IMPORTANT POINT
Appointment on compassionate ground could not be claimed as a matter of right.

Headnote:LABOUR LAW — U.P. Industrial Disputes Act, 1947 — Section 6-N — Retrenchment — Several workers of appellant unit died in harness and union took up the cause for employment of widows/dependents — Management agreed to employ dependents as contract labour till decision was taken to employs them — Respondents were given work on contract basis for maintenance of office records, cleaning and mopping of floors etc. on a consolidated amount — In 1998 appellant decided to dispense with system forthwith — And contracts with respondents were terminated — Labour Court found that respondents were workmen and were entitled to be regularised — Court applied principle of lifting of the veil of contract — High Court upheld the award holding that settlement between employer and employee acquired a statutory status and job contractors could not be said to be contract labour — Appeal — Appellant company did not have any rule or scheme for compassionate appointment — Appointment on compassionate ground could not claimed as a matter of right — Labour Court and High Court erred in holding that there was settlement — No material before Labour Court to conclude that contract was not a job contract and in fact employment had been given — Award was liable to be set aside.
       Held : The undisputed position is that the appellant-company does not have any rule or scheme for compassionate appointment. As was observed in State of Haryana and Ors. v. Rani Devi & Anr. (AIR 1996 SC 2445), it need not be pointed out that the claim of person concerned for appointment on compassionate ground is based on the premise that he was dependant on the deceased-employee. Strictly this claim cannot be upheld on the touchstone of Article 14 or 16 of the Constitution of India. However, such claim is considered as reasonable and permissible on the basis of sudden crisis occurring in the family of such employee who has served the State and dies while in service. That is why it is necessary for the authorities to frame rules, regulations or to issue such administrative orders which can stand the test of Articles 14 and 16. Appointment on compassionate ground cannot be claimed as a matter of right. Die-in harness Scheme cannot be made applicable to all types of posts irrespective of the nature of service rendered by the deceased-employee.(Paras 10 and 11)
       Both the Labour Court and the High Court held that there was a settlement arrived at in the meeting dated 12.8.1988. On bare reading of the minutes of the meeting it is clear that there was in fact no settlement. The relevant portion reads as follows:
       "The Union demanded that the widows/dependants of deceased employees should be given employment in the plant as was done earlier. They have written several letters in this regard but no fruitful result has come out. The widows/dependants are waiting for employment for the last 2 years and are at the verge of starvation. Till such time, the decision for their employment is received from the corporation office, the management should employ them as contract labour so that they may earn their bread and avoid starvation. Further, the management should ensure payment of minimum wages. The number of such needy widows/dependants of deceased employees is about thirteen.
       The management agreed to consider the Union suggestion sympathetically. On the request of Union the Management informed that this will be done in a weeks time." (Para 15)
       To provide sustenance to the family members of the deceased workmen certain job works were given. The agreements have been placed on record. The cost of the contract, the nature of the work and the time allowed have been clearly indicated in each of the contracts. It also clearly indicates the number of persons who are to be engaged for carrying out the job contract work. There was no material before the Labour Court to conclude that the contract was not a job contract and in fact employment had been given. There is no foundation for such a conclusion.(Para 16)
       Above being the position, the Labour Court and the High Court were not justified in holding that the respondent in each case was a workman and/or that there was retrenchment involved. The award of the Labour Court and the judgment of the High Court are therefore set aside (Para 17)

JUDGMENT

Arijit Pasayat, J. — These appeals involve identical issues and are, therefore, disposed of by this common judgment.

2. Appellant calls in question legality of the judgment rendered by a learned Single Judge of the Uttaranchal High Court. Several writ petitions were filed by the appellant questioning correctness of the award dated 23.12.1999 holding that respondent No.2 in the writ petitions (respondent No.1 in each of these appeals) were entitled to re-instatement and compensation of Rs.5,000/- with litigation expenses of Rs.500/- each. It was held by the Labour Court that there was clear violation of the provisions of Section 6-N of the U.P. Industrial Disputes Act, 1947 (in short the Act) as cessation of their work amounted to retrenchment which was in violation of the aforesaid provision.

3. Background facts in a nutshell are as follows:

M/s Indian Drugs & Pharmaceuticals Limited (for short IDPL), the appellant, is a public undertaking fully owned and controlled by the Government of India. It has one of its units at Virbhadra, Rishikesh, District Dehradun. Several workers of the unit died in harness leaving behind the widows and families. The IDPL Workers Union took up their cause and other disputes in a meeting held on 12.8.1988. In the said meeting as item No.3 the Union demanded that the widows/dependants of deceased employees should be given employment in the plant. Till such time the decision for their employment is received from the corporate office, the management should employ them as contract labour. The management agreed to consider the Unions suggestion sympathetically.

4. However, appellant decided to give work to them on contract basis by appointing them as contractor for maintenance of office records, cleaning and mopping of floors etc. on a consolidated amount. As contractors they were liable to pay provident fund and other statutory liabilities for the labourers engaged by them to carry out the contracts. The respondents were appointed as contractors from time to time. After the meeting which was held on 12.8.1988 the Head Office vide letter dated 27.5.1998 took a decision that contract labour arrangement should cease. It was also decided that in view of financial stringencies it has been decided to dispense with system forthwith and existing contractual agreements were to be reviewed.

5. With effect from 1.8.1998 contracts with the respondents were terminated. Respondents raised industrial dispute which was referred to the Labour Court U.P. Dehradun who gave the award against the appellant-company on the ground that the said respondents were the workmen and they were entitled to be regularized. It applied the principle of lifting the veil of contract to find out the correct position.

6. Against the said order, the appellant-company filed Writ Petitions which were dismissed on the ground that the minutes of the meeting dated 12.8.1988 was a settlement between the parties in terms of Section 2(p) of the Industrial Disputes Act, 1947 (in short the ID Act) read with Rule 58 of the Industrial Disputes (Central) Rules, 1957 (in short the Central Rules). High Court recorded a finding that the settlement between the employer and employees acquired a statutory status, as a result of which the job contractors cannot be said to be contract labourers. In fact they are workmen in view of their engagement. Therefore, the respondents cannot be said to be contract labourers but were in reality workmen.

7. It was noted by the High Court that there was settlement arrived at between the management of the Rishikesh Unit of the appellant-company and the office bearers of the Union and since the respondent in each appeal was given employment in furtherance of the policy of the appellant-company, they were workmen. The High Court noted that the employment was given to the dependants/widows of the workmen who had died in harness. Since the engagement was pursuant to a settlement in terms of Section 2(p) of the ID Act,

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2006 Supreme(SC) 576

IMPORTANT POINTAppointment on compassionate ground could not be claimed as a matter of right.

Cases Referred (10)

IMPORTANT POINT
Appointment on compassionate ground could not be claimed as a matter of right.