IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
The Managing Director, Tamil Nadu Water Supply and Drainage Board, Chennai - Appellant
Versus
V. Murugaiyan & Another - Respondent
WP Nos. 26632 to 26654 of 2016 & WMP Nos. 22839 to 22861 of 2016 & WP. NO. 26632 of 2016
Decided On : 22-09-2022
Labour Court - Conferment of Permanent Status - Tamil Nadu Industrial Establishment (Conferment of Permanent Status to Workmen) Act, 1981 - Section 3 - Industrial Disputes Act, 1947 - Section 33-C(2)
Fact of the Case:
The Tamil Nadu Water Supply and Drainage Board absorbed daily wage employees from local bodies and subsequently granted them consolidated pay salary and time scale of pay. The employees filed petitions before the Labour Court seeking regularisation and permanent absorption under Section 33-C(2) of the Industrial Disputes Act, 1947, based on completion of 480 days of continuous service as per Section 3 of the Conferment of Permanent Status Act, 1981.
Finding of the Court:
The Labour Court granted retrospective regularisation to the employees, which was challenged by the petitioner-Board. The Court held that the Conferment of Permanent Status Act did not apply to the employees of the Board and that the Labour Court erroneously assumed jurisdiction by entertaining the petition under Section 33-C(2) without adjudication of disputed issues. The Court quashed the orders of the Labour Court.
Issues: 1. Applicability of Conferment of Permanent Status Act to the employees of the Board. 2. Jurisdiction of the Labour Court under Section 33-C(2) without adjudication of disputed issues.
Ratio Decidendi: The Conferment of Permanent Status Act did not apply to the employees of the Board, and the Labour Court erred in granting retrospective regularisation without adjudication of disputed issues. The benefit of regularisation granted by the Board itself was a concession and could not be extended in violation of the Service Rules. Irregular and illegal orders cannot be followed by the Courts for granting similar relief.
Final Decision: The orders of the Labour Court granting retrospective regularisation were quashed, and all the writ petitions were allowed.
JUDGMENT
(Prayer: Writ Petition is filed under Article 226 of the Constitution of India, praying for the issuance of a Writ of Certiorari, calling for the records of the second respondent made in order dated 14.10.2015 in CP No.148 of 2008 and quash the same.)
Common Order:
1. The orders dated 14.10.2015 passed by the second respondent- Labour Court in CP Nos.148 to 170 of 2008, are under challenge in these writ petitions.
2. The writ petitioner is Tamil Nadu Water Supply and Drainage Board. The first respondent was working in the Tamil Nadu Water Supply Board. The employee was initially appointed by the Local Body/ Panchayat Union and on account of inclusion of the said Panchayat Union within the urban areas, the employees appointed by the Local Bodies on temporary daily wage basis were absorbed by the Tamil Nadu Water Supply and Drainage Board. They became the employees of the writ petitioner- Board and they continue to serve as daily wage employees. Subsequently, pursuant to the Government Orders, the employees were granted consolidated pay salary and the said salary was periodically enhanced. Finally, the time scale of pay was granted to these employees considering their long services and based on the Government Orders. In this regard, the benefits were also granted to the employees who were transferred from Local Bodies to the writ petitioner-Board.
3. These daily wage employees, who were absorbed in the Tamil Nadu Water Supply and Drainage Board and subsequently, brought under consolidated pay salary and the time scale of pay filed petitions before the Labour Court under Section 33-C(2) of the Industrial Disputes Act, 1947.
4. The petition was filed under Section 33-C(2) mainly on the ground that the first respondent-employee has completed 480 days of continuous service on 18.07.1976 within the period of 24 calender months as per Section 3 of Tamil Nadu Industrial Establishment (Conferment of Permanent Status to Workmen) Act, 1981 and thus their services should be deemed to have been made permanent from the date of his appointment as per mandatory provisions of the above Act, 1981.
5. The basis for the claim was relying on Section 3 of the Conferment of Permanent Status Act. Accordingly, the first respondent sought for the relief to grant regularisation and permanent absorption in the Board's services from the date on which he completed 480 days of service as temporary employee.
6. The Labour Court conducted an enquiry and accepted the claim of the first respondent-employee and passed an order granting the relief of retrospective regularisation from the date on which the first respondent completed 480 days of service with all consequential monetary benefits.
7. The said order of the Labour Court is under challenge in these writ petitions.
8. The learned Senior Counsel appearing on behalf of the petitioner-Board contended that the order per se is untenable, as there was no adjudication of disputed issues between the parties by way of an industrial dispute. In the absence of any such adjudication of disputed issues, no petition under Section 33-C(2) of the Industrial Disputes Act, 1947, is entertained and thus the Labour Court erroneously assumed the jurisdiction and entertain the petition and granted the relief and thus the order impugned is liable to be set aside.
9. The learned Senior Counsel for the petitioner-Board is of an opinion that the conferment of permanent status is inapplicable to the employees of the Board. General Acts are not applicable, since the Special Rules governing the service conditions are very much in force as far as the petitioner-Board is concerned.
10. When the Board adopted the Government Service Rules for its employees and the Board being the State, within Article 12 of the Constitution of India, the said service conditions and rules alone are applicable to the employees working in the Board and the general Act is not applicable. The general statutes and principles cannot be applied. Therefore, the bene
The Conferment of Permanent Status Act did not apply to the employees of the Board, and the Labour Court erred in granting retrospective regularisation without adjudication of disputed issues.
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 main legal point established is that the burden of proof lies on the party claiming an employer-employee relationship, and regularisation and permanent absorption can only be granted in accordanc....
The court upheld the Tribunal's awards for employee regularization, emphasizing the prohibition of unfair labor practices under the Industrial Disputes Act, while clarifying the need for state approv....
Workmen completing 480 days of service are entitled to permanent status under the Tamil Nadu Industrial Establishments Act, regardless of subsequent classification as contract labourers.
Labour Law – Unfair labour practice - when similarly situated workmen have been grated permanency by the University, non-granting of the same to the present workmen is nothing but an unfair labour pr....
The main legal point established in the judgment is that the regularisation of service could only be from the date of the petitioners' appointment in regular service i.e., 03.10.2012, and not from th....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.