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2025 Supreme(Gau) 2020

THE GAUHATI HIGH COURT, (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
The Executive Director, NE Zone, FCI And Anr. - Petitioners
Versus
The Union Of India, Ministry Of Labour/Shram Mantralaya, rep. By Its Secretary, And Ors. – Respondents
WP(C) No.2429 of 2020, WP(C) No.2092 of 2021
Decided On : 02-12-2025

Advocates Appeared:
For the Petitioners:Mr B.K. Singh, Advocate
For the Respondents: Asstt. S.G.I., Mr. M. Sharmah, Mr H.K. Gogoi, Mr. B.C. Pathak, Mr. B. Pathak, Mr. R. Thadani, Mr. B. Hazarika.

The court established that failure to regularize long-serving casual workers constituted an unfair labor practice, violating their constitutional right to fair employment and necessitating recognition of their rights and entitlements under labor laws.

Headnote:(A) Industrial Disputes Act, 1947 - Section 10 - Payment of Bonus Act, 1965 - Petitioners include the Food Corporation of India and Workmen contesting an Award from Reference Case No.1/2018. FCI directed to pay bonus from 2003 and to continue payments until the Workmen are employed; Workmen's claim for regularization denied - Court emphasizes that unfair labor practices were not addressed correctly, undermining Article 16 of the Constitution - Findings acknowledge the long service of Workmen and their eligibility for regularization based on established precedents. (Paras 30-50)

(B) Fair Employment Practices - The Court ruled that the non-regularization raised issues of unfair labor practices, as the Workmen had continuously served and were entitled to protections under Section 25F of the Act of 1947. The FCI's failure to regularize constituted discrimination, especially against previously regularized colleagues, hence directed their regularization from the date of Government Reference. (Paras 36, 42-50)

Facts of the case:
The Workmen served as casual employees with the FCI from 1982-1984, asserting unfair discrimination in regularization despite lengthy service. Their case for entitlement of bonus under the Payment of Bonus Act was also argued, alongside prior awards confirming their status. (Paras 6-9, 18-19)

Findings of Court:
The Court held that the FCI's failure to recognize the entitlements of the Workmen, particularly the unfair labor practices, required corrective action; FCI must pay bonuses owed and regularize Workmen. (Paras 30, 36, 52)

Issues: The core issues addressed whether the entitlements to regularization were wrongfully denied and if the FCI breached labor laws regarding continuous service and bonus payments. (Paras 30-48)

Ratio Decidendi: The Court found the FCI did not adequately demonstrate that the Workmen did not fulfill the requirements for regularization, particularly in light of ongoing service; fairness in employment dictates the necessity of regularization to rectify historical grievances. Court reaffirmed the solidified jurisprudence surrounding employee rights to protection against unfair labor practices. (Paras 42-50)

Result: Both petitions disposed; FCI directed to regularize Workmen and pay outstanding bonuses.

Table of Content
1. writ petitions filed by both parties regarding the award. (Para 2 , 3 , 4 , 5)
2. details of casual workers' employment history. (Para 6 , 8 , 10)
3. previous awards regarding service and entitlement. (Para 11 , 15)
4. reference to industrial tribunal regarding regularization. (Para 20 , 21)
5. arguments from workmen regarding their entitlement. (Para 22 , 24 , 26)
6. arguments from fci contesting workmen's claims. (Para 27 , 28 , 29)
7. court's analysis of bonus entitlement. (Para 30 , 32)
8. court's assessment on regularization and unfair practices. (Para 36 , 38 , 44)
9. court's directives for regularization and historical context. (Para 49 , 50)
10. conclusive order of the judgment. (Para 53)

JUDGMENT :

DEVASHIS BARUAH, J.

Heard Mr. BK Singh, the learned counsel appearing on behalf of the Food Corporation of India. Mr. B Pathak, the learned counsel appears on behalf of the Workmen.

2. Each of the parties i.e. the Food Corporation of India (for short, the FCI) as well as the Workmen have filed respective writ petitions assailing the impugned Award dated 09.12.2019 passed in Reference Case No.1/2018.

3. FCI is the writ petitioner in WP(C)No.2429/2020 whereby the Award dated 09.12.2019 passed in Reference Case No.1/2018 is assailed on the ground that the FCI was directed to pay the bonus to the Workmen involved in the Reference proceedings w.e.f. the year 2003 as per the applicable rates till the date of the Award and with a further direction that the payment of the bonus shall also continue thereafter till such date, the concerned workers are in employment of the Management.

4. The Workmen are the writ petitioners in WP(C)No.2092/2021 and they are aggrieved by the Award dated 09.12.2019 passed in Reference Case No.1/2018 on the ground that their case for regularization of their employment was rejected by the learned Industrial Tribunal-cum-Labour Court, Guwahati vide the impugned Award.

5. Before proceeding to adjudicate upon the respective issues raised in both the writ petitions, this Court finds it relevant to take note of the material facts which led to the filing of both the writ petitions.

6. It is the case of the Workmen, who are the petitioners in WP(C)No.2092/2021 that they have been rendering services in the establishment of the FCI on regular basis as casual workers. In the Claim Statement so filed by the Workmen, the details are provided at paragraph No.3(e) of the Claim Petition. The chart so provided in the said paragraph is reproduced hereinunder:

Petitioners No.Date of BirthDate of Joining
1. Sri Jogen Boro12.11.1964April, 1983
2. Sri Babui Das1.1.1967November, 1984
3. Sri Sukuram Rabha1.5.1970April, 1984
4. Sri Ganga Sahani6.5.1964December, 1982
5. Sri Prabin Borua16.6.1968June, 1983
6. Sri Haricharan Boro20.2.1972November, 1984

7. From the above-quoted chart, it is seen that all the six Workmen were engaged by the FCI sometime in the year 1982 to 1984. The materials on record further reveal that the FCI took steps for regularization of its casual employees and in that regard had issued a Circular dated 06.05.1987, wherein it was mentioned that those casual/daily rated workers who have completed 3(three) months period on 02.05.1986 and fulfilled the conditions prescribed for any entry level Category-III and IV would be regularized.

8. It is the case of the Workmen that though large numbers of casual workers were regularized, but many of them were also left out including the Workmen, though they were qualified to be regularized. Subsequent thereto, another Circular was issued bearing Circular No.38/1996 dated 09.09.1996 wherein also the FCI took a decision to regularize all casual/daily rated employees who had continuously worked for more than 3(three) months on the cut-off date i.e. 02.05.1986 and fulfilled the conditions prescribed in the E.P. Section confidential letter No.EP.1(4)/85-Vol II, dated 06.05.1987. It was also mentioned in the said Circular that casual/ daily rated employees engaged on or after 02.05.1

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