Case Note & Summary
The case involved an appeal by Allahabad Bank against an award of the Industrial Tribunal, New Delhi, which had held that the respondent workman was entitled to deemed continuous employment. The dispute arose from the bank's refusal to employ the respondent as a cash clerk after 17 June 1977. The respondent had been appointed on a temporary basis for one day at a time through letters issued on 13, 14, and 15 June 1977, covering work at Lajpat Nagar, Karol Bagh, and Chandni Chowk branches on 14, 15, 16, and 17 June 1977 respectively. Each appointment letter stated that the appointment was purely temporary for one day and that service would stand terminated automatically without notice. The bank contended that the respondent lacked the requisite educational qualification, having not passed matriculation, and that he had misrepresented his qualifications. The Industrial Tribunal framed issues regarding qualification and whether the referral was an industrial dispute. In its award dated 29 May 1980, the Tribunal found that the respondent had failed in the higher secondary examination (Class XI) in April 1954 but held that an Xth class certificate from a higher secondary school was equivalent to matriculation for central government employment. Consequently, it concluded that the denial of employment amounted to illegal termination and directed that the respondent be deemed in continuous service from 16 June 1977 until the date of the award. Before the Supreme Court, the appellant argued that the respondent was a daily wager whose contract terminated automatically at the end of each day, and the bank had no legal obligation to continue employing him. The respondent's case rested on the equivalence of his educational qualification and the claim that denial of employment was an illegal termination. The Supreme Court held that the relationship between the parties was contractual, with each appointment being for a fixed period of one day, and the service stood terminated at the end of each day. The Court noted that even if the bank's reason for not employing the respondent was incorrect, there was no legal obligation to employ him. The Tribunal had not identified any such obligation. The Court concluded that the respondent could not insist on continued employment and the bank was under no legal duty to provide it. Accordingly, the Supreme Court set aside the award, allowed the appeal, and directed no order as to costs.
Headnote
A) Labour Law - Termination of Temporary Employee - Fixed-Term Appointment - Industrial Disputes Act, 1947, Section 10 - Employment was for one day at a time and automatically terminated at day's end; the workman was a daily wager with no right to continued service; denial of further employment did not amount to termination of existing services. Held that the Tribunal's direction of deemed continuation was untenable (Paras Not mentioned). B) Labour Law - Recruitment Conditions - Educational Qualification Equivalence - Industrial Disputes Act, 1947, Section 10 - The Supreme Court did not decide whether the workman's Xth class certificate was equivalent to matriculation; even assuming the bank's reason for non-employment was incorrect, it was under no legal obligation to employ the daily wager. Held that the issue of qualification was immaterial to the outcome (Paras Not mentioned).
Issue of Consideration
Whether denial of further employment to a temporary employee appointed for fixed one-day periods amounts to illegal termination and gives a right to relief under the Industrial Disputes Act, 1947.
Final Decision
The Supreme Court allowed the appeal, set aside the Industrial Tribunal's award dated 29 May 1980, and held that the respondent was neither entitled to demand employment nor entitled to any other relief; no order as to costs.
Law Points
- Temporary appointment for fixed one-day period terminates automatically
- daily wager has no legal right to continued employment
- non-renewal of fixed-term contract does not amount to termination of existing services
- Section 10 Industrial Disputes Act
- 1947
