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2025 Supreme(Mad) 5220

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.S. RAMESH, R. SAKTHIVEL, JJ.
The Administrator, Chengalrayan Co-Operative Sugar Mills Ltd. – Appellant 
Versus
The Deputy Commissioner of Labour,  Cuddalore – Respondent 
W.A.No.2867 of 2024, CMP NO.21111 OF 2024
Decided On : 16-12-2025

Advocates Appeared:
For the Appellant :Mr.Haja Nazirudeen Additional Advocate General Assisted By Mr.P.Hari Babu Government Advocate
For the Respondent:Mr.G.Ameedius Government Advocate
Amicus Curie : Mr.K.M.Ramesh Senior Counsel

A Government declaration is required to classify a sugar factory as seasonal under the applicable labor law; continuous service of an employee in such a factory permits entitlement to permanent status.

Headnote:(A) Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981 - Section 3 - Application for permanent status - Appeal against order granting permanent status to Technical Assistant at sugar mill based on continuous service of 480 days within 24 months - Court affirms that employment was continuous despite mill's seasonal operations - No Government order declaring mill seasonal presentation. (Paras 34)

(B) Employment nature - Definition of seasonal factory under applicable act - Overarching operational activities supporting the employment status of technical workers demonstrated through evidence; mere assertion of seasonality without supporting Government declaration deemed insufficient. (Paras 12, 18, 24, 29)

Facts of the case:
The second respondent applied for permanent status after serving 480 continuous days and was granted by the Labour Commissioner, prompting the sugar mill to appeal against this ruling while characterized as a seasonal operation.

Findings of Court:
Employment status deemed permanent as respondent continuously served as Technical Assistant at the mill contrary to the claim the mill operated seasonally without a proper Government declaration. Court found no reason to interfere with the findings of lower authority.

Issues: Main issues included interpretation of the operational status of the sugar mill, applicability of the 1981 Act to its employees, and the valid determination of the second respondent's employment status.

Ratio Decidendi: The court ruled that since there’s no valid Government declaration classifying the sugar mill as seasonal, the provisions of the 1981 Act are fully applicable to the case leading to the second respondent's permanent employment status.

Result: Writ appeal dismissed; conferring permanent status to second respondent upheld.

Table of Content
1. application for permanent employment status under the 1981 act. (Para 1)
2. arguments concerning the nature of employment. (Para 6 , 7 , 8)
3. court's observations on the evidence of employment continuity. (Para 9 , 10 , 12 , 18)
4. conclusion affirming permanent status based on continuous service. (Para 28 , 29)
5. final ruling on the writ appeal. (Para 34)

JUDGMENT :

R. SAKTHIVEL, J.

The second respondent herein had submitted an application dated November 27, 2009, under Section 3 of 'the Tamil Nadu Industrial Establishment (Conferment of Permanent Status to Workmen) Act, 1981 (Tamil Nadu Act No.46 of 1981)' ['1981 Act' for brevity] to the first respondent herein praying to confer permanent status to his employment / service as Technical Assistant (Civil) at the appellant - sugar mill.

1.1. The first respondent after hearing both sides, concluded that the second respondent having joined the appellant - sugar mill as Technical Assistant (Civil) as early as June 8, 1989 on temporary basis and having been continuously employed ever since then, thereby being in continuous service for a period of 480 days and above within a period of 24 calendar months, is entitled to permanent status from the date of competition of 480 days of service. Accordingly ordered for conferment of permanent status with all service and monetary benefits vide Proceedings No. 'E/3156/2010'on July 2, 2010.

1.2.Aggrieved by the aforesaid Order of the first respondent dated July 2, 2010, the appellant - sugar mill filed a writ petition in W.P. No.18175 of 2010. Learned Single Judge of this Court allowed the writ petition in part on March 16, 2023. Relevant portion of the learned Single Judge's Order reads thus:

"11. From the case pleaded by the petitioner in the additional affidavit, this Court finds that findings of the first respondent regarding the engagement of the second respondent for a period of 480 days in two years period, is against the petitioner's version. Though the second respondent is not entitled for regularisation of services in the petitioner Establishment, the second respondent is certainly entitled to the benefit of permanent status as declared respondent.

12. Accordingly, this writ petition is partly allowed While confirming the order of the second respondent, (sic, read as first Respodent) conferring the permanent status to the second respondent, a direction regarding the regularisation of the petitioner [sic, read as second respondent] in a suitable post with pay protection and service benefits is set aside. No costs."

1.3.Challenging the Order of the learned Single Judge made in the aforesaid writ petition, the writ petitioner therein has filed this writ appeal.

2. Mr.Haja Nazirudeen, learned Additional Advocate General, assisted by Mr.P.Hari Babu Government Advocate, appeared on behalf of the appellant - sugar mill and Mr.G.Ameedius learned Government Advocate, appeared for the first respondent. Though the second respondent - workman initially entered appearance through his Counsel in this writ appeal, later there was no representation on his behalf, despite sufficient time being given.

3. The main questions that needs to be decided in this writ appeal are as follows:

(i) Whether the appellant - sugar mill is a seasonal mill, that is to say, an establishment of seasonal character as per Section 1 (3) of the 1981 Act ?

(ii) Whether the second respondent is a seasonal employee at the appellant - sugar mill ?

(iii) Whether the 1981 Act is applicable to the appellant - sugar mill ?

4. Learned Additional Advocate General brought two Judgments to the notice of this Court. The two Judgments are Division Bench Judgments of this Court in T.N. Civil Supplies Corpn. Workers Union -vs- T.N. Civil Supplies Corpn. Ltd., reported in 1997 (III) CTC 535 and Perambalur Sugar Mills Employees Union Ltd. -vs- Perambalur Sugar Mills Ltd., reported in 2002 (2) L.L.N 345, wherein it was inter alia observed that sugar mill is a season mill and that the 1981

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