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
| 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
Morinda Co-operative Sugar Mills Ltd vs. Ram Kishan
Anil Bapurao Kanase vs. Krishna Sahakari Sakhar Karkhana Ltd.
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 statu....
The court affirmed that terminations without adherence to natural justice and statutory provisions are illegal, emphasizing the rights of workers under the Tamil Nadu Permanent Status Act.
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.
The judgment establishes the obligation to comply with the Inspector of Labour's order under the Act and the application of the Act to the Corporation and its employees.
The court's decision established that when temporary or ad-hoc appointments are continued for a long period of time, the Court has to presume that there is a regular need for service on regular posts....
The main legal point established in the judgment is the requirement of 'actual proof' of continuous service for 480 days within 24 calendar months under the Permanency Act, the burden of proof on the....
Permanent Status Act overrides 12(3) settlements; workmen gain permanent status after 480 days continuous service.
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