2007(2) Supreme 56
SUPREME COURT OF INDIA
(From Gujarat High Court)
Dr. AR. Lakshmanan & Altamas Kabir, JJ.
Oil & Natural Gas Corpn. Ltd.—Appellant
versus
Engineering Mazdoor Sangh—Respondent
Civil Appeal No. 6607 of 2005
With
Cont. Petn. (C) No. 164/2006 in C.A. No. 6607/2005
Decided on 20-11-2006
Counsel for the Parties :
For the Appellant : Harish N. Salve, Sr. Advocate, V.N. Koura, Rakesh Sawhney, Ms. A. Mariarputham, Ms. Paramjit Benipal and Ms. Aruna Mathur (for M/s. Arputham, Aruna & Co.) Advocates.
For the Respondent : P.H. Parekh, Sameer Parekh, Ms. Sonali Basu Parekh Shalin Mehta and Rajiv Mishra (for P.H. Parekh & Co.) Advocates.
Held : Having regard to the nature of employment and the period during which these field workers are employed, it would create various difficulties if the seasonal workmen were to be treated at par with regular employees as directed by the learned Single Judge. It would be even more difficult for the appellant to adjust the workmen in permanent employment when the need for them was only seasonal. Admittedly, these workmen who are employed for field survey work are employed for about six months in a year between November and May. If at all they are to be regularized, the appellant will have to find work for them during the months when their services would otherwise have not been required. As pointed out by Mr. Salve, previously the appellant had monopolistic control over geological survey work for oil and natural gas but today the scene had changed and it is just another competitor along with others, notwithstanding the fact that they are a government company. The appellant is now required to compete with others in securing exploration work and can only recruit field workers as and when required. Even then the learned Tribunal found a via media in directing that the 153 workmen who had admittedly completed 240 days and had acquired a temporary status be regularized against vacancies as and when such vacancies became available.(Para 14)
We are of the view that the directions given by the learned Tribunal are reasonable and should be allowed to stand as against the directions given by the High Court, firstly to treat the said 153 workmen at par with the regular employees and thereafter to treat their services as having been notionally regularized from 1st May, 1999. We can, of course, add a few further safeguards in order to protect the interests of the said 153 workmen so that they are assured of employment as before.(Para 15)
We, accordingly, dispose of this appeal by setting aside the judgments and orders of both the learned Single Judge and the Division Bench of the High Court and restoring the judgment and order passed by the Tribunal. We, however, add that till such time as these 153 workmen are not absorbed against regular vacancies in the concerned category no recruitment from outside will be made by the appellant. Furthermore, even in matters of seasonal employment, the said 153 workmen or the numbers that remain after regularization from time to time, shall be first considered for employment before any other workmen are engaged for the same type of work in the field. The appellant should make a serious attempt to regularize the services of the workman concerned, in terms of the order passed by the Tribunal, as quickly as possible, but preferably within a period of two years from the date of this order.(Para 16)
JUDGMENT
Altamas Kabir, J.—When the application being I.A.No. 7/06 for revocation of the leave granted, filed by the respondent-union, was taken up for hearing, the appeal itself was taken up for disposal.
2. The Oil & Natural Gas Corporation Ltd. (hereinafter referred to as ‘the ONGC’ ) is a public sector undertaking constituted under the Oil & Natural Gas Commission Act to provide for production and sale of petroleum and petroleum products. In order to achieve these objects, the ONGC carries out geological and geophysical surveys for the exploration of petroleum. Such work of survey is seasonal and is confined to the period between November each year and April or May of the following year. The workload is far less during the monsoon period and is generally referred to as the off season. Every year when such survey work or field season begins, the ONGC starts recruiting casual/contingent/temporary workmen for specified periods and their service are terminated at the end of the field season. Such practice appears to have been continuing from the very inception of the ONGC in 1956. While in 1956, the ONGC had a staff strength of 450 employees, in course of time the number increased to about 25,000 employees by the year 1979. It has been stated that the strength of the labour force has increased even further since then.
3. In view of the aforesaid phenomenon relating to employment of seasonal workers, the Engineering Mazdoor Sangh on behalf of its members who had been recruited as such casual/contingent/temporary workmen, raised an industrial dispute in the form of a demand for regularization of such workmen. The dispute was ultimately referred by the Government of India to the Industrial Tribunal (Central) at Vadodra (hereinafter referred to as ‘the Tribunal’), being Reference (ITC) No.6/1991. The following issue was referred to the Tribunal for adjudication:-
“Whether the demand of Engineering Mazdoor Sangh, Vadodra that the employees employed in the ONGC, Western Region, Vadodra who have completed 240 days or more in the Commission as casual/contingent/temporary be regularized as permanent workman from the date of their engagement in ONGC, with other consequential benefits, is justified? If yes, to what reliefs the said workmen are entitled?”
4. While the reference was pending, the union filed a complaint under Section 33A of the Industrial Disputes Act, 1947 (hereinafter referred to as the ‘1947 Act’ ) being Complaint (ITC) No.5/1993 alleging that the ONGC had started giving work to contractors in preference to the casual/contingent/temporary workmen and had thus altered the terms of service of the workmen and committed breach of Section 33 of the 1947 Act. The said complaint was tried by the Tribunal and by its award dated 30th October, 1993, it held that it was not permissible for the Tribunal to examine whether the work of the ONGC was seasonal or not or whether the ONGC had breached the terms of service of the workmen by giving the work to contractors in preference to the casual/contingent/temporary workmen. By the said order, the ONGC was also directed to follow the principle of “last come first go” in case it wanted to terminate the services of the casual/temporary workmen on the ground that they had no work. In such case, the ONGC was required to obtain the prior permission of the Tribunal under Section 33 (1) (a) of the 1947 Act.
5. Consequent upon such order, the ONGC filed an application on 25th April, 1994 seeking permission to terminate the services of the casual/temporary workmen mentioned in the list enclosed with the application. Due notice of the application was served on the Engineering Mazdoor Sangh and after hearing both the sides, by order dated 30th May, 1994, the Tribunal directed the ONGC to terminate the services of casual/contingent/temporary workmen, except 189 out of 269 workmen who were indicated in the list filed by the union.
6. While considering the question as to who w
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