IMPORTANT POINT
If an incumbent is appointed as an apprentice/trainee and even if a contract of such apprenticeship has not been registered, then also he does not cease to be an apprentice and his position does not become that of a workman.

Headnote:Apprentices Act, 1961-Sections 2(aa), (aaa), (b), (d), (e), (f), (q), (r), 3 to 22, 37-Apprenticeship Rules, 1992-Rules 6, 7, 8, 11 to 14-U.P. Industrial Disputes Act, 1947-Sections 2(z), 2(l)-Industrial Disputes Act, 1947-Sections 2(s), 25F-Indian Boilers Act, 1923-Recruitment of Apprentices-Contract of apprenticeship has not been registered-Whether non registration of the contract can render the contract void or illegal-(No)-By non registration of the contract, position of apprentice is not changed to that of a workman-Expression shall appearing in sub-section (4) of Section 4 shall be interpreted directory and not mandatory-On termination of services of an apprentice after completion of period of training-Apprentice cannot claim benefit of Section 25F of Industrial Disputes Act.
       Held : A.K. Mathur and N. Santosh Hegde, JJ.
       From the scheme of things it is more than apparent that the Apprentices Act, 1961 is a complete code in itself and it lays down the conditions of the apprentices, what shall be their tenure, what shall be their terms and conditions and what are their obligations and what are the obligations of the employer. It also lays down that the apprentices are trainees and not workmen and if any dispute arises then the settlement has to be done by the Apprenticeship Adviser as per Section 20 of the Apprentices Act, 1961 and his decision thereof is final. Now, under the scheme of these things, it clearly shows that the nature and character of the apprentice is nothing but that of a trainee and he is supposed to enter into a contract and by virtue of that contract he is to serve for a fixed period on a fixed stipend. This will not change the character of the apprentice to that of a workman under the employer where he is undergoing the apprentice training. Sub-section (4) of Section 4 only lays down that such contract should be registered with the Apprenticeship Adviser. But by non-registration of the contract, the position of the apprentice is not changed to that of a workman. (Para 38)
       It is true that sub-section (4) of Section 4 lays down that the contract of apprenticeship should be registered with the Apprenticeship Adviser so that the Apprenticeship Adviser can monitor and keep a record thereof. Just because the contract of apprenticeship is not registered that will not render the contract as invalid resulting in change of status of an apprentice to that of a workman. (Para 38)
       Therefore, viewing the provision of this Act in the light of the discussion made above, we are of the opinion that the expression "shall" appearing in sub-section (4) of Section 4 shall be construed directory and not mandatory. (Para 40)
       Therefore, we hold that the expression "shall" appearing in sub-section (4) of Section 4 of the Apprentices Act, 1961 is directory and non-registration of the contract will not change the character of the apprentice and they will not acquire the status of a workmen. Once an incumbent is appointed as an apprentice he will continue to be apprentice unless a formal order of appointment is followed. It is also necessary to mention here that the definition of the work workman as given in Section 2(z) of the U.P. Industrial Disputes Act, 1947 and Section 2(s) of the Industrial Disputes Act, 1947. Both the definitions includes apprentice. But the expression appearing in Section 2(z) of the U.P. Industrial Disputes Act and Industrial Disputes Act 1947 are not applicable to the apprentices appointed under the Apprentices Act, 1961. The Apprentices Act is a code in itself and it clearly stipulates that in Section 2(aa) apprentice means a person who is undergoing apprenticeship training in pursuance of contract of training and the workers are employed for wages for work done by them. Section 18 clearly mentions that the apprentices are not workmen and "the provisions of any law with respect to labour law shall not apply or in relation to such apprentices". Therefore, reading of definition of apprentice in Sections 2(aa) and 2(r) read with Section 18 of the Apprentices Act leaves no manner of doubt that this Act which is special Act it does not cover the apprentices and it precludes the application of any other labour laws, i.e. U.P. Industrial Disputes Act & Industrial Disputes Act, 1947. When both these Acts are not applicable then labour court/industrial Tribunal will not have any jurisdiction to entertain any dispute arising therefrom. The application of the U.P. Industrial Disputes Act 1947 are the Industrial Disputes Act 1947 automatically stand excluded. (Paras 42 and 43)
       As Per S.B. Sinha, J. (Concurring Opinion)
       An apprentice, as defined in Section 2(aa) of the said Act, is a person who enters into a contract of apprenticeship for the purpose of undergoing apprenticeship training in a designated trade. Entering into a contract of apprenticeship, therefore, is the basis for attracting the provisions of the said Act. (Para 76)
       It is neither in doubt nor in dispute that an apprentice within the meaning of the provisions of the said Act would per se not be a workman within the meaning of Section 2(z) of the U.P. Industrial Disputes Act. It is further not in dispute that in terms of Section 18 of the Act the apprentices being trainees and not workers would not be entitled to the benefits of provisions of any labour laws. (Para 77)
       Once a contract of apprenticeship commences, the same cannot be brought to an end except in accordance with law. By reason of non-registration of the contract of apprenticeship, the same does not become a nullity. If it is to be held that by reason of non-registration of such contract of apprenticeship the contract itself comes to an end, it would be detrimental to the interest of the apprentices, which would frustrate the object of the Act. The definition of Apprentice nowhere states that an apprentice with a view to obtain the benefits of the said Act must also be registered. Section 18 of the said Act says that an apprentice shall not be a worker. It does not say that an unregistered apprentice shall be a worker. (Paras 89 and 90)
       It is not in dispute that the list of apprentices used to be sent by the Apprenticeship Adviser himself and, thus, presumably the preliminary scrutiny in that regard had been made by the said authority. If in a given case, as noticed hereinbefore, the employer fails to get the contract of apprenticeship registered and/or fails to carry on his obligations in terms of Section 11 of the Act, he faces penal consequences in terms of Section 31 of the Act. The employer, furthermore, is liable to pay compensation for termination of apprenticeship as would appear from Rule 6 of the Apprenticeship Rules, 1962. (Para 92)
       We are, therefore, are of the considered view that non-registration of the contract of apprenticeship would not render the same nugatory. Subject to the foregoing supplemental reasons, I respectfully concur with the judgment of Mathur, J. (Paras 114 and 115)

