2015 Supreme(Mad) 2725
IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.S.KARNAN, J.
Indian Bank Jewel Appraisers Association, Represented by its General Secretary, Mr.S.Bakthavathsalam - Petitioner
Vs.
Government of India, Rep. by its Secretary, Ministry of Labour and Employment, Shram Sakthi Bhavan – Respondent
W.P.No.33464 of 2014 and M.P.Nos.1 and 2 of 2015 & 2 of 2014
Decided On : 25.08.2015
Advocate Appeared:
For Petitioner: Mr. M.V.Muralidharan
For Respondents: Mr. Jayesh Dolia, Senior Counsel (for R2) for M/s. Aiyar and Dolia
Mr. Haja Mohideen Gisthi (for R1, R3 & R4) for Mr. Su.Srinivasan
The main legal point established in the judgment is that the nature of work, control, and supervision over the jewel appraisers, their payment structure, and their relationship with the bank did not establish an employer-employee relationship as defined under Section 2(S) of the Industrial Disputes Act 1947.
Headnote:
Jewel Appraisers - Employment Dispute - Industrial Disputes Act 1947, Section 2(S) - The court discussed the nature of work, control, and supervision over the jewel appraisers, their payment structure, and their relationship with the bank. The court found that the jewel appraisers were not workmen as defined under Section 2(S) of the Industrial Disputes Act 1947.
Fact of the Case:
The petitioner, an association of jewel appraisers, sought regularization of their services as full-time employees of the bank. The appraisers claimed to have been continuously working for more than 30 years, performing various duties related to jewel loan processing.
Finding of the Court:
The court directed the second respondent to conduct a detailed enquiry in the presence of the third respondent and the petitioner after prior notice to the parties concerned and then pass final orders.
Issues: The main issue was whether the jewel appraisers could be considered as workmen under the Industrial Disputes Act 1947, Section 2(S), and entitled to regularization of their services.
Ratio Decidendi: The court found that the nature of work, control, and supervision over the jewel appraisers, their payment structure, and their relationship with the bank did not establish an employer-employee relationship as defined under Section 2(S) of the Industrial Disputes Act 1947.
Final Decision: The court directed the second respondent to conduct a detailed enquiry in the presence of the third respondent and the petitioner after prior notice to the parties concerned and then pass final orders.
The short facts of the case are as follows: The petitioner submits that the Petitioner's Association is a registered Association, registered on 02.01.2013 and its Registration No.3471/CNI. The member of the association are the jewel appraisers who are employed in the second Respondent's bank in various places of Tamil Nadu and Union of India. Since 1983 onwards the Jewel Appraisers of the Association are working under the control of second respondent's bank in various branches of the State and all over India. The Jewel Appraisers are working in the second respondent bank and from the beginning of the Banking hours and to the end of the banking hours. Further the Appraisers should be present at the bank premises on all working days during the Banking hours. Therefore it is clearly proved that the Jewel Appraisers of the Association working hours are same as to the regular employees of the second respondent bank.
2. He further submits that the nature of the work of the Jewel Appraisers for weighing, assessing the value and for verifying the quality and quantity of gold jewel and ornaments tendered at the branches for granting jewel loan to the borrowers. The appraisers are given a certificate on the basis of which the management decides, whether to grant loan or not to the customers. Apart from the above the appraisers will be required to do other clerical works incidental to or connected with sanction of jewel loan, disbursement and follow up of the loan. Further, the appraisers fill up jewel loan application and obtain signature from customers and the second respondent bank collecting the processing fee of Rs.560/- out of Rs.1,00,000/- from the Borrower. Therefore, according to them, their work is permanent through out the year and it is indispensable in the loan transaction of the banks. Even though the appraisers are permanent, they are not given other benefits given to permanent workers of the Bank.
3. He further submits that the jewel appraisers are employees by the second respondent bank on piece rate basis and are paid at the rate of Rs.300/- per every sanctioned way of loan. That the ceiling of the jewel was fixed by the second respondent bank. That the Jewel Appraisers of the second respondent bank was paid commission of Rs.3/- per every 1000/- rupees which is determined by the second respondent bank and such payment should be considered as wages under Section 2(rr) of the Industrial Disputes Act. He further submits that the appraiser should be present at the Bank's premises on all working days during banking hours and that the appraisers place of work is also in the premises of the second respondent bank and subsequently the second respondent bank have been strictly instructed that jewels should be appraised only in the Bank premises and in the presence of the borrowers and that on no account they should be sent out side the Bank premises for appraisal and further the appraiser cannot do private business within the business hours and bank premises. The instruments like weighing machines weights, scales and acids are supplied by the second respondent bank to the appraisers. Therefore, the second respondent bank has treated the Appraiser as its own employee and therefore is anxious to maintain cordial relationship between Appraisers and Management.
4. He further submits that the appraisers concerned absented himself from attending the office during office hours, his remuneration is ordered to be deducted proportionality for his absence. If an appraisers wants leave for a particular day, he should obtain necessary permission from the concerned Manager of the second respondent Bank. Therefore the second respondent bank is having effective control and discipline over its employees of the appraisers. He further submits that the Appraisers are continuously working in the second respondent bank for more than 30 years, without any break of service. But inspite of many requests made by the appraisers have not been regulari