2008 Supreme(Jhk) 589
Jharkhand High Court
D.G.R.Patnaik,J.
Heavy Engineering Corporation Limited - Appellant
Versus
Their Workmen Represented By Engineering Mazdoor Panchayat Union - Respondent
Decided On : 13 June, 2008
Headnote:Labour and Industrial Laws—Regularisation—Tribunal directed for regularization of
Workmen on the ground that petitioners have been working since 20 years under petitioner Company—Company cannot use cooperative stores and the like as a subterfuge to avoid financial implications which may ensue from regularization of temporary workman—There is relationship of employer and employee between the parties which cannot be diluted by camouflage of contract labour—Impugned award upheld. (Paras 12 to 16)
D.G.R. Patnaik, J.
1. Prayer in this writ is for quashing the award dated 28th of February, 2004, passed by the Industrial Tribunal, Ranchi in Reference Case No. 1 of 1998, whereby the Industrial Tribunal has held that the Respondent-workmen were entitled for regularization of then services and other benefits at par with regular appointees.
2. The petitioner is a Central Government undertaking in the Department of Heavy Industries and registered as a Company under the Companies Act. It has employees of different categories in its different units. The employees of the petitioner-Company formed a cooperative Society of their own under the name of H.E.C. Employees Consumers Co-operative stores registered under the provisions of Bihar and Orissa Co-operative Society Act, 1935 for the purpose of meeting their requirement of regular supply of ration items and consumer goods at Government controlled prices. The Cooperative Stores is governed by its own Governing Body in accordance with its own bye-laws. It had opened markets and grinding flour mills the vicinity of H.E.C. township for the purposes of running its business of Co-operative stores. It had employed its own employees. However, the business of the Cooperative Stores could not succeed and it started incurring huge losses. The Managing Committee of the Cooperative Stores approached the Labour union, recognized by the H.E.C., to find out some solution so that the employees of the Cooperative Stores could be saved from retrenchment. The Union approached the Management of the H.E.C. and involved the conciliation machinery to sort out the problem of the Cooperative Stores. In the Conciliation proceedings, a Tripartite Agreement, involving the Management of the H.E.C., the H.E.C. workers Union and the employees of the Cooperative Stores, was entered on 19.06.1990 in respect of 53 persons as regular employees and 16 others, who were on the muster roll of the Cooperative Stores. The understanding arrived at in the agreement was as follows:
(a) Based on the principle of seniority in their respective category 38 regular employees of the H.E.C. Consumer Cooperative store will be absorbed as regular employees of H.E.C. with effect from the same date.
(b) Those employees of H.E.C. Consumer Co-operative store who applied for better prospect in. H.E.C. and whose name found place in the list of candidates (already selected) will be absorbed as regular employees of H.E.C.
(c) The remaining employees who are in the roll of H.E.C. Consumer Co- operative stores (regular and muster roll) or 01.07.1970 and are left unabsorbed will be absorbed as employees of H.E.C. in corresponding status within three months from the date of agreement. In terms of the Agreement, the remaining employees of the Cooperative stores, were also absorbed as regular employees of H.E.C. (Sic) due course. However, the stand of the Management was that the (Sic) for absorbing the employees of the Cooperative stores was made as a (Sic) time offer with a clear stipulation that the employees of the Cooperative Stores who might be appointed after the date of agreement/settlement would not be considered for employment in the petitioner-Company (Sic) would they be entitled for any other benefit from the petitioner-Company. Despite this, the employees of the Cooperative (Sic) who were appointed subsequent to the date of the above-refer Agreement, (altogether 44 in number), raised a demand for the absorption under the Petitioner-Company by way of regular appointment and pay-scales according to the work and other benefits under petitioner-Company. On refusal by the Company they raised an Industrial dispute, through the Labour Union. The dispute was referred by the (Sic) Government to the Industrial Tribunal for adjudication. The (Sic) reference was as follows: Whether the workmen Shri N.K. Pandey and 43 others are entitled for regular employment, pay-scales according to work and other benefits in H.E.C. Ltd., Dhurwa, Ranchi?