High CourtDivision BenchSLPs dismissed; High Court’s judgment upheld; n...

Sri Ram Industrial Enterprises Ltd. v. Mahak Singh and Ors.

Case / Petition Number:Special Leave Petition (C) Nos. 16456-16460 of 2005
Neutral Citation:[2007] 3 S.C.R. 783

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dr. A. R. Lakshmanan
  • Altamas Kabir
Judgment Date
2007-03-08
Court Decision / Holding
SLPs dismissed; High Court’s judgment affirmed; no interference with the orders directing reinstatement and back wages as appropriate were left to be determined by the Tribunal, but the Supreme Court ultimately dismissed the Special Leave Petitions; no costs.
Final Disposition
SLPs dismissed; High Court’s judgment upheld; no interference with the High Court’s directions; no order as to costs.

Parties to the Case

Appellants / Petitioners

  • Sri Ram Industrial Enterprises Ltd.

Respondents

  • Mahak Singh and Ors.

Legal Representation & Advocates

Counsels for Petitioners

  • • Ashok Desai
  • • Jayant Bhushan
  • • Meera Mathur

Counsels for Respondents

  • • K. V. Yishwanathan
  • • Devvrat
  • • Nikhil Majithia
  • • Rajeev Singh
  • • Anish Kumar Gupta

Case Synopsis & Summary

This is a Special Leave Petition arising from five Allahabad High Court writ petitions challenging Industrial Tribunal awards related to retrenchment under the Uttar Pradesh Industrial Disputes Act, 1947. The workmen claimed illegal retrenchment, contending they had continuously worked from their date of appointment for 240 days in a calendar year until termination. They produced bonus slips, provident fund records, attendance cards, and other documents; the employer produced only an extract of the attendance record for the 12 months immediately preceding retrenchment, showing none of the workers had crossed 240 days in that year. The Tribunal ruled in favor of the employer, but the High Court reversed, drawing an adverse inference under Section 114 Illustration (g) of the Indian Evidence Act for non-production of attendance registers and muster rolls since 1991, and held retrenchment violative of Section 6-N read with Section 2(g). The management challenged the High Court’s judgment in the Supreme Court. The Court analyzed the interpretation of continuous service, clarifying that under Section 2(g) of UP Act, the 240-day requirement may be satisfied in any calendar year during the period of service, not exclusively in the year immediately preceding termination. It upheld the High Court’s approach, accepted the adverse inference due to non-production of records, and ultimately dismissed the Special Leave Petitions, with no order as to costs. The decision also reinforces judicial review power under Article 227 and the burden of proof on the workman in demonstrating 240 days of work in a year.

Provisions of Law Cited

U.P. Industrial Disputes Act, 1947, s. 2(g)U.P. Industrial Disputes Act, 1947, s. 6-NIndian Evidence Act, 1872, s. 114 Illustration (g)Constitution of India, Arts. 226 and 227U.P. Industrial Disputes Act, 1947, s. 4KIndustrial Disputes Act (Central) 1947, s. 25FCentral Act s. 25B(2)(a)(ii)UP Act, s. 258(2)(a) and (ii)

Legal Doctrines & Maxims

  • Burden of proof lies on the workman to show that he had worked for 240 days in a calendar year (Range Forest Officer v. S.T. Hadimani)
  • Adverse inference under Section 114, Illustration (g), Indian Evidence Act for non-production of evidence (best evidence withheld)
  • Continuous service means uninterrupted service, including certain interruptions such as sickness, authorized leave, or non-illegal strikes/lockouts, and that 240 days in any calendar year can constitute continuous service (UP Act interpretation)
  • Judicial review under Article 227 of the Constitution is wide and can interfere with findings of fact to ensure proper discharge of duties by inferior courts/Tribunals
  • Interplay and distinction between UP Act continuous service (Section 2(g), 6-N) and Central Act provisions (Section 25B, 25F) regarding retrenchment requirements

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner-management contended that the respondents had not completed 240 days of continuous service in the year immediately preceding the alleged retrenchment; the sugar industry is seasonal, so most workers are engaged as casuals; the Tribunal correctly based its finding on the last 12 months, and the attendance registers for earlier years were irrelevant. It was argued that Section 25F and the Central Act provide conditions precedent to retrenchment, which the management claimed were not violated since the workmen had no right to continuity beyond the actual 240-day threshold in any given year.

