Award, so as to justify and warrant our interference in the matter. (Paras 19 to 21)

       (ii) Industrial Disputes Act, 1947-Award of Industrial Tribunal-Writ thereagainst-Scope of jurisdiction of writ Court-Findings of fact recorded by fact-finding authority cannot normally be disturbed-Liberal reappreciation of evidence by writ Judge and drawing conclusion of his own on pure question of fact impermissible. (Para 17)

       

JUDGMENT

Raju, J.-These three appeals relate to a common grievance of a group of 33 canteen employees of Indian Overseas Bank Staff Canteen and involve for consideration a vexed question but often relentlessly fought and put in issue between the workers and management as to status and relationship of workers in such canteens vis-a-vis the main industry or establishment concerned. At the Central Office of the Indian Overseas Bank at Madras (for short "IOB"), the canteen facilities have been provided to the staff employees and the departments of the Central Office, in the main building, new building and canteen block as also C&I Branch and Cathedral Branch Initially, it appears that the said canteen was run through a contractor engaged by the management of the bank. But subsequently on the representation of the All India Overseas Bank Employees Union, the Central Office of IOB agreed for the floating of a society in the name and style of "Indian Overseas Bank Staff Co-operative Canteen" with effect from 3.1.73. In order to facilitate the running of such a canteen the Central Office has not only got the erstwhile contractor, who was running the same in the canteen block, vacated the canteen premises on 30.10.72 but wanted the Co-operative Canteen to commence its functions from 2.1.73 to ensure continuity in providing the services to the staff. The Central Office agreed to provide all infrastructural facilities, such as premises, furniture, utensils, electricity (other than fuel), cost of fuel initially upto a maximum of 600 per month, subsequently increased to 6000 per month and water supply. This was in addition to providing the oven and burners, wash basin, gas and cylinders and a subsidy @ Rs.12.50 per member of the staff using the canteen. The Co-operative canteen was promoted in that manner not only with the blessings and active co-operation and assistance of the Central Office but the all promoters were actually the serving members of the staff of the bank. No doubt, after the formation of the Co-operative canteen, a separate account has been opened in the name of the canteen which was operated by the promoters and periodically funds have been credited to the said account by the Central Office to carry on the day-to-day administration of the bank. It is also a fact that the staff required were employed by the promoters who have been administering the canteen. It is seen from the inter se correspondence and the material placed on record that the amount of contribution of funds and the subsidy was being increased from time to time depending upon the escalation of the costs of maintenance on the representation of the persons in charge of the running of the co-operative canteen. Despite such increase, having regard to the subsidised and concessional rate of supply of the edibles as also the beverages supplied to the staff employees both ends could not be economically met resulting in the persons incharge of the canteen declaring their inability to continue the canteen in the absence of further increase in the subsidy and grant to make up the vast difference. Since the bank was indifferent, the canteen was closed with effect from 26.4.90.

2. There is no controversy or dispute over the further fact that the canteen was being run only with the funds provided by the Central Office and the amounts realised from day-to-day receipts and neither the promoters nor any of the employees using the canteen otherwise had either contributed any capital or was obliged to make any such contribution to make the canteen economically viable or keep going at any cost. It is also not in dispute that with the closure of the canteen the workers engaged have been thrown out of employment and this resulted in an industrial dispute, raised through the workers union. Their stand was that the staff canteen in question was really managed by the bank though the day-to-day affairs of the management was entrusted to the employees of the bank nominated by the re

































































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