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2022 Supreme(Mad) 1138

IN THE HIGH COURT OF MADRAS
S.M. Subramaniam, J.
The Superintending Engineer (North) Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) (Formerly Known as Tamil Nadu Electricity Board) & Ors. - Petitioners
Versus
The Presiding Officer, III Additional Labour Court, Chennai and Anr. - Respondents
W.P.Nos.31352 to 31355 of 2017 and W.M.P.Nos.34450 to 34453 of 2017
Decided On : 14-11-2022

Advocates Appeared:
For the Petitioners: Mr. Anand Gopalan for M/s. T.S. Gopalan and Co.
For the Respondents: Labour Court, Mr. S.Ravi.

The central legal point established in the judgment is the requirement for contract labourers to comply with the terms and conditions stipulated for regularisation and permanent absorption, including the receipt of ex-gratia payment, and the necessity of establishing an employer-employee relationship.

Headnote:

Labour Court - Industrial Disputes Act, 1947 - Section 2A(2) - Tamil Nadu Electricity Board Service Regulations - [Writ Petition] - [Regularisation, Permanent Absorption] - [Section 2A(2) of the Industrial Disputes Act, 1947, Section 79C and K of the Electricity Supply Act, 1943] - The court discussed the provisions of Section 2A(2) of the Industrial Disputes Act, 1947, and the Tamil Nadu Electricity Board Service Regulations, and their application to the case. The court highlighted the conditions for regularisation and permanent absorption of contract labourers and their compliance with the terms and conditions stipulated in the Board proceedings and the Settlement, emphasizing the requirement of receiving ex-gratia payment for regularisation. The court also considered the responsibility of the principal employer for payment of wages to contract labourers and the necessity of establishing an employer-employee relationship. The judgment quashed the Awards dated 17.03.2016 passed in I.D.Nos.336, 337, 338 and 339 of 2009.

Fact of the Case:

The case involved a dispute between the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) and contract labourers who sought continuous employment, backwages, and other service benefits. The contract labourers claimed that they were entitled to regularisation despite not receiving ex-gratia payment, while TANGEDCO argued that the contract labourers had not fulfilled the conditions for regularisation and permanent absorption.

Finding of the Court:

The court found that the Labour Court's decision to grant relief based solely on the contract labourers' completion of 240 days of service was erroneous. The court emphasized the need for contract labourers to comply with the terms and conditions stipulated for regularisation and permanent absorption, including the receipt of ex-gratia payment. The court also highlighted the responsibility of the principal employer for payment of wages to contract labourers and the necessity of establishing an employer-employee relationship.

Issues: The issues involved in the case included the entitlement of contract labourers to regularisation and permanent absorption, the compliance with the terms and conditions stipulated for regularisation, the responsibility of the principal employer for payment of wages, and the necessity of establishing an employer-employee relationship.

Ratio Decidendi: The court held that the relief of continuity of service with backwages could only be granted if the contract labourers were not terminated, and that the Labour Court's decision was based on insufficient evidence and was therefore perverse. The court emphasized the need for contract labourers to establish their compliance with the terms and conditions stipulated for regularisation and permanent absorption, and the necessity of establishing an employer-employee relationship.

Final Decision: The court quashed the Awards dated 17.03.2016 passed in I.D.Nos.336, 337, 338 and 339 of 2009, and allowed all the writ petitions.

ORDER :

[Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, calling for the records of the First Respondent in I.D.No.336/2009, quash the Award dated 17.03.2016.]

[Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, calling for the records of the First Respondent in I.D.No.337/2009, quash the Award dated 17.03.2016.]

[Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, calling for the records of the First Respondent in I.D.No.338/2009, quash the Award dated 17.03.2016.]

[Prayer: Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorari, calling for the records of the First Respondent in I.D.No.339/2009, quash the Award dated 17.03.2016.]

1. The issues involved in all the writ petitions are one and the same and hence they are disposed of by this common order.

2. The Awards of the Labour Court dated 17.03.2016 passed in I.D.Nos.336, 337, 338 and 339 of 2009 are under challenge in the present writ petition.

3. The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) is the writ petitioner in all writ petitions.

4. The 2nd respondents/workmen in all these writ petitions are contract labourers, raised disputes under Section 2A(2) of the Industrial Disputes Act, 1947 before the Labour Court, seeking the relief of continuous employment along with backwages and other consequential service benefits.

5. The respondents/workmen in all these writ petitions have stated that they were working as contract labourers from the year 1996 in TANGEDCO. They have completed 240 days of service in every year and the similarly placed contract labourers were brought under the regular establishment in the sanctioned post. However, the case of the respondents/workmen was not considered on the ground that they had not received ex-gratia payment. However, the respondents/workmen claimed the ex-gratia payment from the petitioner/Board, which was not granted to them. Therefore, the respondents/workmen cannot be deprived of their right of regularisation, merely on the ground that they had not received ex-gratia from the petitioner/Board. The respondents/workmen submitted several representations to reinstate them and to regularise their services. However, their claim was not considered. Thus, they raised Industrial Disputes before the Labour Court based on the failure report submitted by the Conciliation Officer on 21.12.2009.

6. The writ petitioners/Board herein disputed the contentions raised by the respondents/workmen before the Labour Court. The writ petitioners have stated that pursuant to the recommendations of Justice Khalid’s Commission, the Board also issued proceedings and the eligible contract labourers were regularised in a phased manner in a sanctioned post in the time scale of pay. The contract labourers, who have complied with the terms and condition stipulated in the Board proceedings, were considered for regular absorption. Since the respondents/workmen had not received any ex-gratia, which is a condition for regularisation, the case of the respondents/workmen was not considered. The contract labourers identified were paid ex-gratia payment and the left out contract labourers were also considered in the year 2007 by providing an opportunity. Therefore, the respondents/workmen had not at all served as contract labourers during the relevant point of time and therefore, the writ petitions are liable to be rejected.

7. The learned counsel appearing on behalf of the petitioner/TANGEDCO made a submission that the Petitioner/Board has to follow the provisions of the Tamil Nadu Electricity Board Service Regulations for the purpose of appointments, regularisation, permanent absorption etc. The Regulation was framed in exercise of powers conferred by Section 79C and K of the Electricity Supply Act, 1943. The posts are crea

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