IMPORTANT POINTS
When parties are governed by a MOU providing for arbitration, High Court should not entertain writ petition.
Every person has to establish his case for regularization individually and independently.

JUDGMENT

Abhay Manohar Sapre, J.

1) Leave granted.

2) These appeals arise from the final judgment and order dated 05.01.2017 passed by the High Court of Judicature at Madras in W.A. No.1020 of 2016, W.A. No. 1351/2016 and W.A. No.1378 of 2016 whereby the Division Bench of the High Court while reversing/set aside the judgment of the Single Judge partly allowed the writ appeals and gave certain directions to the Port Trusts (appellants herein) for their compliance in favour of the writ petitioners (respondents herein).

3) In order to appreciate the issues involved in these appeals, it is necessary to set out the relevant facts hereinbelow.

4) There are two Port Trusts in Chennai. One is known as “Chennai Port Trust” and the other is known as “Ennore Port Trust”, now called “Kamarajar Port Trust”.

5) Chennai Port is one of the oldest ports in the country. Amongst several operational activities of loading, unloading, spillages and clearing of various kinds of the goods, which are undertaken regularly in the Port, one such activity that is operational on regular basis is handling of “Coal and Iron Ore”.

6) In order to carry out the loading, unloading, spillages and clearing the coal and iron ore from the Iron Ore Handling Plant set up in the Port Trust, the stakeholders need workers (class IV). Sizeable numbers of worker are, therefore, involved in doing this work on regular basis.

7) In 1987, these workers made a demand to regularize their services in the set up of the Port Trust. Since their demands were not acceded to, they (160 or so) filed a writ petition (W.P. No.9011 of 1987) in the High Court at Madras seeking therein a relief of regularization of their services in the set up of Chennai Port Trust.

8) The Chennai Port Trust contested the writ petition and contended that it is not possible to regularize the services of these workers (writ petitioners) for various reasons in their set up. It was contended that these workers are not the employees of the Port Trust and nor there exists any relationship of employer and employee between them. It was also contended that it is the contractor, who engages these workers, and hence they are the employees of the Contractor but not Port Trust.

9) During pendency of the writ petition, these workers (writ petitioners) formed one association called – “Madras Port Spillage Handling Workers Association” (hereinafter referred to as “the Association”) and got the Association registered as Society under the Society Registration Act.

10) The matter was then referred to arbitration which resulted in passing of an award dated 22.10.1994. The award was published in the Government of India Gazette on 24.12.1994. The award, inter alia, directed the parties to enter into a Memorandum of Understanding (MOU) for settlement of the disputes. Accordingly, the Association and the Chennai Port Trust entered into a MOU on 02.05.1995. (Annexure-P-1)

11) Clause 1 of MOU provides that subject to Association following the terms and conditions of MOU, the Port Trust has agreed to give work of loading /unloading/spillage/cleaning to the members of the Association. Clause 2 of the MOU provides that membership of Association will not exceed the number of 160 and the membership of Association will be given only to those persons, who are declared physically fit with the approval of the Chairman. Clause 2 further provides that preference would be given to dependants of those who had been employed and died or became physically unfit, their dependents would be made member of the Association subject to dependant concerned declared fit by the Medical Board and whose membership is approved by the Chairman. Clause 3 deals with allocation of work to male/female members. Clause 4 further provides that member will be discontinued from the work on attaining the age of 58 and in the absence of any proof of age, the certification issued by the Medical Board of his/her age would be final. Clause 5 provides that, if any member is found