JUDGMENT

A.K. Mathur, J.-In all these appeals common question of law is involved, therefore, they are disposed of by common order.

2. The main question involved in these appeals is what is the scope of Apprentices Act, 1961 vis a vis the U.P. Industrial Disputes Act, 1947, Industrial Disputes Act, 1947 and the Indian Boilers Act, 1923.

3. The Apprentices Act, 1961 was promulgated primarily for the purpose of recruiting the apprentices. The idea behind was strong industrial base across the country. For the industrial growth it was necessary to have trained man power and for that purpose the apprentices were recruited.

4. The Introduction, Objects and Reasons for enacting this Act reads as under:-

INTRODUCTION

"After India gained independence, a wave to have its own strong industrial base swept the country. Backed by Government policies, industrial growth had a quantum leap. With the industrial growth a need was felt to have trained man-power and for that steps were taken to arrange for training of apprentices in the industry. After some years it necessitated that the training being imparted to the apprentices should be regulated by legislation. Accordingly the Apprentices Bill, 1961 was introduced in a Parliament to provide for the regulation and control of training of apprentices.

STATEMENT OF OBJECTS AND REASONS

The question of undertaking legislation for regulating the training of apprentices in industry has been under the consideration of the Government for a long time. Expert committees which went into the question have recommended such legislation. Although certain establishment in the public and private sectors have been carrying out programmes of training of skilled workers on a systematic basis, industry in general has not as yet fully organized such programmes. In the context of the Five Year Plan and the large scale industrial development of the country, there is an increasing demand for skilled craftsmen. The Government considers that it is necessary fully to utilize the facilities available for the training of apprentices and to ensure their training in accordance with the programmes, standards and syllabi, drawn up by expert bodies.

The Bill is intended to give effect to these objectives."

5. Now we shall examine the necessary provisions of the Act.

Section 2 deals with the definition. Section 2(aa) defines "apprentice" which means a person who is undergoing apprenticeship training in pursuance of a contract of apprenticeship.

6. Section 2 (aaa) deals with "apprenticeship training" which means a course of training in any industry or establishment undergone in pursuance of a contract of apprenticeship and under prescribed terms and conditions which may be different for different categories of apprentices.

7. Section 2(b) deals with "Apprenticeship Adviser" which reads as under:

" `Apprenticeship Adviser means the Central Apprenticeship Adviser appointed under sub-section (1) of Section 26 or the State Apprenticeship Adviser appointed under sub-section (2) of that section."

8. Section 2(d) defines "Appropriate Government".

9. Section 2(e) defines designated trade which means a trade of any vocational course which the Central Government, after consultation with the Central Apprenticeship Council, may by notification in the Official Gazette specify as a designated trade for the purposes of this Act.

10. Section 2(f) deals with "employer" which means any person who employs one or more other persons to do any work in an establishment for remuneration and includes any person entrusted with the supervision and control of employees in such establishment.

11. Section 2(q) defines "trade apprentice" which means an apprentice who undergoes apprenticeship training in any such trade or occupation as may be prescribed.

12. Section 2(r) deals with "worker" which means any person who is employed for wages in any kind of work and who gets his wages directly from the employer but shall not include an apprentice referred to in clause (aa).

13. Secti

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2004 Supreme(SC) 37

IMPORTANT POINTIf an incumbent is appointed as an apprentice/trainee and even if a contract of such apprenticeship has not been registered, then also he does not cease to be an apprentice and his position does not become that of a workman.

Cases Referred (18)

IMPORTANT POINT
If an incumbent is appointed as an apprentice/trainee and even if a contract of such apprenticeship has not been registered, then also he does not cease to be an apprentice and his position does not become that of a workman.