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2011 Supreme(Bom) 392

2011(4) ALLMR 384
In the High Court of Bombay at Aurangabad
THE HONOURABLE MR. JUSTICE B.P. DHARMADHIKARI
Shrirampur Municipal Council
Versus
Shri V.K. Barde & Others
WRIT PETITION NO. 3238 OF 1992 (Aurangabad) (i.e. WRIT PETITION NO. 3348 OF 1988 (Bombay)) WITH WRIT PETITION NO. 1017 OF 1995
Decided on: 31-03-2011

Advocates Appeared:
For the Petitioner:V.S. Bedre, Advocate.
For the Respondents:R1, formal party, R2, S.K. Shelke, R3, D.D. Pokharkar, Advocates, R4 & R5, Mrs. V.A. Shinde, Assistant Government Pleader.

Headnote:Maharashtra Municipal Councils, Nagar Panchayats and Industrial Township Act, 1965 - Section 76-Industrial Disputes Act, 1947, Schedule III, Item 7-Jurisdiction of Industrial Court-Creation of new posts-Grant of permanency to daily wagers-198 daily wagers directed to be absorbed on permanent basis by Industrial Court-No vacancy was available-Prior approval of under Section 7 of Act not insisted upon-A blanket direction of grant of permanency unconstitutional-Impugned direction not sustainable-Set aside.-Merely because daily wagers are being employed in public employment like present one, it may not warrant additional posts in all cases. Not only this, when salary is to come from public exchequer, ability to bear this extra burden either in full or in part, also assumes significance. The Government may even if satisfied with additional workload, due to other constraints may not grant approval to creation of any post or some posts. The task essentially consists of a decision on executive side. Admittedly, the State Government is releasing grants for paying DA to workmen within sanctioned strength and also for various municipal developments. What expenditure should be viewed as on establishment and when it should be treated as for development work or towards rendering service is therefore within province of State, provided it applies those accounting norms on uniform basis. Industrial Court has not recorded a finding that the said treatment in present case is contrary to such norms or discriminatory. Opinion of Industrial Court then expenditure on wages of field staff cannot be accepted as establishment expenditure is therefore unsustainable. Similarly when Municipal Council is required to pay less amount as daily wage, finding that after grant of permanency, it will start receiving 85% grants towards DA and its burden gets reduced is erroneous. Municipal Council has to release more amount towards basic salary as also pay other allowances to such incumbent. It also has to shoulder 15% of the DA. The conclusion that as workmen on daily wage already working are being given permanency, there is no new recruitment or creation of new posts is equally unsustainable. Without verifying the mode and manner in which these 198 workmen got the work and their eligibility for the same, a blanket direction for grant of permanency to one and all is unconstitutional.

Judgment :

ORAL JUDGMENT:

1. Petitioner before this Court in both the matters is a local body constituted under the Maharashtra Municipal Councils, Nagar Panchayats & Industrial Townships Act, 1965 (hereinafter referred to as 1965 Act) while the Trade Union of its workmen are the respondents. Basic challenge in the 1992 petition filed under Art. 226 of the Constitution of India is to award-II dated 8/10/1987 delivered by Industrial Tribunal, Ahmadnagar in Ref.(IT) 6 of 1984 with prayer to quash relief granted in relation to demand 1,2 & 4.The reference was made by State of Maharashtra under S.12(5) of the Industrial Disputes Act,1947 i.e. IDA hereafter. Demand no. 1 is about increase in sanctioned posts on establishment schedule of the Petitioner. Demand no. 2 is to grant permanency to all those who have put in more than 180 days work with consequential benefits like pay-scales, D.A.etc & to continue to confer permanency in future on all workmen completing that period. By demand no. 4 the Union sought wages per day calculated by dividing the salaried of permanent staff by 26 ie at 1/26 by invoking the concept of equal pay for equal work.

2. In W.P. 1017/1995, the employer Municipal Council has assailed the interim order passed on 23/1/1995 under provisions of S. 30(2) of the Maharashtra Recognition Of Trade Unions & Prevention Of Unfair Labour Practices Act, 1971-- stated as ULP Act hereafter. By that order, the Industrial Court at Ahmadnagar has directed to pay wages to 108 workmen in schedules A,B & C appended to Complt. ULP 391 of 1994 filed before it by following the principle of equal pay for equal work at 1/26th of the permanent workmen. Main complaint is under section 28(1) read with items 5,9 & 10 of schedule IV of the ULP Act.

3. W.P. 3238 of 1992 is filed at principal bench of this Court where it was registered as WP 3348 of 1988. On 30-11-1988, the Division Bench of this Court noted that grant of permanency by Petitioner in obedience to the orders of Labour Court did not constitute violation of any government circular or decision or direction. Respondent State government was given time to controvert this legal position which appeared to be "fairly clear" to the division bench. Bench also noted that out of 198 workmen covered by the decision of labour court, about 110 were already given permanency from 4/6/1988 on their giving up the claims for period prior to it. It appears that on 7/12/1988 the division bench admitted the petition only on prayer "(aa)" which sought direction to state government to sanction additional posts as per impugned award & to take them on establishment schedule. Rule on other prayers was rejected by saying--"Not granted, regarding other prayers". On 12/10/1992, matter came to be transferred to this bench. On 26/8/1994, petition was allowed to be amended. It was thereafter found in October or November,2003 that surviving subject matter pertained to domain of the division bench. Division Bench vide judgment dated 12/12/2003 disposed of the petition by directing petitioner to regularise remaining workmen from 1/9/1988 with all consequential benefits like permanent workmen. A direction to pay difference in minimum wage & actual payment to others not regularised for the period from 4/6/1980 till 31/8/1988 was also issued. Retired workmen or legal representatives of deceased workmen were also declared entitled to these benefits. Their claims for compassionate employment were also directed to be disposed of according to policy governing it. Service rendered from 4/6/1980 was directed to be computed for all such purposes. Director of Municipal Administration & State Government were directed to dispose of proposal submitted by petitioner municipal council for creation of posts within 3 months.

4. Developments in WP 1017 of 1995 are not much different. By very first order dated 7/3/1995, this Court extended time to comply with the impugned interim directions of Industrial court "until further orders".






































































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