2015 Supreme(SC) 780

SUPREME COURT OF INDIA
VIKRAMAJIT SEN, PRAFULLA C. PANT, JJ.
MOHAN SINGH & ORS. – APPELLANTS
VERSUS
THE CHAIRMAN RAILWAY BOARD & ORS. – RESPONDENTS
CIVIL APPEAL Nos. 5874-5875 OF 2015 (ARISING OUT OF S.L.P. (C) NOS. 1624-25 OF 2014)
Decided On : 03-08-2015

IMPORTANT POINTS
DRM in control of the affairs of the Moradabad Division is the occupier of that Division.
Being occupier, it is obligatory upon DRM, Moradabad to maintain a statutory canteen so long as the staff strength exceeds two-hundred and fifty.
DRM Office of Moradabad Division along with all the appurtenant lands, yards, etc. are ‘premises’ where manufacturing processes such as repairing and maintenance works are carried out is factory.
Premises of DRM office Moradabad being factory the subject canteen corresponded to a ‘Statutory Canteen’. The staff would be treated as Railway servants and therefore entitled to regularisation.

Headnote:(a) Labour law – Canteen staff – Recognised Canteen – Subject Canteen running since 1940 within the precincts of the office of the DRM under his direct control and supervision – Joining and leaving the canteen staff always sanctioned and regulated by Assistant Personnel Officer, Northern Railways who also fixed prices of the food items as well as salaries of the staff – Even renovation of the Canteen carried out at directions and cost of Northern Railways – Uniforms, medical aid, free travelling passes, residential accommodations, privileged ticket orders etc. for the canteen staff provided by the Railways – Proposal for approval of the Canteen having been rejected, it is not a recognised canteen. (Para 6)

       (b) Factories Act, 1948 – Section 2(n) – Occupier – DRM in control of the affairs of Moradabad Division – He is the occupier of that Division. (Para 9, 10)

       (c) Factories Act, 1948 – Section 46 – Obligatory upon DRM, Moradabad to maintain a statutory canteen so long as the staff strength exceeds two-hundred and fifty. (Para 12)

       (d) Factories Act, 1948 – Section 2(m) – Factory – Moradabad Division, whether factory – The Division repairing and maintaining railway wagons, faulty signals, sanitation systems, loading and unloading of goods, supply of power continuously for railway tracks, railway station etc. – Division carrying on manufacturing process – DRM Office of Moradabad Division along with all the appurtenant lands, yards, etc. are ‘premises’ and therefore factory. (Para 15, 16)

       (2000) 5 SCC 646; AIR 1962 SC 29 – Relied upon

       (e) Factories Act, 1948 – Section 46 – DRM premises held factory – Subject canteen ipso facto corresponded to a ‘Statutory Canteen’ – The staff would be treated as Railway servants – Their regularisation directed. (Para 16, 18)

       (1990) Supp SCC 191; AIR 2006 SC 1806 – Relied upon

       Facts of the case:

       The Appellants are employed in the subject Canteen, which has been running within the precincts of the Divisional Railway Manager Moradabad since 1940.

       In 1963, the Respondent No. 1, namely the Chairman, Railway Board, issued a Circular for setting up of canteens as a welfare measure, whenever and wherever the staff strength exceeds 100. The existing Staff Canteen, i.e. the subject Canteen continued to operate smoothly, even thereafter. Subsequently, Respondent No.1 issued Circular in 1987 laying down that prior approval of the Railway Board would be mandatory for setting up of a new canteen as well as for increasing the staff strength of existing canteens. The Appellants assert that the mandate laid down in the Circular of 1987 was not applicable to the subject Canteen as it was validly operational since 1940, and was also in consonance with the Circular of 1963.

       Thereafter on 19.09.1996, Respondent No. 2, the General Manager of Northern Railways wrote a letter to the Railway Board requesting it to accord recognition to the subject Canteen in the interest of the welfare of the employees. However, vide Order dated 9.09.2002, the Ministry of Railways rejected this request.

       The Appellants filed a writ petition before the Delhi High Court, seeking directions to the Railways to recognize the subject Canteen and regularize the services of the PS, who were the then Canteen staff, as employees of Railways.

       The Single Judge allowed the Writ.

       The Division Bench reversed the decision of the learned Single Judge.

       Finding of the Court:

       The Single Judge of the High Court was correct in his view.

       Result: Appeal allowed.