2003(6) Supreme 857
SUPREME COURT OF INDIA
(From Allahabad High Court)
Y.K. Sabharwal & B.N. Agrawal, JJ.
M/s. U.P. Drugs & Pharmaceuticals Co. Ltd. -Appellant
versus
Ramanuj Yadav & Ors. -Respondents
Civil Appeal No. 2537 of 2001
With
SLP (C) No. 18267 of 2003 (@ CC-3847/2000)
Decided on 23-9-2003
Counsel for the Parties :
For the Appellant : R.C. Srivastava, Sr. Advocate, Ms. Rachna Srivastava and Rohit Singh Advocates.
For the Respondents : Jitendra Sharma, Sr. Advocate, Ms. Chandan Ramamurthi, Advocate.
Held : The decision in the case of Mohan Lal does not lay down that if a workman had worked for more than 240 days in any number of years and if during the year of his termination, he had not worked for the said number of days, he would not be entitled to the benefit of Section 25-B. The question with which we are concerned was not under consideration in Mohan Lal s case. If the viewpoint propounded by the management is accepted, then in every year the workman would be required to complete more than 240 days. If in any one year the employer gives him actual work for less than 240 days, the service of the workman can be terminated without compliance of Section 6N of the UP Act, despite his having worked for number of years and for more than 240 days in each year except the last. Such an intention cannot be attributed to the U.P. Act. In the present case, as already noticed, the finding of the labour court is that the respondents worked for more than 240 days in each year from 1983 to 1986 but not having worked for 240 days in the year of termination, the termination was held by the labour court not to be violative of Section 6N. Reference may also be made to the decision in Ramakrishna Ramnath v. The Presiding Officer, Labour Court, Nagpur & Anr. [(1970) 3 SCC 67] where this Court observed that the provision requiring an enquiry to be made to find out whether the workman has actually worked for not less than 240 days during a period or 12 calendar months immediately preceding the retrenchment does not show that a workman, after satisfying the test, has further to show that he has worked during all the period he has been in service of the employer for 240 days in the year. The interpretation propounded for the appellant is wholly untenable. The decision in U.P. State Cooperative Land Development Bank Ltd. v. Taz Mulk Ansari & Ors. [1994 Supp. (2) SCC 745] relied upon by learned counsel for the appellant has no applicability since that was a case of clause (a) of Section 6N and, therefore, Section 2(g) had no relevance. The High Court has rightly concluded that the termination of the respondents was in violation of Section 6N read with Section 2(g) of the UP Act. (Paras 11 and 12)
JUDGMENT
Y.K. Sabharwal, J.-The appellant directed the respondents and few other workmen to cease work w.e.f. 31st March, 1987. According to the appellant, they were casual workers and had worked for a short time and since there was no work, they were asked to cease work and their services were, thus, terminated. The workmen approached the State Government of Uttar Pradesh against their termination and pursuant thereto, the State Government, in exercise of power under Section 4(k) of Uttar Pradesh Industrial Disputes Act, 1947 (for short, the UP Act ) referred the matter to the labour court of Lucknow to decide the dispute. It was not disputed before the labour court that none of the workmen had worked for 240 days in the year preceding the date of termination. In this view, the labour court, in the award dated 31st May, 1991, concluded that the workmen/respondents were not entitled to protection of Section 6N of the UP Act. According to labour court, the workmen ought to have completed 240 days in a calendar year preceding the date of termination/retrenchment so as to claim benefit of Section 6N of the U.P. Act. Considering the evidence, the labour court also held that all the 29 workmen had worked for more than 240 days in each year during the past years prior to 1986. The effect of the finding recorded by the labour court is that the workmen have worked for more than 240 days from the year 1983 to 1986 but they having not worked for 240 days from 1st April, 1986 to 31st March, 1987, they were not entitled to protection and benefit of the continuous service under the UP Act. On appreciation of evidence, the finding recorded by the labour court is as follows:
"In these circumstances, I arrive to the conclusion that the employer have failed to dispute the evidence of the workmen that all the 29 workmen had worked for more than 240 days in each year during the past years prior to 1986. In other words, I reached to the conclusion that although these workmen have not completed 240 days of service in a year preceding the date of their termination but have worked for more than 240 days in each year prior to that after joining the service."
2. Out of 29 workmen before the labour court, the award was challenged by 18 workmen in a writ petition filed in the High Court. The said workmen are respondents in this appeal. By the impugned judgment, the High Court, setting aside the award, has held that under Section 6N read with Section 2(g) of the U.P. Act, it is not necessary for the workmen to complete 240 days in the preceding year and since workmen had completed 240 days in earlier calendar years preceding to 12 months on the date of retrenchment, they were deemed to be in a continuous service and hence their termination in violation of Section 6N of the U.P. Act was illegal. The respondents have been held to be in continuous service. The High Court has directed that they shall be given consequential service benefits including reinstatement except the back wages. The appellant has been directed to pay the wages to the respondents from the date of reinstatement.
3. Assailing the impugned judgment, it has been contended that for applicability of Section 6N read with Section 2(g) of the U.P. Act, it is essential for a workman to complete 240 days in preceding 12 calendar months. Learned counsel for the appellant argues that the respondents having worked for 240 days or more during the period earlier to 12 calendar months is inconsequential. The undisputed fact is that the respondents whose services were terminated w.e.f. 31st March, 1987, did not actually work for 240 days for the period from 1st April, 1986 to 31st March, 1987. The finding of the labour court, however, is that for earlier years, they did work for more than 240 days. What is the consequence of this finding is the question. The correctness of the impugned judgment is required to be examined on these facts. We may note that the respondents have also challenged the impugned ju
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