High CourtDivision BenchAppeal allowed; remitted to the Tribunal for fr...

MICROWAVE PROJECT, KOTA AND ANR. v. RAMESH CHAND

Case / Petition Number:Civil Appeal No. 2851 of 2005
Neutral Citation:[2007] 8 S.C.R.

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dr. Arijit Pasayat
  • S. H. Kapadia
Judgment Date
2007-07-18
Court Decision / Holding
Appeal allowed; remitted to the Industrial Tribunal Kota for fresh consideration to decide in light of the interrelationship between Sections 25-F and 2(oo)(bb); directions to dispose of the matter within four months; no orders as to costs.
Final Disposition
Appeal allowed; remitted to the Tribunal for fresh consideration; no costs.

Parties to the Case

Appellants / Petitioners

  • Microwave Project, Kota and ANR.

Respondents

  • Ramesh Chand

Legal Representation & Advocates

Counsels for Petitioners

  • • V. K. Shukla
  • • A. K. Tripathi
  • • K. K. Mohan

Counsels for Respondents

  • • Ajay Choudhary

Case Synopsis & Summary

The respondent, Ramesh Chand, was employed as a casual labourer for a specific project of the Microwave Project, Kota. He was engaged for a defined task (fixing nuts and bolts on microwave towers) and, upon completion of the project and commissioning of the towers, his services were terminated. The office of the Microwave Project at Kota was abolished due to the project’s completion, and the employment was casual in nature. The Labour Ministry forwarded the dispute under Section 10(1) of the Industrial Disputes Act to the Industrial Tribunal, Kota, seeking to determine whether the termination was justified and what relief the workman was entitled to. The Industrial Tribunal held that since the employee had worked for 240 days in the establishment, termination violated Section 25-F and amounted to retrenchment under Section 2(oo)(bb), awarding reinstatement with 30% back wages. The Rajasthan High Court upheld this order. The Supreme Court, however, allowed the appeal and remitted the matter to the Tribunal for fresh consideration, noting that the Tribunal and High Court lost sight of the essential issue: the interrelation between Sections 25-F and 2(oo)(bb) and the applicability of retrenchment to a project‑specific engagement. The Court directed the Tribunal to consider submissions and dispose of the matter within four months, ultimately allowing the appeal and reserving no costs.

Provisions of Law Cited

Section 25-F, Industrial Disputes Act, 1947Section 2(oo)(bb), Industrial Disputes Act, 1947

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants submitted that the engagement was for a fixed project; there is no dispute that the worker had completed more than 240 days, but since the project was fixed for a particular work, termination cannot be treated as retrenchment under s. 2(oo)(bb). They argued that the applicability of s. 25-F depends on whether s. 2(oo)(bb) applies to a project-specific engagement; the Tribunal’s reliance on 240 days and the conclusion that non-compliance with s. 25-F invalidated the termination were erroneous; the proper framing requires considering the project completion and the bifurcation of divisions, and re-examining the materials.

Contentions of Respondents

The respondent contended that the project was completed and termination after 240 days amounts to retrenchment under s. 2(oo)(bb), requiring compliance with s. 25-F; after completion of the project and bifurcation, the Tribunal's conclusions should be upheld to endorse the award given the statutory scheme.

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Extracted Judgment Text

Exact text extracted from official judgment records.

