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2001 Supreme(SC) 101

SUPREME COURT OF INDIA
A.P.Misra : D.P.Mohapatra
Gujarat Agricultural University
Versus
Rathod Labhu Bechar
Case No. : 691 of 2001
Date of Decision : 1/18/01
Advocates Appeared: Chauhan D.G. : Dhavan Rajeev : Hazarika Sumita : Kapur Rajiy : Kapur Sanjay : Patel Parul : Patel S.C. : Raval Kirit N. : Shah Devyaniben T. : Watii Hemantika

Headnote:

Industrial Disputes - Regularisation of Daily-Rated Labourers - Industrial Disputes Act, 1947, Section 10(1)(C) - Summary of Acts and Sections: The judgment discusses the regularisation of daily-rated labourers under the Industrial Disputes Act, 1947, Section 10(1)(C) and the proposed scheme for their absorption. The court examines the eligibility conditions, phased regularisation, and payment of wages for workers who have completed 10 years of service. The judgment emphasizes the obligation of the employer to regularise workers and create equivalent posts for their absorption.

Fact of the Case:

The case involves an educational institution engaging daily-rated labourers for various activities without regularising their services. The Industrial Tribunal directed the institution to regularise the services of the workers who completed 10 years of service. The High Court set aside the award and directed the institution to formulate a scheme for their absorption.

Finding of the Court:

The court found that the workers were eligible for absorption and emphasized the obligation of the employer to regularise them. It modified the proposed scheme to relax the eligibility conditions and directed the State Government to assess and create additional posts for their absorption within six months.

Issues: The main issues were the regularisation of daily-rated labourers, eligibility conditions for regularisation, phased absorption, and payment of wages for workers who completed 10 years of service.

Ratio Decidendi: The court held that the workers with long experience should be considered for regularisation, and the eligibility conditions should be relaxed. It emphasized the obligation of the employer to create equivalent posts for the absorption of workers. The court also directed the State Government to assess and create additional posts for their absorption within six months.

Final Decision: The court approved the proposed scheme for the absorption of daily-rated workers, subject to modifications, and directed the State Government to assess and create additional posts for their absorption within six months.

A.P.MISRA, J.

(1) DELAY condoned in Special Leave Petition (C) No. 1386 Of 2001(CC No.2360).

(2) LEAVE granted in all the special leave petitions.

(3) THE aforesaid appeals raise common questions hence are being disposed of by means of this common judgment. These appeals arise out of industrial disputes through references by the Government of Gujarat under Section 10 (1) (C) of the Industrial Disputes Act, 1947. It raised the following questions:

"WHETHER the employees listed in the schedule annexed, be made permanent, as from the day, when they complete 240 days service, and if in affirmative, whether they are entitled to all the benefits at par with the permanent employees, and be paid arrears."

Before entering into the issues in this case it is necessary to give certain essential facts in order to appreciate the controversies.

(4) THE-APPELLANT is an educational institution fully aided by the State Government and is engaged in the educational activities in agriculture and allied sciences and humanity and is also prosecuting research in agriculture and other allied science. It performs its duties and functions under the statutory provisions and in doing so, it engages daily-rated labourers for various activities. According to the appellant these labourers are being paid their wages as per the minimum wages fixed by the State Government from time to time under the Minimum Wages Act. They were engaged due to exigencies of work, without considering relevant factors about their educational qualification, age limit and other relevant requirements for the purpose of regular appointment under the Recruitment Rules. There are different agricultural research centres at different places with different projects and these daily-rated workers are unskilled, semiskilled, skilled and field labourers of different categories. Since the University is grant-in-aid institution fully funded by the State Government, it requires prior permission/sanction of the State Government for appointment of its employees. In fact, all the posts are sanctioned by the State Government and thereafter they are filled by the University, as per the Recruitment Rules. The present case pertains to daily wage workers who are plumbers, carpenters, sweepers, pump operators, helpers and masons etc. According to the appellant, no posts are sanctioned for them and hence they are working on daily-rated basis. Thus their appointments are on irregular basis and not in accordance with the Recruitment Rules. (5) THE respondents raised, as aforesaid, an industrial dispute who are daily-rated employees, before the Industrial Tribunal, Rajkot. The Industrial Tribunal directed the appellant to regularise the services of all such daily-rated labourers who have completed 10 years of service (with minimum of 240 days) as on 1/1/1993 with pay and all allowances along with other benefits of the permanent Class IV employees. The appellant being aggrieved filed the writ petition before the High Court challenging this Award. Learned Single Judge partly allowed the writ petition and set aside the Award, however, with a direction to the appellant to make the payment to the workmen at the minimum of the pay scale and also to frame a scheme for the regularisation of such daily-rated labourers. The appellant not satisfied filed letters patent appeals.

(6) THE Special Leave Petition (C) No. 1490 of 1999, arises out of the Letters Patent Appeal No. 1047 of 1997, which concerns 23 respondents who were working as carpenters, masons, plumbers etc. in the appellant-University. The appellant has a huge campus covering the large area of about 16000 sq. mtrs. and 240 staff quarters of the employees at Junagadh and other places. Nine daily rated workers were involved in Letters Patent Appeal No. 1051 of 1997 from which arises Special Leave Petition (C) No. 2528 of 1999. Similarly, there were three daily-rated workers in Letters Patent App


















































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