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2025 Supreme(Online)(Mad) 34766
IN THE HIGH COURT OF JUDICATURE AT MADRAS
JUSTICE, J
Tamil Nadu Civil Supplies Corporation – Appellant
Versus
First Respondent Union – Respondent
Writ Petition | I.D.No.55 of 2000
For the Appellants/Petitioners: Mr.Haja Nazirudeen
For the Respondents: Mr.V.Ajay Khose
Workmen are entitled to regularization and benefits under labor laws after 480 days of service, with wages on a piece-rate basis adjusted to ensure parity with Class - IV employees.
Headnote:(A) Industrial Disputes Act, 1947 - Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981 - Award of the Industrial Tribunal upheld regarding regularization of workmen and their entitlements - Tribunal's findings on demands for wages, benefits, and basic amenities justified. (Paras 3-52)
(B) Employment Status - Workmen deemed permanent after 480 days of service within two years - Piece-rate payment system upheld with adjustments to ensure earnings equivalent to Class - IV employees. (Paras 52)
Facts of the case:
The petition challenged an award by the Industrial Tribunal which granted permanency to 444 workmen of Tamil Nadu Civil Supplies Corporation, addressing demands for regularization, wages, and benefits. The management contended that many demands were already met and sought to contest the Tribunal's decision on wages and permanency. (Paras 1-4)
Findings of Court:
The Tribunal's award was upheld, confirming that the workmen should be regularized based on service duration, with wages on a piece-rate basis adjusted to ensure parity with Class - IV employees. (Paras 52)
Issues: The main questions were regarding the applicability of benefits to the workmen, their entitlement to permanency and wage scales, and the validity of the Tribunal's award. (Paras 28-50)
Ratio Decidendi: The court emphasized that the workmen's employment was perennial, and their classification as permanent was justified under the applicable labor laws. The management's arguments regarding financial constraints and lack of sanctioned posts were rejected. (Paras 32-48)
Result: The writ petition was disposed of with directions for regularization and wage adjustments while upholding the Tribunal's award. (Paras 53)
| Table of Content |
|---|
| 1. challenge to industrial tribunal award. (Para 1 , 2 , 3) |
| 2. management's arguments on demands. (Para 4 , 19 , 21) |
| 3. nature of employment and pay structure. (Para 5 , 6 , 11) |
| 4. court's observations on employment conditions. (Para 8 , 12 , 14) |
| 5. court's decision on regularization and wage structure. (Para 36 , 52) |
| 6. final order on petition. (Para 53) |
ORDER
This Writ Petition is filed challenging the impugned award of the Industrial Tribunal, Chennai, dated 02.07.2008 made in I.D.No.55 of 2000. By the said award, the reference made by the appropriate Government vide G.O.(D).No.215, dated 14.03.2000, Labour and Employment (A1) Department, Government of Tamil Nadu, Chennai - 9 was answered by the Industrial Tribunal.
2. The following seven questions were referred by the appropriate Government:-
"Demand No.1: Whether the demand, that all the 444 workmen working under the Management of Tamil Nadu Civil Supplies Corporation shall be regularised, is justified? If so, to what relief they are entitled to? From what date it shall be given effect to?
Demand No.2: Whether the demand of the union that 444 workmen working under the management of Tamil Nadu Civil Supplies Corporation shall be paid basic pay, is justified? If so, what are the scales of pay to be fixed? From what date the benefits shall be given?
Demand No.3: Whether the demand, that the loading and unloading workers shall be issued with identify card, is justified?
Demand No.4: Whether the demand that contribution towards Employees Provident Fund shall be deducted to loading and unloading workmen and that they shall be extended with ESI Medical benefits, is justified?
Demand No.5: Whether the demand that 444 workmen working under Tamil Nadu Civil Supplies Corporation shall be paid minimum bonus is filed? If so, to what relief they are entitled to? From what date it shall be paid?
Demand No.6: Whether the demand that Earned leave National and Festival Holidays with pay shall be given, is justified? If so, to what relief they are entitled to?
Demand No.7: Whether the demand that the basic amenities such as latrine, bathroom, dining hall etc., shall be provided in each godown for the above workmen, is justified?"
3. The reference was answered in respect of the seven demands as follows:-
"In the result, award is passed holding that 1) all the 444 workmen working under the Management of Tamil Nadu Civil Supplies Corporation have to be regularised. The demand is justified. The petitioner union is entitled to all the benefits as prayed for in the claim statement. 2) The demand of the union that 444 workmen working under the Management of T.N.C.S.C shall be paid basic pay is also justified. The petitioner unions are entitled to all the benefits as prayed in the claim statement, 3) the demand that the loading and unloading workers shall be issued with identify card, is justified. 4) The demand that contribution towards Employees Provident Fund shall be deducted to unloding workmen and that they shall be extended with ESI Medical benefits, is justified. 5) The demand that 444 workmen working under T.N.C.S.C. shall be paid minimum bonus is justified. 6) The demand that Earned leave National and Festival Holidays with pay shall be given is justified and 7) The demand that the basic amenities such as latrine, bathroom, dining hall etc. shall be provided in each godown for the above workmen, is justified. No costs."
Feeling aggrieved, the management is before this Court.
4. At the outset, when the Writ Petition is taken up for hearing, the learned Additional Advocate General, on behalf of the management, would submit that as far as Demand Nos. 3 to 7 are concerned, the identity cards have been issued, benefits of Provident Fund and ESI have been extended, the minimum bonus is being paid, Earned Leave, national and festival holidays with pay are granted, and basic amenities such as latrines, bathrooms, and a dining hall are all provided. The management is no longer aggrieved by the said d
