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2006 Supreme(SC) 1178

2006(9) Supreme 416
SUPREME COURT OF INDIA
(From Madhya Pradesh High Court)
S.B. Sinha and Markandey Katju, JJ.
State of M.P. & Ors. - Appellants
versus
Lalit Kumar Verma - Respondent
Civil Appeal No. 5185 of 2006
(Arising out of S.L.P. (C) No. 3080 of 2005)
Decided on 24-11-2006
Counsel for the Parties :
For the Appellants : S.K. Dubey, Sr. Advocate, Amit Mishra and B.S. Banthia, Advocates.
For the Respondent : Ashok Mathur, Advocate.

Headnote:LABOUR LAW - Industrial Disputes Act, 1947 - Section 25F - Respondent was appointed on daily wages - Industrial dispute raising claim to be classified in permanent category of workman - Award was made holding that having worked continuously for more than six months, respondent acquired right for classification in category of permanent clerk and termination without complying Section 25F of the Act was illegal - High Court upheld award in writ - Appeal - Standard Standing Order providing for classification of employees - A workman was entitled to be classified a permanent or temporary employee if conditions precedent were satisfied - Respondent was not appointed against clear vacancy or in a permanent post or placed on probation - Working on daily wages alone would not entitle him to status of a permanent employee - He could not have been directed to be regularised in service - Distinction between “irregular appointment” and “illegal appointment” - Impugned order was liable to be set aside - In peculiar facts and circumstances, benefits already given to respondents not to be recovered.

       Held : The respondent was also not appointed in terms of the statutory rules. He was furthermore not entitled to any regular scale of pay attached to any post. Ordinarily, therefore, he could not have been directed to be regularized in service having regard to the Constitution Bench decision of this Court in Secretary, State of Karnataka & Ors. vs. Umadevi (3) & Ors. [(2006) 4 SCC 1].(Para 9)

       The question which, thus, arises for consideration, would be : Is there any distinction between irregular appointment and illegal appointment? The distinction between the two terms is apparent. In the event the appointment is made in total disregard of the constitutional scheme as also the recruitment rules framed by the employer, which is State within the meaning of Article 12 of the Constitution of India, the recruitment would be an illegal one; whereas there may be cases where, although, substantial compliance of the constitutional scheme as also the rules have been made, the appointment may be irregular in the sense that some provisions of some rules might not have been strictly adhered to.(Para 11)

       The Labour Court, Industrial Tribunal as also the High Court, therefore, was not correct in directing regularisation of service of the respondent.(Para 17)

       The legal position somehow was uncertain before the decision rendered by the Constitution Bench of this Court in Uma Devi (supra). It has categorically been stated before us that there was no vacant post in the department in which the respondent could be reinstated. The State had also adopted a policy decision regarding regularisation. The said policy decision has also no application in the case of the respondent. Even otherwise, it would be unconstitutional being hit by Article 16 of the Constitution of India.(Para 21)

       Keeping in view the peculiar facts and circumstances of this case, we are of the opinion that the interest of justice would be sub-served if we direct that any benefit which has already been given to the respondent shall not be recovered. He is also directed to be paid a sum of Rs.1,50,000/- (One lakh fifty thousand) towards compensation and costs for condoning the massive delay in filing the Special Leave Petition.(Para 22)

       

JUDGMENT

S.B. Sinha, J. - Leave granted.

2. Respondent herein was appointed on daily wages. Indisputably, his recruitment was not made in terms of the statutory rules. No offer of appointment was also issued. He filed an application before the Labour Court purported to be for his classification in permanent category of workman. An Award was made on the premise that he having worked continuously for a period of more than six months, acquired a right for classification in the category of permanent clerk and in that view of the matter, his services could not have been terminated without complying with the provisions of Section 25F of the Industrial Disputes Act, 1947. He was directed to be classified on the permanent basis as clerk from two years prior to the date of his filing the application, i.e., 11th November, 1991. He was also held to be entitled to prescribed wages and thus, the amount of difference in wages of the said post and other benefits was directed to be paid. A writ petition was preferred thereagainst by the appellants before the High Court, which was also dismissed by a learned Single Judge, opining that no case had been made out to interfere therewith.

3. Shri S.K. Dubey, learned Senior Counsel appearing on behalf of the appellants would contend that the impugned judgment cannot be sustained in view of the fact that the respondent, in law, was not entitled to be classified as a permanent employee under the provisions of Madhya Pradesh Industrial Relations Act, 1960. Strong reliance in this behalf was placed on State of Madhya Pradesh & Ors. vs. Yogesh Chandra Dubey & Ors. [(2006) 9 SCALE 73 : (2006) 8 SCC 67)]. It was urged that in any event the respondent should not have been directed to be held entitled to back wages from 1992.

4. Mr. Ashok Mathur, learned counsel appearing on behalf of the respondent, on the other hand, would submit :-

(i)that the Special Leave Petition being barred by limitation, the delay in filing the same should not be condoned;

(ii)as the certificates issued in favour of the respondent had been examined by three Courts, this Court should not interfere therewith.

5. The application was filed by the respondent before the Labour Court on the premise that the order of termination dated 10.10.1991 was illegal and he should have been declared permanent on 1st April, 1987 after classification in the category of Supervisor and Clerk.

Clause 2 of the Standard Standing Orders reads as under:

"2. Classification of employees. Employees shall be classified as (i) permanent, (ii) permanent seasonal, (iii) probationers, (iv) badlies, (v) apprentices, and (vi) temporary:

(i)A permanent employee is one who has completed six months satisfactory service in a clear vacancy in one or more posts whether as a probationer or otherwise, or a person whose name has been entered in the muster roll and who is given a ticket of permanent employee;

***

(vi)temporary employee means an employee who has been employed for work which is essentially of a temporary character, or who is temporarily employed as an additional employee in connection with the temporary increase in the work of a permanent nature; provided that in case such employee is required to work continuously for more than six months he shall be deemed to be a permanent employee, within the meaning of clause (i) above."

6. A workman, therefore, would be entitled to classification of permanent or temporary employee, if the conditions precedent therefor are satisfied. Respondent was not appointed against a clear vacancy. He was not appointed in a permanent post or placed on probation. He had also not been given a ticket of permanent employee. Working on daily wages alone would not entitle him to the status of a permanent employee.

7. In Mahendra L. Jain & Ors. vs. Indore Development Authority & Ors. [(2005) 1 SCC 639], this Court opined :

"The 1961 Act provides for classification of employees in five categories. The 1973 Act, as noticed hereinbefore, clearly






























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