Supreme Court Dismisses Petition for Regularisation of Daily-Rated Workmen — No Vacancies Available. The principle of regularisation applies only when workmen perform same duties as regular workers and vacancies exist.

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Case Note & Summary

The dispute involved daily-rated workmen of the National Mineral Development Corporation Ltd. who sought regularisation of their services and equal pay for equal work, asserting they performed the same duties as regular employees. The High Court of Madhya Pradesh dismissed their writ petition, concluding that the petitioners were not regular employees, lacked specific jobs, and were surplus to the establishment. The management contended that the petitioners had been retained on humanitarian grounds despite no available work, and they were incurring significant losses. The Supreme Court, upon reviewing the case, found no vacancies or work for the petitioners and upheld the High Court's decision. The court noted that the principle of regularisation applies only when a daily-rated worker performs the same work as a regular worker and there is a vacancy. The court directed that the petitioners be offered benefits under a Voluntary Retirement Scheme, which some had already accepted, and dismissed the special leave petition without costs.

Headnote

A) Labour Law - Regularisation of Daily-Rated Workmen - Principle of regularisation arises only when workmen perform same duties as regular workers and vacancies exist - Labour and Services Act, Not mentioned - The court held that regularisation is contingent upon the availability of work and vacancies, which were absent in this case. (Paras 619-620).

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Issue of Consideration

Whether daily-rated workmen are entitled to regularisation and equal pay for equal work.

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Final Decision

The Supreme Court dismissed the special leave petition, affirming the High Court's findings that there were no vacancies or work available for the petitioners. The court directed that the petitioners be given the benefit of the Voluntary Retirement Scheme.

Law Points

  • Regularisation of daily-rated workmen
  • Equal pay for equal work
  • Voluntary retirement scheme
  • Humanitarian grounds for retention
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Case Details

1990 LawText (SC) (08) 15

Civil Appeal No. 12317 of 1987

1990-08-06

L.M. Sharma, Jagdish Saran Verma, K. Jayachandra Reddy

1990 AIR 2054, 1990 SCR (3) 618, 1990 SCC (4) 163, JT 1990 (3) 374, 1990 SCALE (2) 169

M.K. Ramamurthy, A.K. Sanghi, Vinod Bobde, P.S. Nair, K.V. Sreekumar

Satyanarayan Sharma and Ors.

National Mineral Development Corporation Ltd. and Ors.

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Nature of Litigation

Writ petition for regularisation and equal pay by daily-rated workmen.

Remedy Sought

Regularisation of services and equal pay for equal work.

Filing Reason

Claim of performing same duties as regular workers.

Previous Decisions

High Court dismissed the writ petition, finding no vacancies or specific jobs for the petitioners.

Issues

Entitlement to regularisation of daily-rated workmen Applicability of equal pay for equal work principle

Submissions/Arguments

Petitioners claimed regularisation and equal pay based on performing same duties as regular workers. Respondents argued no vacancies existed and petitioners were surplus to requirements.

Ratio Decidendi

Regularisation of daily-rated workmen and equal pay for equal work is contingent upon the performance of the same duties as regular workers and the existence of vacancies.

Judgment Excerpts

The principle of regularisation of a daily-rated workman and payment to him of the pay equal to that of a regular workman arises only when he is doing the same work as the regular workman and there being a vacancy available for him. The question of directing their absorption and regularisation, therefore, does not arise.

Procedural History

The petitioners filed a writ petition in the High Court of Madhya Pradesh, which was dismissed on 2.9.1987. The petitioners then filed a special leave petition in the Supreme Court.

Acts & Sections

  • Labour and Services:
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