-": # MICROWAVE PROJECT, KOTA AND ANR. # _v._ RAMESH CHAND ## JUL y 18, 2007 ~ ~ # [DR. ARIJIT PASA YAT AND S.H. KAPADIA, JJ.] _Industrial Disputes Act. 1947:_ _ss. 25-F and 2(oo){bb)---Casual labourer appointed for spt!cific project and on completion of work relieved from job-Tribunal and High Court held_ c _that his termination was bad as there was violation of mandatory requirement of s.25-F-On appeal, held: Question of applicability of s. 25-F dependent upon the basic question relating to applicability of s. 2(oo){bb)-That aspect lost sight of-Matter remitted to tribunal._ -\ 4- _r_ > The respondent was engaged as a casual labourer for a specific project D by the appellants. After completion of the work and commissioning of the project, respondent was relieved from his job. The office of the appeilants was also abolished as there was no need of work. Respondent raised dispute challenging his termination. > The Industrial Tribunal held that since the respondent worked for 240 E days in the establishment of the appellant, his termination was bad as there was violation of the mandatory requirements of s. 25-F of the Industrial Disputes Act. Removal from service amounted to retrenchment under s. 2(oo) and ordered reinstatement ltith 30% back wages. High Court upheld the order. Hence the present appeal. F Allowing the appeal and remitting the matter to the tribunal, the Court ~ HELD: The Tribunal failed to consider the issue in proper perspective. The effect of s. 2(oo)(bb) of the Industrial Disputes Act, 1947 has been completely lost sight of. There was no dispute that the employment was for a G specific project There was no discussion of the various materials produced before the Tribunal. The orders of the High Court proceeded on the basis that because there was non-compliance with the requirement ofs. 25-F, the Award was justified. The question of the applicability of s. 25-F of the Act would be dependent upon the basic question relating to applicability of 403 H 404 -t-~ SUPREME COURT REPORTS [2007] 8 S.C.R. A[s.2(oo)(bb) ][of ][the Act. ][That ][aspect has been lost sight of. (Para ][6) ][(405-E, ] CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2851 of2005. From the Judgment & Order dated 04.02.2004 of the High Court of Judicature for Rajasthan, Bench at Jaipur in D.B. Special Appeal (Writ) No. B[194 ][of2000 ][with D.B. Civil Misc. Stay Application No. 1155 ][of2000 ][in ][S.B. ] Civil Writ Petition No. 4276 of 1999. ,. V.K. Shukla, A.K. Tripathi and K.K. Mohan for the Appellants. _+_ Ajay Choudhary for the Respondent. c The Judgment of the Court was delivered by D DR. ARIJIT PASAYA T, J. I. Challenge in this appeal is to the order passed by a Division Bench of the Rajasthan High Court, Jaipur Bench, dismissing the special leave filed by the appellant. . 2. Background facts in a nutshell are as follows: + Respondent was engaged as a casual labourer by the Assistant Engineer of the Microwave Project Borabas for the job of fixing of nuts and bolts in the Microwave Tower. After completion of the work and commissioning of the E[Microwave Towers, respondent was relieved from his ][job ][on 1.12.1987. Office ] of the Microwave, Kota, was also abolished as there was no need of work and in any event it was only of casual nature. Respondent raised a dispute to the effect that there was. termination of his services which is illegal. The Labour Ministry, Govt. oflndia vide order dated 30.9.1991 referred the following dispute under Section I 0( I) of the Industrial Disputes Act, 1947 (in short the F 'Act') to the Industrial Tribunal (Central) Kota, Rajasthan. G H "Whether the action of the AEN Microwave Project, Kota & LET, Jaipur in terminating the services of Shri Ramesh Chand, S/o Shri Jankidas, Casual Labour under AEN Microwave Project, Kota at Lawatbhata w.e.f. 1.12.1987 is justified? If not, to what relief the concerned workman is entitled?" 3. On behalf of the applicant it' was pleaded that he had been engaged as casual labourer on 8.12.1986 and, therefore, he having worked for more than 240 days in 12 calendar months could not have been terminated. The appellant took the stand that the respondent was engaged for doing a particular **==> picture [8 x 8] intentionally omitted <==** **----- Start of picture text -----**<br> ~<br>**----- End of picture text -----**<br> 405 MICROWAVE PROJECT, KOTA 1·. RAMESH CHAND[PASA YA T,J.] work on a casual labour basis. Since the establishment itself was closed after A . completion of the work there was no scope for accepting the prayer of the respondent. The Tribunal held that since the respondent worked for 240 days in the establishment of the present appellant, his termination will be bad as there was violation of the mandatory requirements of Section 25-F of the Act. Removal from service amounted to retrenchme.-t under Section 2( oo) of the B Act. With these conclusions it was held that the respondent was entitled to be re-employed to continue to be in service along with the 30% back wages. A writ petition was filed before the High Court. A learned Single Judge by a very cryptic order held that the Labour Court has held that there was violation of the requirements of Section 25-F of the Act and, therefore, there was no legality. The Division Bench came to the similar conclusions. C 4. In support of the appeal learned counsel for the appellant submitted that there is no dispute that the engagement was for a specific project. The Tribunal has categorically noted about these aspects but granted relief to the respondent. It was noted that the office of the present appellant was under the Jaipur Division and the new Kota Division has been created after D bifurcation of the Division. 5. In response, learned counsel for the respondent submitted that it should be accepted that the project has been completed, yet in view of the fact that there was bifurcation, the Tribunal was justified in its conclusion. 6. We find that the Tribunal failed to consider the issue~ in proper E perspective. The effect of Section 2(oo)(bb) has been completely lost sight of. There was no dispute that the employment was for a specific project. There was no discJssion of the various materials produced before the Tribunal. The orders of the High Court proceeded on the basis that because there was non-compliance with the requirements of Section 25-F. the Award was justified. F The question of the applicability of Section 25-F of the Act would be dependent upon the basic question relating to applicability of Section 2(oo)(bb) of the Act. That aspect has been lost sight of. We, therefore, think it appropriate to remit the matter to the Tribunal for fresh consideration. Parties will be permitted to place material in support of their respective stand. As the matter is pending since long, we request the Tribunal to dispose of the matter G within a period of four months from the date of receipt of the copy of this judg1nent. 7. Appeal is allowed with no orders as to costs. D.G. Appeal allowed. H