The main legal point established in the judgment is that the nature of work performed and the terms of settlements can override a ban on new recruitment, and in such cases, the services of the employees should be regularised.

The petitioners have sought for a writ of mandamus, directing respondents 1 and 2 to regularise the services of the petitioners as per the recommendation of the third respondent with effect from the date of their first appointment as temporary Peons and consequential benefits such as seniority, arrears of pay, monetary benefits etc.

2. Affidavits filed in support of the petitions and counter affidavits are perused. The Court heard the learned counsel appearing on either side.

3. From the submissions made by the learned counsel appearing for the petitioners and the respondents and looking into the material available on record, it could be seen that the petitioners have been working in the respondent-Bank for nearly about two decades as Temporary Peons(sub-staff). They had been in continuous service as temporary Peons (sub-staff) and they had been paid a consolidated salary of Rs.135/- per day for number of working days in a calendar month. They have got fixed working hours and they have to report for duty at fixed hours of work and the same would be carried out till the end of the working hours fixed by the respondent-Bank and in terms of the Tamil Nadu Shops and Establishment Act. The work entrusted to them by the respondent-Bank was supervised by various level of Officers and therefore, there was a master-servant relationship between the respondent-Bank and the petitioners. The work allotted and carried out by them is not of a casual nature, but that of a permanent nature. They have been appointed as Temporary Peons to work in the place of permanent vacancies.

4. The petitioners were doing temporary work in the respondent-Bank and the service conditions were regulated by Bi-partite settlement dated 110. 1966 as amended more specifically by clause 20.7 and 20.8, wherein, it is stated as follows:-

"temporary employee will mean "a workman who has been appointed for a limited period for which is of an essentially temporary nature or who is employed temporarily as an additional workmen in connection with a temporary increase in work of a permanent nature and includes a workman other than a permanent workman who is appointed in a temporary vacancy caused by the absence of a particular permanent workman";

The respondent-Bank vide Memorandum of Settlement dated 110. 1992 entered into with the workmen represented by All India Punjab and Sind Bank Staff Organisation under Section 20(p) and 18(1)(p) of the Industrial Disputes Act, 1947 read with Rule 58 of the Industrial Dispute Central Rules, 1957. The said Memorandum of Settlement was further amended in the year 1994 with regard to para a and b with all other conditions and terms remaining same as stated in the original.

5. Keeping in view of the plight of the temporary Peons and with a view to set at rest all disputes, which have arisen or may arise, the Management and the All India Punjab and Sind Bank Staff Organisation agreed that the case of temporary employees against permanent vacancies at the State level to be notified by the Bank from time to time and has to be availed for absorption in the subordinate cadre in the following manner:-

"Firstly, by absorbing those employees who have completed 240 days in the preceding 12 months to be reckoned from the date of last served or in any other block of 12 consecutive months commencing from 1. 1982 to 312. 1989. Their inter-se seniority would be determined State-wise (emphasis added) on the basis of the date on which they first worked as temporary employee; and

Secondly, and therefore those employees not falling in the above categories but have atleast worked for 90 days from 1. 1982 to 312. 1989 shall be given one time opportunity to appear in the selection process of the Bank and the seniority will be determined and selection will be done preferring those who have joined first in the Bank, serial wise i.e. first come first serve basis."

6. In the settlement, it was clearly stated that all temporary employees falling i