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2025 Supreme(Online)(Mad) 76193

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice M.S. RAMESH
TUTICORIN PORT TRUST DEMOCRATIC STAFF UNION – Appellant
Versus
TUTICORIN PORT TRUST – Respondent
W.A.No.2254 of 2024 | W.A.No.3121 of 2024 | CMP.No.23900 of 2024



Advocates:
For the Appellants/Petitioners: Mr.V.Ajoy Khose, Mr.R.Yashod Vardhan, Sr. Counsel for Mr.S.Yashwant, Standing Counsel
For the Respondents: Mr.R.Yashod Vardhan, Sr. Counsel for Mr.S.Yashwant, Standing Counsel, Mr.V.Ajoy Khose

Canteen workers under pervasive control of employer are entitled to absorption as regular employees, but relief can be restricted based on date of filing and order due to delay.

Headnote:(A) Industrial Disputes Act, 1947 - Section 12(3) - Settlement - Canteen facilities - Pervasive control - Absorption of canteen workers as regular employees - Back wages - Restriction based on date of filing writ petition and date of order.

(B) Service Law - Absorption - Pervasive control test - Canteen established with sanction of employer - Nomination of office bearers by employer - Acceptance of obligation through statutory settlement - Held that employer had pervasive control - Reliance on Supreme Court precedents on similar facts.

(C) Writ Appeal - Scope - No interference when order of learned Single Judge is justifiable - Both appeals dismissed.

Facts of the case:
A staff union filed a writ petition seeking absorption of departmental canteen workers as regular employees of the port trust. The canteen was established in 1973 with the sanction of the Chief Engineer and Administrator of the port trust, who also nominated office bearers from among the port trust staff. In 1994, a settlement under Section 12(3) of the Industrial Disputes Act was signed wherein the port trust accepted to provide canteen facilities. The learned Single Judge allowed the writ petition, directing absorption from the date of filing of the writ petition but granting actual monetary benefits only from the date of the order. Both the union and the port trust appealed.

Findings of Court:
The Division Bench affirmed the finding that the port trust had pervasive control over the canteen, noting that the canteen was established with its sanction, office bearers were nominated by it, and the settlement acknowledged its obligation. The court held that the restriction of absorption to those on rolls as on the date of filing the writ petition and the limitation of monetary benefits to the date of the order were justifiable given the delay in approaching the court. No interference was warranted.

Issues: (i) Whether the canteen workers are entitled to absorption as regular employees of the port trust? (ii) Whether absorption and monetary benefits should be granted from the date of initial appointment or only from the date of filing the writ petition and date of order?

Ratio Decidendi: Where an employer exercises pervasive control over a canteen and has accepted an obligation to provide canteen facilities through a statutory settlement, the canteen workers are entitled to absorption as regular employees. However, the relief of absorption and back wages may be restricted based on the date of filing the writ petition and the date of the court order, considering the delay in litigation.

Result: Both writ appeals were dismissed. The port trust was directed to comply with the directions of the learned Single Judge within eight weeks. No costs. Connected miscellaneous petition closed.

COMMON JUDGMENT

(Judgment of this Court was delivered by M.S.RAMESH,J)

These Writ Appeals have been filed to set aside the impugned order passed in W.P.No.10907 of 1998 dated 26.02.2024.

2.It is the case of the Tuticorin Port Trust Democratic Staff Union that the canteen at the Tuticorin Port Trust was established in the year 1973 and though the canteen is under the pervasive control of the Port Trust, the canteen workers have not been absorbed till date. With this broad claim, they had filed a Writ Petition in W.P.No.10907 of 1998, seeking for issuance of Writ of Mandamus, directing the Port Trust to absorb the departmental canteen workers as the employees of the Port Trust with consequential benefits, including regular pay scale and other benefits. The learned Single Judge, by an order dated 26.02.2024, had allowed the Writ Petition and directed the Port Trust to absorb the departmental canteen workers of the Port Trust canteen from the date of filing of the Writ Petition. But, however, ordered the backwages to be paid only from the date of the order passed in the Writ Petition. These directions in the Writ Petition are as follows:-

“24. In fine, this Writ Petition is allowed by directing the respondent to absorb the departmental canteen workers working in the Port Trust canteen managed by the Tuticorin Port Trust Canteen Management Committee. Since, the petitioner had approached this Court only in the year 1998, I am of the view that the workers who were on the rolls of the departmental canteen as on the date of filing the Writ Petition would alone be entitled to relief. The respondent is directed to prescribe the Rules and Regulations and service conditions of such canteen workers including their pay and other attendant benefits, within a period of three (3) months from the date of receipt of a copy of this order.

(b)The respondent may also take into consideration the pay scale prescribed by the Chennai Port Trust in that aspect. The respondent shall also take into consideration the Rules and Regulations prevailing at Chennai Port Trust or in other Ports.

(c)It is also made clear that employees so declared will be entitled for fixation of salary based on the said Rules and Regulations only notionally and they would be entitled to actual monetary benefits from the date of this order.

(d)In case, any of the employees who worked were on the rolls as on date of filing of this Writ Petition all have superannuated thereafter their salary shall also be calculated notionally and their terminal benefits be paid on notionally arrived at last drawn salary to them within a period of eight (8) weeks from the date of finalising of the Rules and Regulations as indicated supra.”

3.The learned Senior Counsel appearing for the Port Trust submitted that the canteen was established by a group of workers and is run by the Canteen Management Committee (CMC). According to him, there are no separate provision of expenditure of the canteen in the Port Trust budget and the Rules framed by the CMC are also not subject to the prior or post approval of the Chairman of the Board. Even the disciplinary proceedings against the canteen workers are conducted by the CMC and the Port Trust has no role in the same. All the pervasive control were only by way of a patronage, which cannot be claimed as total control of the canteen by the Port Trust.

4.The learned counsel appearing on behalf of the Staff Union submitted that under a 12(3) Settlement of the Industrial Disputes Act (ID Act), dated 06.12.1994, in which the Tuticorin Port Trust was also a signatory, it was specifically agreed that the canteen facilities would be provided to its employees. According to him, the Administrator of the Port Trust had also accorded permission for establishing the departmental canteen in the year 1973 itself. The office bearers of CMC was also nominated by the Administrator of the Port Trust. In identical circumstances, the Chennai Port Trust canteen workers were also absorbed as th

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