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2007 Supreme(SC) 42

SUPREME COURT OF INDIA
A.K. MATHUR AND ALTAMAS KABIR, JJ.
Civil Appeals Nos. 6195 - 98 of 2004
LAL MOHAMMAD AND OTHERS Appellants;
Versus
INDIAN RAILWAY CONSTRUCTION CO. LTD. AND OTHERS Respondents.

With
Civil Appeal No. 5685 of 2006
RAVINDRA NATH MISHRA Appellant;
Versus
INDIAN RAILWAY CONSTRUCTION CO. LTD. AND ANOTHER Respondents.
Civil Appeals Nos. 6195 - 98 of 2004 with No. 5685 of 2006
Decided on January 11,2007
Advocates appeared
Sudhir Chandra and P.P. Rao, Senior Advocates (Bharat Sangal, R.R. Kumar, S. Chatterji, Ms Suchitra Sharma, Bhagabati Prasad, Ms Manjula Gupta, Anil Kr. Jha, Ms Mukti Singh, Sunil Singh, Sumant Bhardwaj, S. Shekhar, N.A. Siddiqui, S. Dutta, Ms Mridula Ray Bhardwaj, Mahesh Pandey, S. Mishra, Purushottam ST., D.S. Chadha, Abhishek Kumar, Anshuman Ashok and D.N. Mishra, Advocates) for the appearing parties.

The petitioners are not entitled to be regularised in their services in the Company and they are only entitled to compensation as indicated above.

Headnote:

The Full Bench held that the petitioners are not entitled to benefit of continuation of service or regularisation as the project stood closed on 6 - 2 - 1998. The main issues were whether the Anpara - Rihand Nagar Project was subjected to a factual closure, whether the impugned notices were closure notices as per Section 25 - 0 read with Section 25 - FFF of the Act, whether the appellants were employed in the Project or were they employees of the respondent Company, and whether the impugned notices were violative of Articles 14, 16 and 21 of the Constitution of India. The court held that the petitioners were not entitled to be regularised in their services in the Company and they are only entitled to compensation as indicated above. The appeals and writ petitions filed by workers were dismissed.

Judgment

A.K. MATHUR, J. - These appeals are directed against the order passed by the Allahabad High Court dated 21 - 5 - 2004 whereby the Full Bench of the High Court has disposed of all the writ petitions filed by the workmen against Indian Railway Construction Co. Ltd. (hereinafter referred to as "the Company") and the Regional Manager, IRCON, Rihand Nagar, Sonebhadra. The Full Bench held that the petitioners are not entitled to benefit of continuation of service or regularisation as the project stood closed on 6 - 2 - 1998. It was held that project stood completed in all respects except necessary electric or other odd works left over. It was also held that the petitioners did not apply for recruitment in service of the Company as per the service rules and those who appeared and were found suitable were selected and appointed under the service rules of the Company but others who could not appear, their services were terminated in accordance with law. Hence, in total analysis, it was held that sentiments must yield to the cold logic of law, however hard the case may be. Hence all writ petitions were dismissed.

2. It would be necessary to recapitulate the facts giving rise to these appeals because this is the second and third innings of the matter, which has come up before this Court. Earlier the matter came up before this Court wherein the question that arose was whether Section 25 - N of the Industrial Disputes Act, 1947 (hereinafter referred to as "the Act") was complied with or not, this Court held that Section 25 - N was not complied with. Hence, this Court disposed of the petitions holding that Section 25 - N was not complied with, therefore, termination of all workmen was bad and remitted the matter (Lat Mohd. v. Indian Rly. Construction Co. Ltd.l) back to the High Court with the following directions: (SCC pp. 624 - 25, para 28)

"28. In view of the aforesaid discussion and in the light of our finding that Chapter V - B applies to the respondents Anpara - Rihand Project, in the remanded proceedings in the restored writ petitions of the present 25 appellants, the following questions would squarely arise for consideration of the High Court:

(i) whether the Anpara - Rihand Nagar Project is subjected to a factual closure as mentioned in the impugned notices of March 1998 or whether the Project is not still completed;

(ii) in the light of the answer to the aforesaid question, a further question would arise whether the impugned notices of March 1998 were in fact and in law closure notices as per Section 25 - 0 read with Section 25 - FFF of the Act or whether they still remain retrenchment notices and hence would be violative of Section 25 - N of the Act;

(iii) even if it is held that the Anpara - Rihand Nagar Project is in fact closed down, whether the 25 appellants were employed in the Project or were they employees of the respondent Company entitling a them to be absorbed in any other project of the Company and consequently whether the impugned notices have not effected any snapping of the employer - employee relationship between the appellants on the one hand and the respondent Company on the other;

(iv) even apart from the aforesaid questions, whether the b impugned notices are violative of the guarantee of Articles 14, 16 and 21 of the Constitution of India on the ground that the termination of services of the 25 appellants was arbitrary and discriminatory, the respondent Company being a State within the meaning of Article 12 of the Constitution of India."

3. Salient facts, which are necessary for disposal of these appeals are:

Twenty - five petitioners filed writ petition against the respondent Company, which is a construction company wholly owned by the Government of India. It carries out various construction projects throughout the country and abroad. These writ petitioner workmen were employed by respondent Company and Respondent 2 is its Regional Manager who was monitoring a project of construction of a railway line
































































































































































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