Case Note & Summary
The petitioner, Dena Bank, a banking company constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, challenged an award dated 5th June 2003 passed by the Central Government Industrial Tribunal No.1, Mumbai. The Tribunal had directed the bank to reinstate the respondent workman, Venu Gopal Naik, and absorb him permanently as a regular sepoy or equivalent post with 50% back wages from 15th August 1993. The respondent had worked as a 'badli sepoy' on daily wages for 93 days during the period from April 1993 to August 1993 at the Santa Cruz (E) branch of the bank, at a rate of Rs.25 per day. He was orally informed that his services would be discontinued from 15th August 1993. He wrote several letters seeking regularisation, which were declined. He then raised an industrial dispute. The Tribunal held that the respondent was entitled to reinstatement and permanent absorption. The bank contended that the respondent, having worked only for 93 days on a daily wage basis in a leave vacancy, was neither entitled to reinstatement nor absorption. The court examined the facts and found that the respondent had worked only for a short period of 93 days as a daily wager. The court held that such a short period of service does not create any right to regularisation or permanent employment. The Industrial Tribunal's award was therefore unsustainable. The court quashed the award and allowed the petition.
Headnote
A) Industrial Law - Regularisation of Daily Wage Workers - Badli Sepoy - 93 days of service as a badli sepoy on daily wages does not confer any right to regularisation or permanent absorption - The Industrial Tribunal erred in directing reinstatement and permanent absorption with 50% back wages - Held that the award is unsustainable and liable to be quashed (Paras 1-3).
Issue of Consideration
Whether a daily wage worker who worked for 93 days as a badli sepoy is entitled to reinstatement and permanent absorption as a regular employee.
Final Decision
The court allowed the writ petition, quashed the impugned award dated 5th June 2003, and set aside the direction for reinstatement and permanent absorption with 50% back wages.
Law Points
- Daily wage worker
- badli sepoy
- 93 days service
- no right to regularisation
- reinstatement not justified
- Industrial Tribunal award set aside
Case Details
2005 LawText (BOM) (07) 18
Writ Petition No.48 of 2004
Mr. S.K. Talsania with Mahesh Londhe i/b. Sanjay Udeshi & Co. for petitioner; Ms. Kunda Samant for respondent
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Nature of Litigation
Writ petition challenging an award of the Central Government Industrial Tribunal directing reinstatement and permanent absorption of a daily wage worker.
Remedy Sought
Petitioner bank sought quashing of the Tribunal's award directing reinstatement and permanent absorption with 50% back wages.
Filing Reason
The bank was aggrieved by the award which directed reinstatement and permanent absorption of the respondent who had worked only for 93 days as a daily wage badli sepoy.
Previous Decisions
The Central Government Industrial Tribunal No.1, Mumbai passed an award dated 5th June 2003 directing reinstatement and permanent absorption with 50% back wages.
Issues
Whether a daily wage worker who worked for 93 days as a badli sepoy is entitled to reinstatement and permanent absorption.
Submissions/Arguments
Petitioner bank argued that the respondent worked only for 93 days on daily wage basis in a leave vacancy and is not entitled to reinstatement or absorption.
Respondent workman argued that he was entitled to regularisation based on his 93 days of service.
Ratio Decidendi
A daily wage worker who has worked only for a short period of 93 days as a badli sepoy does not acquire any right to regularisation or permanent absorption. The Industrial Tribunal's award directing reinstatement and permanent absorption is unsustainable.
Judgment Excerpts
By the impugned award dated 5th June, 2003, the Central Government Industrial Tribunal No.1, Mumbai has directed the petitioner bank to reinstate the respondent workman and absorb him permanently as a regular sepoy or its equivalent post with 50% back wages from 15th August, 1993.
The grievance of the petitioner bank is that the respondent who had worked on daily wage basis for 93 days in a leave vacancy during the period from April, 1993 to August, 1993 is neither entitled for reinstatement nor entitled for absorption as a permanent employee of the bank.
Procedural History
The respondent raised an industrial dispute after his services were discontinued on 15th August 1993. The Central Government Industrial Tribunal No.1, Mumbai passed an award on 5th June 2003 directing reinstatement and permanent absorption with 50% back wages. The petitioner bank challenged the award by filing Writ Petition No.48 of 2004 before the Bombay High Court.
Acts & Sections
- Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970:
