Bombay High Court Upholds Industrial Tribunal Award Granting Permanency to Casual Workmen in Industrial Disputes Act Case — Workmen with 3-11 Years of Service Entitled to Permanent Status Despite Breaks in Service.

High Court: Bombay High Court Bench: BOMBAY In Favour of Accused
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Case Note & Summary

The petitioner, M/s. Permanent Magnets Ltd., challenged an Award of the Industrial Tribunal dated 13th November 2002 in a reference under Section 10 of the Industrial Disputes Act, 1947. The State Government had referred an industrial dispute regarding the demand for permanency of 43 casual workmen. During the pendency of the reference, some workmen resigned or withdrew their claims, leaving only 18 workmen. The Tribunal directed the petitioner to grant permanency to these 18 workmen with effect from the date of reference (29th October 1993) and to pay them wages and extend other facilities available to permanent workmen. The basis of the claim was that the workmen had worked for periods ranging between 3 and 11 years, attending to work of a permanent nature, but were not granted permanency. They alleged that they were given breaks in service and new casual workmen were appointed in their place. The management contended that it had 233 permanent workmen and a pool of 65 casual workers, and that the casual workers were engaged only when permanent workmen were absent or on leave. The management also claimed that 21 persons named in the schedule were not on their rolls. The High Court, in its oral judgment, upheld the Tribunal's award, finding no perversity or error of law. The court noted that the Tribunal had considered the evidence and concluded that the workmen had worked for long periods and the nature of work was permanent. The High Court dismissed the writ petition, holding that the award did not warrant interference under writ jurisdiction.

Headnote

A) Industrial Law - Permanency of Casual Workmen - Section 10, Industrial Disputes Act, 1947 - The Industrial Tribunal directed the employer to grant permanency to 18 casual workmen who had worked for periods ranging between 3 and 11 years, despite breaks in service, holding that the nature of work was permanent and the breaks were artificially created to deny permanency. The High Court upheld the award, finding no perversity or error of law warranting interference under writ jurisdiction. (Paras 1-3)

B) Industrial Law - Breaks in Service - Section 10, Industrial Disputes Act, 1947 - The Tribunal found that the workmen were given breaks in service and new casual workmen were appointed in their place, which indicated an attempt to circumvent permanency. The High Court affirmed that such breaks do not defeat a claim for permanency when the work is of a permanent nature and the workmen have rendered continuous service for a long period. (Paras 2-3)

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Issue of Consideration

Whether the Industrial Tribunal was justified in directing the grant of permanency to 18 casual workmen with effect from the date of reference, despite the management's contention that they were engaged only to fill temporary vacancies and that breaks in service disentitled them to permanency.

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Final Decision

The High Court dismissed the writ petition and upheld the Industrial Tribunal's award directing the petitioner to grant permanency to the 18 workmen with effect from 29th October 1993 and to pay them wages and other benefits available to permanent workmen.

Law Points

  • Permanency
  • Casual workmen
  • Breaks in service
  • Industrial Disputes Act
  • 1947
  • Section 10
  • Reference
  • Industrial Tribunal
  • Award
  • Writ petition
  • Judicial review
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Case Details

2006 LawText (BOM) (08) 79

WRIT PETITION NO.1709 OF 2003

2006-08-23

Dr. D.Y. Chandrachud, J.

Mr. M. S. Naik with Mr. S.K. More i/b. S.M. Naik for the Petitioner, Mr. N. M. Ganguli for Respondent No.1

M/s. Permanent Magnets Ltd.

The workmen Employed & Anr.

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Nature of Litigation

Writ petition challenging an Award of the Industrial Tribunal granting permanency to casual workmen.

Remedy Sought

The petitioner (employer) sought to quash the Tribunal's award directing permanency to 18 workmen.

Filing Reason

The employer challenged the Tribunal's award on the ground that the workmen were not entitled to permanency as they were engaged only to fill temporary vacancies and had breaks in service.

Previous Decisions

The Industrial Tribunal passed an award on 13th November 2002 directing permanency to 18 workmen with effect from 29th October 1993.

Issues

Whether the Industrial Tribunal erred in granting permanency to casual workmen who had breaks in service. Whether the High Court should interfere with the Tribunal's award under writ jurisdiction.

Submissions/Arguments

The petitioner argued that the workmen were casual workers engaged only when permanent workmen were absent, and that breaks in service disentitled them to permanency. The respondent workmen contended that they had worked for 3-11 years on permanent nature of work and were denied permanency through artificial breaks.

Ratio Decidendi

The High Court held that the Industrial Tribunal's award was based on evidence and findings of fact, and no perversity or error of law was shown to warrant interference under writ jurisdiction. The workmen having worked for long periods on permanent nature of work were entitled to permanency despite breaks in service.

Judgment Excerpts

This petition is directed against an Award of the Industrial Tribunal dated 13th November 2002 in a reference to adjudication under Section 10 of the Industrial Disputes Act, 1947. The basis of the claim before the Industrial Tribunal was that a majority of the workmen... have been working for periods ranging between 3 and 11 years and, though they were attending to work of a permanent nature, they had not been granted the benefit of permanency.

Procedural History

The State Government referred an industrial dispute regarding permanency of 43 casual workmen to the Industrial Tribunal under Section 10 of the Industrial Disputes Act, 1947. During the reference, some workmen resigned or withdrew, leaving 18 workmen. The Tribunal passed an award on 13th November 2002 directing permanency to those 18 workmen. The employer filed a writ petition in the High Court challenging the award, which was stayed during pendency. The petition was heard and finally disposed of on 23rd August 2006.

Acts & Sections

  • Industrial Disputes Act, 1947: Section 10
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High Court Bombay High Court Upholds Industrial Tribunal Award Granting Permanency to Casual Workmen in Industrial Disputes Act Case — Workmen with 3-11 Years of Service Entitled to Permanent Status Despite Breaks in Service.
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