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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
North Delhi Municipal Corporation - Appellant
Versus
Anita Rani - Respondent
W.P.(C) 5332 of 2020 & CM Appls. 19254 of 2020 and 19255 of 2020 with W.P.(C) 5334 of 2020 & CM Appls. 19259 of 2020, 19260 of 2020 and W.P.(C) 5335 of 2020 & CM Appls. 19261 of 2020, 19262 of 2020
Decided On : 08-09-2020




The court mandates independent scrutiny of policy changes impacting employee regularization and back wages, focusing on procedural fairness and financial implications.

Headnote:(A) Industrial Disputes Act, 1947 - Regularization of employees - Impugned awards dated 15th February, 2019, directed payment of past wages and regularization of employees - Corporation contended that regularization was initially done notionally and later modified - Circular dated 11th December, 2019 reinstated the notion of 'notional' regularization, necessitating remand to CGIT for reassessment - Matters involving significant financial implications for the Corporation and numerous similar cases under consideration. (Paras 3, 4, 9)

(B) Procedural fairness - Court directed that an independent senior official assess the policy changes regarding regularization and recruitment processes related to closely related employees and report on financial impacts and compliance across municipal corporations. (Paras 9, 10)

Facts of the case:
The case involves three petitions concerning the regularization and back wages of employees of the North Delhi Municipal Corporation, with relevant past actions having financial implications extending to a large number of similarly situated employees.

Findings of Court:
The Court emphasized the necessity of a detailed report to ascertain fairness in the regularization process, examining both the procedural changes and financial consequences to the Corporation.

Issues: The Court addressed the justification for the change in policy regarding regularization and the processes followed in hiring related employees.

Ratio Decidendi: The decision acknowledges the need for oversight in changing policy directions that affect employee rights, highlighting procedural and financial ramifications for the Corporation and its employees.

Result: The matter remanded to an independent authority for thorough examination.

Table of Content
1. impact of circulars on regularization rights (Para 3 , 4)
2. need for detailed examination of policy changes (Para 5 , 9)
3. scheduled next steps and interim orders (Para 10 , 11)

JUDGMENT

Prathiba M. Singh, J. (Oral)--The hearing has been held through video conferencing.

2. Mr. Madhu Sudan Bhayana, ld. counsel appearing in W.P.(C) 5334/2020 and Mr. Ajay Kumar Pandey, ld. counsel appearing in W.P.(C) 5332/2020, both submit that these matters pertain to the Central Labour Commissioner and hence the Central Government would be representing in this matter. Accordingly, both the said counsels are discharged. Mr. Shubham Gupta, ld. counsel appearing for GNCTD, is also discharged from this matter. Mr. Vivek Goyal, ld. CGSC is appearing for the Central Labour Commissioner.

3. These three petitions arise out of the impugned awards dated 15th February, 2019, by which the services of all the employees have been regularized and past wages have been directed to be paid. The case of the North Delhi Municipal Corporation (hereinafter `Corporation') is that initially, the regularization was only notionally done, as per the office order dated 2nd June, 2014 and hence none of the employees were entitled to back wages. However, thereafter, the word `notionally' was removed, vide a circular dated 5th March, 2015, leading to the passing of the impugned awards.

4. Post the passing of the impugned awards, the Corporation has again issued a circular dated 11th December, 2019, by which the word `notionally' was incorporated once again. According to the Corporation, the matter needs to be remanded back to the Central Government Industrial Tribunal (hereinafter `CGIT') for reconsideration owing to the circular dated 11th December, 2019. In effect the argument is that in view of this latest circular, the workmen are not entitled to regularisation and back wages.

5. Vide order dated 18th August, 2020, the Corporation was directed to file an affidavit as to the chronology of events leading to such a circular being issued, after the order having been passed by the CGIT. An affidavit dated 3rd September, 2020 has been placed on record which is filed by Mr. Gopal, Additional Deputy Commissioner, DEMS(HQ), North Delhi Municipal Corporation. In the said affidavit, it has been explained that in view of the large number of employees who were getting the benefit and the consequent monetary impact upon the Corporation being several crores of rupees, the Corporation took a policy decision and issued the circular dated 11th December, 2019.

6. On the last date i.e. 18th August, 2020, it was noticed by this Court that all the three employees were being represented by one single authorized signatory, Mr. Abhinav Kumar, who is a practising lawyer. The employees were therefore directed to appear before this Court today, as also the authorized signatory. Upon interacting with the authorized signatory, it seems that he has been appointed as the authorized signatory since 2016-17 and was earlier stated to be with the Municipal Employees Union.

7. All the three employees, namely, Ms. Anita Rani, Mr. Sudesh Kumar and Ms. Nirmala are present in the hearing via video conferencing. Ms. Anita Rani is stated to be married to Mr. Rajesh Kumar Tank who is a Sanitary Inspector in the Corporation. She joined the services of the Corporation in 1997 as a Safai Karamchari and is presently serving in the Mangolpuri area. Ms. Nirmala is married to Mr. Rakesh Kumar Tank, the brother of Mr. Rajesh Kumar Tank. She is also serving in the Corporation as a Safai Karamchari and she is also presently serving in the Mangolpuri area. Mr. Sudesh Kumar submits that he has been working with the Corporation since 1996 and is presently posted in Mangolpuri. He further states that he was referred to the authorised signatory by Mr. Rajesh Kumar Tank who he refers to as `Baoji'. The husbands of Ms. Anita Rani and Ms. Nirmala are both brothers.

8. Mr. Gopal, Deputy Commissioner,

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