Local bodies must adhere to recruitment rules for employment; informal appointments do not guarantee employee status.

Per: Justice Vivek Rusia

1. This order shall govern the disposal of Writ Appeal Nos.729/24, 739/24, 740/24, 741/24, 742/24, 744/24, 745/24, 746/24, 749/24, 751/24 & 755/24. Regard being had to the similitude of the controversy involved in the aforesaid appeals, they are heard analogously and disposed of by this common order.

2. Appellants have filed these appeal challenging the order dated 31.1.2024, whereby the Miscellaneous Petition filed by the Nagar Palika Nigam, Ujjain has been allowed and the order of Labour Court dated

1.7.2020 in Case No.148/2019/ID Act (Reference) has been set aside.

For convenience the facts are being taken from WA No.729/2024:-

3. Nagar Palika Nigam, Ujjain is a local body established under the M.P. Municipal Corporation Act, 1956 . The appellant approached the Labour Court by way of reference that he was appointed on the post of Daily Wager on 10.3.2016 on fixed salary of Rs.5,500/- per month and after three years in the year 2019 by an oral order he was discontinued from the service without any notice and compensation. The Nagar Parishad did not follow the principle of last come first go. After discontinuing the service, other daily wagers have been appointed. The appellant had worked more than 240 days in one calendar year, therefore, he had acquired the status of permanent employee, hence termination amounts to retrenchment, hence without payment of compensation same is liable to be declared illegal.

4. The Nagar Parishad contested the dispute by submitting that the daily wagers were not directly appointed by the Nagar Parishad, in fact they Signature Not Verified Signed by: TRILOK SINGH served through M/s Raj Security Force, Bhopal by way of an agreement. M/s Raj Security Force appointed them and deputed in the Nagar Palika under the outsourcing agreement, therefore, there was no employer- employee relation with him, hence the claim is liable to be dismissed. The learned labour court has discarded the aforesaid contention and held that the workman was directly appointed and paid by the Nagar Palika, hence the termination without payment of compensation is illegal and he is liable to be reinstated with full backwages. The similar nature of the award has been passed in case of other 11 workmen who filed the identical claim case. The Nagar Palika Nigam, Ujjain filed 17 miscellaneous petitions before this Court challenging the award.

5. After the notice in the petition, the Writ Court has allowed all the miscellaneous petitions on the ground that the Labour Court has not properly appreciated oral as well as documentary evidence that were produced on the record. Hence, the award passed in favour of the workmen is erroneous because merely payment of salary/wages from the bank account which is in the name of Municipal Corporation, does not bestow any right in favour of the workmen. The writ court has also observed that the appointment in the local bodies are governed under the M.P. Nagar Palika Nigam (Adhikariyon Evam Sevakon Ki Niyukti Evam Sewa Ki Sharten) Rules, 2000 and none of the appointments were made in accordance with the Rules. The workmen has not produced any evidence to show that they were appointed by following due process of law under Rules, 2000. Hence, set aside the award passed by the Labour Court. Now the workman has filed this writ appeal before this Court.

Signature Not Verified Signed by: TRILOK SINGH

6. Shri Mahesh Kumar Choudhary, learned counsel appearing for the appellants submits that Nagar Parishad comes under the category of “Industry” under the Industrial Dispute Act , therefore, the principle of ID Act are liable to be considered in this matter and not the Recruitment Rules of 2000. From 2016 to 2019 the appellant worked for 240 days, therefore, got the status and protection of permanent employee. Hence, the Labour Court has rightly