Contentions of Respondents

The respondents/workmen argued that continuous service under UP Act 1947 means uninterrupted service during which they worked not less than 240 days in any calendar year, not necessarily the year immediately before termination, as the word 'preceding' is excluded from Section 2(g). They relied on attendance records, muster rolls, and other documents to prove the 240-day threshold across any year during service. They insisted that the best evidence was withheld and that non-production should attract an adverse presumption under Section 114, Illustration (g). They also contended that Article 226/227 vindicate their claims and that retrenchment without compliance with Section 6-N is unlawful.

Cited Precedents (9)

Case NameCitationTreatmentExplanation
U.P. Drugs and Pharmaceuticals Company Ltd. v. Ramanuj Yadav and Ors.[2003] 8 SCC 334PositiveUsed to interpret Section 2(g) and hold that continuous service may be proven over any year, not strictly the year preceding termination.
Range Forest Officers v. S.T. Hadimani[2002] 3 SCC 25PositiveCited for burden of proof on the workman to show 240 days; later views in Yellatty’s case are noted as having watered down this position.
Municipal Corporation, Faridabad v. Siri Niwas[2004] 8 SCC 195PositiveFollowed for the burden of proof and 25F-type considerations.
Surendranagar District Panchayat v. Dahyabhai Amarsinh[2005] 8 SCC 750PositiveCited for reiterating that the burden rests on the workman to show 240 days.
RBI v. S. Mani[2005] 5 SCC 300PositiveAffirmed that affidavits alone are insufficient and evidence must be cogent.
Trambak Rubber Industries Ltd. v. Nashik Workers Union and Ors.[2003] 6 SCC 416PositiveSupport for judicial review under Article 227 and the wider review power; not a direct reversal of findings.
Rajasthan State Ganganagar Mills Ltd. v. State of Rajasthan and Anr.[2004] 8 SCC 161PositiveCited among authorities reinforcing the burden/evidence framework around 240 days.
M.P. Electricity Board v. Hariram[2004] 8 SCC 246PositiveReferred to in context of the duty to prove 240 days and related principles.
R.M. YeIlatty v. Assistant Executive Engineer[2006] 1 SCC 106PositiveUsed to illustrate the evolving understanding of the burden of proof and reliance on cogent evidence.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# MIS. SRI RAM INDUSTRIAL ENTERPRISES LTD. " MAHAK SINGH AND ORS. ## MARCH 8, 2007 [DR. AR. LAKSHMANAN AND AL TAMAS KABIR, JJ.] _U.P. Industrial Disputes Act, 1947-ss. 2(g) and 6-N-Workmen with 4 years service-Retrenched-Dispute-Workmen filing documents showing their continuous service-Sought production of Attendance Register and other_ C _documents from Management-Production of extract of attendance record of one year immediately preceding the retrenchment showing non-completion of 240 days in that year-Non-production of other documents-Award by the Tribunal against the workmen-Writ Petition-Award set aside drawing adverse presumption against the management for non-production of documents in its possession, holding that management failed to discharge its onus-On_ D _appeal, held: High Court rightly set aside the award-Management failed to discharge its onus by non-production of documents-Workmen had discharged their initial onus by production of the documents in their possession-The condition precedent for retrenchment under the act is continuous service of 240 days in any calendar year during service and not the immediate preceding_ E _year ji·om the date of retrenchment-Labour Laws-Retrenchment-Evidence Act, 872-S. 114 illustration (g)-Evidence-Burden of proof_ _Constitution of India, 1950-Articles 226 and 227-Writ jurisdiction-Judicial review-Of finding of facts by courts be/ow-Scope of-Held: In appropriate cases finding of facts can be interfered with-The powers of_ F _judicial review under Article 227 empowered the High Court to ensure that inferior courts properly discharged their duties and obligations._ _Words and Phrases: 'Continuous service'-Meaning of in the context of U.P. Industrial Disputes Act, 1947._ G An industrial dispute, with regard to retrenchment of the workmenrespondents was referred to the Industrial tribunal. The case of the workmen was that they were illegally retrenched as they had continuously worked from the date of their appointment for more than 240 days in a calendar year till H 783 [2007] 3 S.C.R. 784 ## SUPREME COURT REPORTS - A the termination of their services. Respondents produced bonus and wage slips, deduction of Provident Fund slips, attendance cards of various months and other documents available with them. They filed an application asking the management-petitioner to produce the documents in its custody i.e. Attendance Register, Payment of Bonus record and other documents relating to t • - B engagement of the respondents as workmen. Petitioner produced only the extract of the attendance record of the last 12 calender months immediately preceding the date of their retrenchment showing that none of the workmen had worked for more than 240 days during the said period. Petitioner did not assign any cogent reason for not producing the Attendance Register of the previous years. Tribunal passed the award in favour of the management finding - C that the workmen had not put in 240 days of service in the calender year preceding the termination of their sen·ices. In Writ Petition against the award, High Court held, that in view of the non-production of the documents, the petitioner failed to discharge the onus D and disprove the workmen's' claim, and hence tribunal should have drawn an adverse presumption under Section 114 illustration (g) of Evidence Act against the petitioner and that in view of the expression "continuous service" under Section 2(g) ofU.P. Industrial Disputes Act, 1947, termination of the services of the workmen was in violation of Section 6 N of the U.P. Act. High Court E directed reinstatement of the workmen with continuity of service and halfback wages w.e.f. the date of their illegal retrenchment. Hence the present appeal. """ ## Dismissing the appeal, the Court HELD: I.I The exclusion of the word "preceding" from Section 2 (g) of F the U.P. Industrial Disputes Act, 1947 indicates that a workman in order to be in continuous service may have worked continuously for a period of 240 days in any calendar year during his period of service. [Para 30[ (795-G] _U.P. Drugs and Pharmaceuticals Company ltd_ v. _Ramanuj Yadav and Ors._ [2003[ 8 SCC 334, relied on. G 1.2 In the light of the case made out by respondents that they had never worked as temporary hands but had worked continuously from the date of their appointment till the date of their retrenchment, without break, the T dbunal was persuaded on behalf of the petitioner to decide the case of the workmen H on the basis of the materials produced by the petitioner for the year preceding '° 785 SRI RAM INDUSTRIAL ENTERPRISES LTD. 1·. MAHAK SINGH the date of termination of their services from which it was shown that the workmen had not completed 240 days of continuous service in the said year. The said approach was erroneous. The petitioner had wrongly described the documents relating to attendance for the years 1991 cowards as far as the respondents are concerned, as being irrelevant. !Paras 30, 31and321 _U.P. Drugs and Pharmaceuticals Company Ltd._ v. _Ramanuj Yadav and_ B _Ors._ 12003] 8 SCC 334, relied on. > 1.3 High Court adopted the correct approach while deciding the controversy between the parties upon a correct understanding of the law as . contained in Section 6N read with Section 2(g) of the U. P. Act which is applicable to these petitions. Having correctly interpreted the provisions of C Section _6N_ of the U.P. Act, the High Court rightly drew an adverse presumption for non-production of the Attendance Registers and the Muster Rolls for the years 1991 onwards. The best evidence having been withheld, the High Court was entitled to draw such adverse inference. The workmen had discharged th~ir initial onus by production of the documents in their possession. D !Paras 33 and 34] (796-E, F, G] _R.M Ye/latty_ v. _Assistant Executive Engineer,_ 1200611 SCC 196, relied on. _Range Forest Officers_ v. _ST. Hadmimani,_ 12002] 3 SCC 25, referred to. E _:._ 2. In appropriate cases, the High Court in Writ Jurisdiction could interfere with the findings of fact of the courts below. In any event, the powers of judicial review of the High Court under Article 227 of the Constitution are very wide and it empowered the High Court to ensure that the courts and tribunals, inferior to the High Court, discharged their duties and obligations. F (Para 25] _Trambak Rubber Industries Ltd_ v. _Nashik Workers Union and Ors._ (2003] 6 sec 416, relied on. CIVIL APPELLATE JURISDICTION : Special Leave Petition (C) Nos. 16456-16460 of2005. From the Judgment and Order dated 15.4.2005 of the High Court of Judicature at Allahabad in C.W.P. No. 20490, 26563, 26563, 26564 and 26567 of 1999. H SUPREME COURT REPORTS [2007] 3 S.C.R. 786 A Ashok Desai and Jayant Bhushan, Meera Mathur for the Appellant. ~ . K.V. Yishwanathan, Devvrat, Nikhil Majithia, Rajeev Singh and Anish Kumar Gupta for the Respondents. The Judgment of the Court was delivered by **B** **ALT AMAS KABIR, J.** I. Five different writ petitions were filed by the different respondents in these special leave petitions before the High Court of Judicature at Allahabad against the awards made by the Industrial Tribunal on 20th June, 1998. The said writ petitions having been allowed by a common judgment dated 15th April, 2005, the petitioner herein, which was the common respondent in all the writ petitions, has filed these special leave petitions questioning the judgment and order of the Allahabad High Court. c 2. The writ petitioners/respondents herein claimed to have been appointed by the petitioner between the years 1987-1991 and it is their case **D**[that ][they ][worked ][continuously ][from ][the ][date ][of their appointment ][till ][they ] were retrenched in the years 1994 and 1995 respectively. The specific case made out by the respondents is that although they have worked continuously from the date of their appointment for more than 240 days in a calendar year, they have been illegally retrenched from service in violation of the provisions of Section 6 N of the U.P. Industrial Disputes Act, 1947 (for short 'the U.P. E Act'). E 3. The respondents.raised a dispute relating to their retrenchment which was ultimately referred by the State Government to the Tribunal under Section 4 K of the aforesaid Act to determine as to whether the termination of the **F**[services of ][the ][workmen ][by ][the ][employer ][was ][just ][and/or ][illegal. ][Pursuant ][to ] the said References, five separate Adjudication Cases, being Nos. 134, 139, 132, 129 and 127 of 1995 were registered by the Presiding Officer, Industrial Tribunal (V), U.P. 4. In support of their contention that they had been illegally retrenched, G the respondents submitted that not only had they worked continuously from the date of their appointment till their services were terminated, but that they had been allowed grade number and provident fund number and other service benefits. It is also the case of the respondents that as they had demanded other benefits to which they were entitled, their services were terminated **H**[without ][any ][notice ][and ][compensation ][being ][given ][to ][them. ][They ][accordingly ] _).__ t SRIRAM INDUSTRIAL ENTERPRISES LTD. r. MAHAK SINGH [AL TAMAS KABIR. J.] 787 claimed reinstatement in service with all back wages. 5. The case of the petitioner herein is that since the sugar industry is a seasonal industry, most of the work force are engaged as casual and temporary hands during the operational season and that this state of affairs is common to the entire sugar industry. It was also the case of the petitioner that the real dispute was not with regard to the termination of the services B of the workmen, but with regard to their claim for regularisation of their services. It was also the case of the petitioner that the services of the workmen had never been terminated since none of them had worked for 240 days in the last 12 calendar months immediately preceding their alleged date of termination. c 6. As recorded by the Tribunal, the respondents had produced bonus slips, wage slips, deduction of provident fund slips and attendance cards for various months and other documents available to them. They had also requested the petitioner herein to produce certain documents which were in its custody and iucluded the Attendance Register, payment of bonus record D and various other documents relating to the engagement of the respondents as workmen under it. Admittedly, on behalf of the petitioner herein, only the extract of the attendance record of the last 12 calendar months of the workmen immediately preceding the date of their retrenchment had been produced from which it was evident that none of the workmen had worked for more than 240 E days during the said period. The Tribunal also noted that the petitioner had failed to assigr. any cogent reason for not producing the Attendance Registers of the previous years and allowed the workmen to lead secondary evidence in support of their case. E 7. The Tribunal did not lay any importance to the non-production of the F documents asked for on the ground that the petitioner did not keep such record relating to the temporary hands and relied on the documents that had been produced to come to a finding that the workmen had not put in 240 days of service in a calendar year preceding the termination of their services. 8. Being aggrieved by the awards passed by the Tribunal, the workmen G filed separate writ petitions praying for quashing of the impugned awards and declaring their retrenchment to be illegal, together with a prayer to reinstate them in service with full back wages and continuity of service. 9. Drawing an adverse inference against the petitioner herein for non- H [2007] 3 S.C.R. SUPREME COURT REPORTS 788 A production of the documents in its possession and holding that the petitioner had failed to discharge the onus and disprove the workmens' claim, the High Court held that under the circumstances the Tribunal should have drawn an adverse presumption under Section 114 Illustration (g) of the Indian Evidence Act, 1872 against the petitioner. Taking further note of the expression "continuous service" under Section 2(g) of the U.P. Act, the High Court B found that the termination of service of the workmen was in violation of Section 6N of the aforesaid Act. Basing its decision on its aforesaid findings, the High Court quashed the awards passed in the adjudication cases referred to above and directed the petitioner herein to reinstate the workmen/ respondents herein with continuity of service and half back wages with effect C from 1995, being the date of their illegal retrenchment. These special leave petitions have been filed against the common judgment of the High Court by which the five writ petitions were disposed of with the above-mentioned directions. I 0. The case made out by the petitioner herein before the Tribunal and D the High Court was reiterated by Mr. Ashok Desai, learned senior advocate, appearing for the petitioner. The main thrust of his submission was that since the respondents had not completed 240 days of service in the year preceding the date of alleged termination, the High Court had erroneously reversed the findings of the Tribunal on such score. Mr. Desai reiterated the contention E of the petitioner that work in the sugar industry was of a seasonal nature and most of the work force was engaged as casual labour on a temporary basis, which was generally confined to six to seven months in a year. Mr. Desai submitted that the Tribunal had correctly assessed the situation and the High Court by drawing an adverse presumption for non-production of the Attendance Register of prior years, had erroneously arrived at the conclusion F that the respondents-workmen had, in fact, worked for more than 240 days in a calendar year prior to termination of their services. I I. Mr.Desai submitted that it is settled- l!iw that the onus of proof of having worked for 240 days within a calendiir year is on the employee. G According to Mr. Desai, the employee was requ~d to discharge the burden of proving that he had actually worked for 240 days in ., a calendar year, but the High Court had wrongly shifted the onus on the employer in contravention of the law as laid down by this Court in _Range Forest Officer_ v. _S.T. Hadimani,_ reported in (2002] 3 SCC 25. In the said case, this Court while considering a similar issue observed as follows:- ~ • .i. t H SRI RAM INDUSTRIAL ENTERPRISES LTD 1· MAHAK SINGH [AL TAMAS KABIR. J] 789 "In our opinion, the Tribunal was not right in placing the onus on the A Management without first determining on the basis of cogent evidence that the respondent had worked for more than 240 days in the year preceding his termination. It was the case of the claimant that he had so worked but this claim was denied by the appellant. It was then for the claimant to lead evidence to show that he had, in fact, worked for B 240 days in the year preceding his termination." B 12. Mr. Desai also referred to the decision of this Court in the case of _Municipal Corporation, Faridabad_ v. _Siri Niwas,_ reported in [2004] 8 SCC 195. In the said case, the respondent's case relating to his termination from service had been referred to the Labour Court. His case before the Tribunal C was that he had completed working for 240 days in a year and the order of retrenchment was, therefore, illegal as conditions precedent for passing such an order as contained in Section 25F of the Industrial Disputes Act, J 947, (for short 'the Central Act') had not been complied with. Section 25F of the Central Act is reproduced hereinbelow:- D _Conditions precedent to retrenchment of workmen._ ''25F. No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until - - (a) the workman has been given one month's notice in wntmg E indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice; - (b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average F pay for every completed year of continuous service or any part thereof in excess of six months; and - (c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the appropriate Government by notification in the Official Gazette." G 13. The contention of the appellant in the said case however was that the respondent had worked only for 136 days during the preceding 12 months on daily wages and had no lien over the said job. In that background, this Court held that the burden of proof was on the respondent-workman to show H SUPREME COURT REPORTS (2007] 3 S.C.R. 790 A that he had worked for 240 days in the preceding 12 months prior to his retrenchment. 