Bombay High Court Dismisses Writ Petitions Seeking Permanency for LIC Apprentices — Apprentices Act, 1961 Overrides Industrial Disputes Act. Apprentices engaged under a statutory scheme are not employees and have no right to absorption.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The petitioners, engaged as apprentices by the Life Insurance Corporation of India (LIC) under the Apprentices Act, 1961, filed writ petitions seeking a mandamus to direct LIC to absorb them as permanent employees and a certiorari to strike down a clause in their engagement letters that stated they would have no claim for permanent employment. The Bombay High Court dismissed both petitions. The court held that the Apprentices Act, 1961 is a complete code governing apprentices, and Section 18 of the Act gives it overriding effect over other laws, including the Industrial Disputes Act, 1947. Consequently, apprentices are not workmen under the Industrial Disputes Act and have no employer-employee relationship with LIC. The engagement letters clearly stated the terms, and the petitioners accepted them without protest. The court further held that writ jurisdiction under Article 226 is not ordinarily exercisable for contractual disputes, especially when the contract itself excludes the relief sought. The court also noted that the petitioners had an alternative remedy under the Industrial Disputes Act, but even that would not avail them as they are not workmen. The petitions were dismissed with no order as to costs.

Headnote

A) Apprentices Act, 1961 - Section 18 - Overriding Effect - Apprentices Act overrides Industrial Disputes Act, 1947 - The Apprentices Act, 1961 is a complete code governing apprentices, and Section 18 provides that the Act shall have effect notwithstanding anything inconsistent in any other law. Therefore, apprentices engaged under the Act are not workmen under the Industrial Disputes Act and have no right to claim permanency. (Paras 10-12)

B) Apprenticeship - Employer-Employee Relationship - No master-servant relationship - An apprentice is a trainee, not an employee. The engagement letters clearly state that the apprentice is not entitled to any claim for permanent employment. The relationship is governed by the Apprentices Act, 1961 and the contract of apprenticeship, not by industrial law. (Paras 13-15)

C) Writ Jurisdiction - Contractual Disputes - Not maintainable - The petitioners sought enforcement of contractual terms of apprenticeship, which is a private law matter. The High Court under Article 226 does not ordinarily entertain disputes arising out of contracts, especially when the contract itself excludes any right to permanency. (Para 16)

D) Industrial Disputes Act, 1947 - Section 2(s) - Workman - Apprentice not a workman - An apprentice engaged under the Apprentices Act is not a workman under the Industrial Disputes Act, as the primary purpose is training, not employment. Hence, provisions of the Industrial Disputes Act regarding permanency do not apply. (Paras 10-12)

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Issue of Consideration

Whether apprentices engaged under the Apprentices Act, 1961 are entitled to be absorbed as permanent employees of LIC and whether the engagement letters' clause excluding permanency is valid.

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Final Decision

Both writ petitions are dismissed. No order as to costs.

Law Points

  • Apprentices Act
  • 1961
  • Section 18 overrides Industrial Disputes Act
  • 1947
  • Apprentice is not a workman
  • No employer-employee relationship
  • No right to permanency
  • Writ petition not maintainable for contractual disputes.
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Case Details

2016:BHC-AS:20187-DB

Writ Petition No. 4495 of 2016 with Writ Petition No. 5365 of 2016

2016-08-18

Anoop V. Mohta, G.S. Kulkarni

2016:BHC-AS:20187-DB

Mr. Gopal K.S. Hegde with Ms. Pinky Bhansali for Petitioners; Mr. S. K. Talsania, Senior Advocate with Mr. R.K. Cheulkar for Respondent

Shri Tushar Gajanan Savlajkar & Ors. (in WP 4495/2016); Shri Harshal Ramesh Darwade & Ors. (in WP 5365/2016)

Life Insurance Corporation of India

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Nature of Litigation

Writ petitions seeking mandamus for absorption as permanent employees and certiorari to strike down clause in engagement letters.

Remedy Sought

Petitioners sought direction to LIC to absorb them as permanent employees and to strike down the clause in engagement letters that excluded any claim for permanent employment.

Filing Reason

Petitioners were engaged as apprentices under the Apprentices Act, 1961 and claimed they were entitled to permanency after completing training.

Issues

Whether apprentices under the Apprentices Act, 1961 are entitled to be absorbed as permanent employees? Whether the clause in engagement letters excluding permanency is valid? Whether writ petition is maintainable for contractual disputes?

Submissions/Arguments

Petitioners argued that they were workmen under the Industrial Disputes Act and entitled to permanency as per industrial law. Respondent LIC argued that the Apprentices Act overrides other laws, and apprentices are not employees; the engagement letters clearly stated no claim to permanency.

Ratio Decidendi

The Apprentices Act, 1961 is a complete code governing apprentices, and Section 18 gives it overriding effect over other laws. Apprentices are not workmen under the Industrial Disputes Act, and there is no employer-employee relationship. Hence, they have no right to claim permanency. Writ jurisdiction is not available for contractual disputes where the contract itself excludes the relief sought.

Judgment Excerpts

The Apprentices Act, 1961 is a complete code in itself and Section 18 of the Act gives it an overriding effect over any other law for the time being in force. An apprentice is not a workman and there is no employer-employee relationship between the apprentice and the establishment. The engagement letters clearly state that the apprentice shall have no claim for permanent employment.

Procedural History

The petitions were filed directly in the High Court under Article 226 of the Constitution. They were heard together and disposed of by a common judgment.

Acts & Sections

  • Apprentices Act, 1961: Section 18
  • Industrial Disputes Act, 1947: Section 2(s)
  • Constitution of India: Article 226
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High Court Bombay High Court Dismisses Writ Petitions Seeking Permanency for LIC Apprentices — Apprentices Act, 1961 Overrides Industrial Disputes Act. Apprentices engaged under a statutory scheme are not employees and have no right to absorption.
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