SUPREME COURT OF INDIA
S.B. SINHA AND P.K. BALASVBRAMANYAN, JJ.
U.P. STATE BRASSWARE CORPN. LTD. AND ANOTHER - Appellants
Versus
UDAY NARAIN PANDEY - Respondent.
Civil Appeal No. 7304 of 2005
Decided on December 8, 200S
Advocates appeared
Ms Rachana Srivastava, Advocate, for the Appellants;
Bharat Sangal, Ms Sangeeta Panicker, R.R. Kumar and Samyadip ehatterji, Advocates, for the Respondent.
Back Wages - Industrial Disputes - U.P. Industrial Disputes Act, 1947, Section 6-N, Section 25-F of the Industrial Disputes Act, 1947 - The court discussed the provisions of Section 6-N of the U.P. Industrial Disputes Act and Section 25-F of the Industrial Disputes Act, 1947, and their application in the case. The court highlighted the interpretation of the legal provisions and their influence on the decision.
Fact of the Case:
The respondent was appointed on a project and later in a non-ferrous rolling mill. His services were terminated, leading to an industrial dispute. The Labour Court directed reinstatement and payment of back wages, which was upheld by the High Court. The appellant contended that the respondent was not entitled to back wages as he did not work continuously for 240 days and his appointment was contractual for a fixed tenure.
Finding of the Court:
The court found that the respondent had worked for more than 240 days in each year and was entitled to back wages. The court also considered the closure of the establishment and the implementation of a government order, and limited the back wages to 25% of the total amount payable for the period.
Issues: The issues included the entitlement to back wages under Section 6-N of the U.P. Industrial Disputes Act, the nature of the respondent's appointment, and the impact of the closure of the establishment on the payment of back wages.
Ratio Decidendi: The court held that the respondent was entitled to back wages for the period of his termination, limited to 25% of the total amount payable, considering the closure of the establishment and the implementation of a government order.
Final Decision: The appeal was allowed in part, and the respondent was granted 25% of the total back wages payable for the period of his termination, along with compensation in terms of Section 6-N of the U.P. Industrial Disputes Act. No costs were awarded.
Judgment
S.B. SINHA, J. - Leave granted.
2. Whether direction to pay back wages consequent upon a declaration that a workman has been retrenched in violation of the provisions of Section 6 - N of the U.P. Industrial Disputes Act, 1947 (equivalent to Section 25 - F of the Industrial Disputes Act, 1947) as a rule is in question in this appeal which arises out of a judgment and order dated 6 - 2 - 2004 passed by a Division Bench of the High Court of Judicature at Allahabad in Civil Misc. Writ Petition No. 23890 of 1992 dismissing the appeal preferred by the appellant herein arising out of a judgment and order dated 8 - 7 - 1992.
3. The appellant is an undertaking of the State of Uttar Pradesh. The respondent herein was appointed on 23 - 7 - 1984 in a project known as Project Peetal Basti by the appellant for looking after the construction of building, cement loading and unloading. He worked in the said project from 23 - 7 - 1984 till 8 - 1 - 1987. He was thereafter appointed in non - ferrous rolling mill. By an order dated 12113 - 2 - 1987, the competent authority of the non - ferrous mill of the appellant passed the following order:
"Following two persons are hereby accorded approval for appointment in non - ferrous rolling mill on minimum daily wages for the period w.e.f. date indicated against their name till 31 - 3 - 1987:
Sl. No. Name Date
1.Shri Hori Lal 7 - 1 - 1987
2.Shri Uday Narain 8 - 1 - 1987"
Pandey
4. The services of the respondent were terminated on the expiry of his tenure. An industrial dispute having been raised, the appropriate Government by an order dated 14 - 9 - 1998 referred the following dispute for adjudication . by the Presiding Officer, Labour Court, Uttar Pradesh:
"Whether the employers decision to terminate the workman Shri Vday Narain, son of Pateshwari Pandey w.e.f. 1 - 4 - 1987 was illegal and improper? If yes, whether the workman concerned is entitled to the a benefit of retrenchment and other benefit?"
5. The Project Officer of the appellant Corporation appears to have granted a certificate showing the number of days on which the respondent performed his duties.
6. The Labour Court in its award dated 31 - 10 - 1991 came to the finding that the respondent worked for more than 240 days in each year of 1985 - 86. b It was directed:
"Therefore, I reached the decision that the employer should reinstate the workman concerned Vday Narain Pandey, son of Shri Pateshwari Pandey w.e.f. the date of retrenchment i.e. 1 - 4 - 1987 and he should be paid the entire back wages with any other allowances w.e.f. the same date within 30 days from the date of this order together with Rs 50 towards C cost of litigation to Shri Vday Narain Pandey. I decide accordingly in this industrial dispute."
7. The appellant herein filed a writ petition before the Allahabad High Court in May 1992 which was marked as Civil Misc. Writ Petition No. 23890 of 1992 inter alia contending that as the respondent had not rendered service d continuously for a period of 240 days during the period of 12 calendar months immediately before his retrenchment uninterruptedly, he was not a workman within the meaning of Section 2(z) of the V.P. Industrial Disputes Act. It was further contended that the appointment of the respondent was on contractual basis for a fixed tenure which came to an end automatically as stipulated in the aforementioned order dated 12/13 - 2 - 1987.
8. An application was filed by the respondent herein under the Payment of Wages Act wherein an award was passed. The said order was also questioned by the appellant by filing a writ application before the High Court and by an order dated 12 - 8 - 1993, the High Court directed it to pay a sum of rupees ten thousand to the respondent. Pursuant to or in furtherance of the said order, the respondent is said to have been paid wages up to February f 1996. By reason of the impugned order dated 6 - 2 - 2004, the writ petition was dismissed, holding:
"Having heard the learned counsel for th
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