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1989 Supreme(Del) 17

High Court Of Delhi
SURESH KUMAR - Appellant
Versus
UNION OF INDIA - Respondent
Civil Writ 3442 of 1987
Decided On : 01/13/1989

Advocates Appeared:
A.K.SINHA, D.D.THAKUR, RAJESH SHARMA

Daily wage employees who work for more than 240 days in a year in an industry are entitled to be regularised as employees.

Headnote:

REGULARISATION OF DAILY WAGE EMPLOYEES - CENTRAL RESEARCH INSTITUTE FOR YOGA - EMPLOYEES WORKING MORE THAN 240 DAYS IN A YEAR - ENTITLED TO REGULARISATION - INSTITUTE IS AN INDUSTRY AND A STATE WITHIN THE MEANING OF ARTICLE 12 OF THE CONSTITUTION - WRIT PETITION ALLOWED - ORDERS TERMINATING SERVICES QUASHED - MANDAMUS ISSUED DIRECTING REGULARISATION AND PAYMENT OF BACK WAGES.

Fact of the Case:

Petitioners, daily wage employees of the Central Research Institute for Yoga (respondent No. 2), challenged the Institute's action of not absorbing them into regular service. They had worked for over 750 days prior to their termination of service on 11/12/1987.

Finding of the Court:

The Court held that the Institute was an industry and a State within the meaning of Article 12 of the Constitution. The petitioners, having worked more than 240 days in a year, were entitled to be treated as regular employees of the Institute. The Court also found that the Institute's action in terminating the petitioners' services on the same day it was served with an interim order from the Court was vindictive and arbitrary.

Issues: 1. Whether the Central Research Institute for Yoga is an industry? 2. Whether the Institute is a State within the meaning of Article 12 of the Constitution? 3. Whether the petitioners are entitled to be regularised as employees of the Institute?

Ratio Decidendi: 1. The Court held that the Institute was an industry, as it carried out a systematic activity and its employees were not working voluntarily. The absence of profit motive was irrelevant. 2. The Court held that the Institute was a State within the meaning of Article 12 of the Constitution, as it was under the general supervision of the Union Ministry of Health and Family Welfare, received entire financial support from the Central Government, and was located in Government premises. 3. The Court held that the petitioners were entitled to be regularised as employees of the Institute, as they had worked for more than 240 days in a year.

Final Decision: The Court allowed the writ petition, quashed the orders terminating the petitioners' services, and issued a writ of mandamus directing the Institute to regard the petitioners as regular employees and pay them full back wages and allowances. The Institute was also directed to reinstate the petitioners forthwith and pay them the arrears of salary and allowances within two months.

B. N. Kirpal, J.

( 1 ) THE petitioners were working in the Central Researchinstitute for Yoga (respondent No. 2) and have challenged in this writ petitionthe action of the said Institute in not absorbing them inregular service.

( 2 ) BRIEFLY stated the facts are that petitioner No. 1 was appointed on 8/04/1981 as an Attendant by respondent No. 2 on daily wages w. e. f. 2/04/1981. Petitioner No. 2 was appointed as a Sweeper vide order dated 29/10/1984 by the said Institute on daily wages. Similarly, petitionerno. 3 was appninted on 19/01/1982 on daily wages as a Peon by thesaid Institute. It is the case of the petitioners, and this is not denied by therespondents, that the petitioners continued to work on daily wages till theirservices were ultimately terminated on 11/12/1987 after the filing ofthe present writ petition.

( 3 ) AT the time when the petition was filed the grievance of. the petitioners was that the respondent-Institute advertised in the newspaper on 1/02/1987 a number of posts, including the posts of Poens and Sweeper. It appears that interview letters were issued, but one of the petitioners was. not even called for interview. The interviews were to be held on 7/12/1987. The case of the petitioners is that the respondent-Institute is a state within the meaning of Article 12 of the Constitution, and as the petitionershave put in more than 240 days of work in a year, they are liable to be asborbed in regular service in view of the numerous decisions of the Supreme Court.

( 4 ) ON 8th December, -A 987 this Court issued notice to the respondentsto show cause why the petition be not admitted. Notice was also issued in theinterim application and it was ordered that any appointments that may bemade from outside would be subject to further orders of the Court. Copy ofthe order is stated to have been served on respondent No. 2 on- 11/12/1987. Thereafter, on that very day, i. e. on 11/12/1987 the responddent No. 2 issued three similar office orders to the effect that the services ofthe petitioners were no longer required w. e. f. 11/12/1987. Thereafter another application for stay was filed, and it was directed by this Courtwhile admitting the writ petition, that any appointments which are made fromoutside will be subject to the orders of this Court. Counsel for the petitionersinforms me that after the services of the petitioners were terminated fivepersons have been appointed to the posts of Peons and Sweepers.

( 5 ) IN the affidavit. filed in reply it has been, inter alia contendedthat the respondent-Institute is not a State. It has also been submitted thatthe Institute is not an industry and in any case this Court should not exerciseits jurisdiction under Article 226 of the Constitution and if it be held that theinstitute is an industry, then the petitioners should be asked to take recourseto the provisions of the Industrial Disputes Act.

( 6 ) IT is now well settled, and it has not been disputed by the learnedcounsel for the respondents, that a daily wager who works for more than 240days in a year in an industry has to be regarded as having been regularlyappointed. " The services of such an employee is liable to be regularised andin this connection, the following decisions of the Supreme Court may benoticed: J. T. I 987 (4) SC 164-U. P. Income-tax Department Contingent Paidstaff Welfare Association v. Union of India and Others, U. P. Income-taxdepartment Contingent Paid Staff Welfare Association v. Union of India andothers [j. T. 1987 (4) SC. 585]; Delhi Municipal Karamchari Ekta Unionv. Shri P. L. Singh and Others (J. T. 1987 S. C. 617); The General Secretary,bihar State Road Transport Corporation, Patna v. The Presiding Officer,industrial Tribunal, Patna and Others (J. T. 1988 (1) S. C. 29); and Businesscombine Limited v. M. B. Jagtap and Others (J. T. 1988 (1) S. C. 30 ). In allthese cases it was held by the Supreme Court that when an employeehas served for a number of years without break, the person was entitled to








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