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IN THE HIGH COURT OF DELHI
Gaurang Kanth, J.
Food Corporation of India - Appellant
Versus
Govt. of India - Respondent
W.P.(C) 2084 of 1988
Decided On : 12-12-2022




Assistant Managers of Food Corporation, due to managerial roles and exceeding salary, are not considered 'workmen' under the Industrial Disputes Act, impacting their entitlement to selection grades.

Headnote:(A) Industrial Disputes Act, 1947 - Section 2(s) - Nature of employment - Classification of employees - Assistant Managers in the Food Corporation of India were determined not to be 'workmen' under the Act, primarily due to their managerial responsibilities and salary exceeding statutory limits. The learned Labour Court's direction regarding selection grade was set aside as the employees in question did not meet the criteria outlined in the Act. (Paras 58-58)

(B) Jurisdiction - Judicial Review - The scope of the High Court's jurisdiction is to determine jurisdictional issues raised by Labour Court findings, as opposed to simply reviewing factual conclusions. (Paras 56)

Facts of the case:
The writ petition originated from a judgment of an industrial tribunal regarding disputes over allowances and the classification of employees as workmen. The Petitioner appealed against the tribunal's order to introduce selection grades for managers and certain allowances retroactively. (Paras 1, 4, 6)

Findings of Court:
The Court found that Assistant Managers held managerial roles, hence were excluded from the definition of 'workmen' under Section 2(s) of the I.D. Act, ruling against the Labour Court's earlier decisions. (Paras 58)

Issues: Whether Assistant Managers in FCI are classified as 'workmen' under the I.D. Act and their entitlements to selection grades and allowances. (Paras 6, 58)

Ratio Decidendi: The Court ruled that due to their managerial duties and higher salaries, the category of Assistant Managers is not covered under the definition of 'workman', which influenced the decision on their employment benefits. (Paras 58)

Result: Writ petition allowed. Directions of the Labour Court regarding the introduction of selection grade set aside.

Table of Content
1. judgment background and procedural history (Para 1 , 2)
2. disputes referred to and resolved by labour court (Para 4 , 5 , 14)
3. key issue of assistant managers as workmen (Para 6)
4. initial demands and procedural developments (Para 8 , 9 , 10)
5. court's analysis of employment status under i.d. act (Para 36 , 37)
6. final ruling on managerial capacity and implications (Para 44 , 50 , 58)

JUDGMENT

Gaurang Kanth, J.

1. The present Writ Petition emanates from the judgment dated 10.05.1988 ("Impugned Award") passed by Respondent No. 2, the Presiding Officer, Central Government, Industrial Tribunal, New Delhi, in I.D. No. 138 of 1980 titled as Workmen through the General Secretary, Employees Union v. The Managing Director, Food Corporation of India.

2. In this matter, the learned Labour Court passed the impugned Award more than 3 decades back. Earlier vide Judgment dated 05.08.2011, this Court dismissed the present writ petition. Thereafter, the Petitioner challenged the said Judgment dated 05.08.2011 before the Hon'ble Division Bench. Vide order dated 16.07.2015 in LPA No. 697/2012, the Hon'ble Division Bench set aside the said Judgment of this Court and remanded the matter back to this Court for fresh adjudication. The Respondent/Union challenged the said Order of the Hon'ble Division Bench before the Hon'ble Supreme Court in SLP (C) No. 30357/2015. The Hon'ble Supreme court vide order dated 17.04.2017 disposed of the said SLP by upholding the decision of the Hon'ble Division Bench in LPA No. 697/2012 and directing the Petitioner to pay a cost of Rs.50,000/- to the Respondent/Union.

3. During the pendency of the present writ Petition, the parties themselves resolved most of the issues. Hence, in the outset itself, this Court deems it appropriate to examine the directions of the learned Labour Court and the present status of the said directions.

4. The Central Government referred four disputes to the learned Labour Court for adjudication. Learned Labour Court, vide the Impugned Award, decided three out of four disputes in favour of Respondent No.3/Workmen. Those three disputes are: (i) payment of night allowance to Chowkidar and other staff employed at night; (ii) introduction of selection grade for category II, III and IV employees; and (iii) payment of arrears of House Rent Allowance on revised scales from 01.11.1973.

5. The Petitioner complied with the direction qua night allowance vide Circular No. 27/1988 (EP-17-3/88 vide 19.09.1988) and hence in the present Writ Petition, the Petitioner challenged only two directions, i.e, (a) introduction of selection grade for Category II, III and IV employees; and (b) payment of arrears of House Rent Allowance on revised scales from 01.11.1973. The current status of these directions, as borne out from the record, are as follows:

(i) Introduction of selection grade for category II, III and IV employees

Learned Labour Court vide impugned Award dated 10.05.1988, directed the Petitioner for the grant of selection grade to Category II, III and IV employees w.e.f. 01.11.1971.

The Petitioner in the Rejoinder pointed out that this issue stands settled between the parties. Four major staff unions, including the Respondent Union had signed the settlement agreement with the Petitioner Management under Section 2(P) & 18(1) of the Industrial Disputes Act, 1947 ("I.D. Act") on 06.11.1992 for the grant of selection grade to Category III & IV employees. As per the said settlement, the Petitioner Management introduced the selection Grade Scheme to Category III & IV w.e.f. 01.12.1987. Circular No.22 of 1992 dated 30.12.1992 to this effect is placed on record by the Petitioner along with the Rejoinder. Hence, this issue stands settled between the parties.

Regarding Selection Grade to Category-II employees, the Petitioner Management introduced the scheme for the grant of Selection Grade to Assistant Managers, now Managers w.e.f. 13.08.2001 onwards vide circular No. WRC/3/2/2000 date

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