14. The same view was expressed by this Court in _Surendranagar District Panchayat_ v. _Dahyabhai Amarsinh,_ reported in [2005] 8 SCC 750, wherein this Court while referring to the decisions of this Court in the case B of _Range Forest Officer_ (supra) and _Municipal Corporation, Faridabad_ (supra) and two other decisions in the case of _Rajasthan State Ganganagar_ S. _Mills Ltd._ v. _State of Rajasthan and Anr.,_ reported in [2004] 8 SCC 161 and _M.P. Electricity Board_ v. _Hariram,_ reported in (2004] 8 SCC 246, reiterated that the burden of proof lies on the workman to show that he had worked C continuously for 240 days in the preceding one year prior to his retrenchment and it is for the workman to adduce evidence apart from examining himself to prove the fact that he had been employed for the said period by the employer. · D 15. Various other decisions were also referred to by Mr. Desai on the aforesaid point which are in consonance with the decision of this Court in _Range Forest Officer_ (supra). 16. Mr. Desai also contended that drawing an adverse presumption for non-production of evidence is not applicable in all cases where other E circumstances may exist on the basis whereof such intentional non-production may even be found to be justifiable on reasonable grounds. In the instant case, Mr. Desai submitted that since in paragraph 11 of the respondent's written statement before the Industrial Tribunal the pleading was restricted to the fact that he h~d worked for more than 240 days in the year preceding the F date of termination, the appellant had thought it fit to produce the Attendance Register for the said period only, namely, for the period comprising the year preceding the date of termination of the services of the respondents. In fact, it was the case of the appellant before the Tribunal, as also the High Court, that the Appellant-company did not maintain the records in respect of temporary posts. He urged that since the workmen had produced various G documents in support of their claim that they had worked continuously for more than 240 days they should also have proof of their having worked for 240 days in any preceding year which could have been produced before the Tribunal in order to prove that they had actually worked for 240 days continuously during 12 calendar months in any year prior to termination of H their services. Mr. Desai submitted that the respondents had failed to discharge SRIRAM INDUSTRIAL ENTERPRISES LTD. r. MAHAK SINGH [Al TAMAS KABIR. J. J 79 J their onus of proving the aforesaid fact and the Tribunal had rightly rejected A their contention. 17. Mr. Desai reiterated the fact that in one case, the respondent had worked for only 162.5 days in the 12 months preceding the date of tennination of his services. Mr. Desai also stated that the respondent had not worked at all in the months of April, May, July, September and December, 1994 which B fact had not been denied on behalf of the respondents. 18. Mr. Desai contended that most of the documents asked to be produced on behalf of the respondents were irrelevant to the fact at issue since even the Tribunal had framed an issue as to whether the concerned C workman had worked for more than 240 days during the last one year of service. It is on such basis that the Attendance Register for the preceding year had been produced on the basis whereof the Tribunal came to the finding that the respondent had not put in more than 240 days of service on !st February, 1995. D 19. Mr. Desai urged further that the mere statement on affidavit of a workman that he had worked for 240 days continuously does not constitute sufficient proof in the absence of other evidence. The said principle was referred to in the _Range Forest Officer_ (supra) case wherein it was held that filing of an affidavit is only the statement made by the workman in his own E favour which could not be regarded as sufficient evidence for any Court or Tribunal to arrive at a conclusion that the workman had, in fact, worked for 240 days in a year. It was submitted that the same principle was reiterated by this Court in the case of _RBI_ v. _S. Mani,_ reported in [2005] 5 SCC JOO. 20. Mr. Desai submitted that while the Tribunal had correctly assessed F the legal position, the High Court had wrongly shifted the burden of proving that the workman had worked for 240 days or more in a calendar year on the employer. It was submitted that having proceeded on such erroneous basis, the High Court had arrived at a wrong conclusion, in the absence of any other material evidence, that the respondents had, in fact, worked for more than 240 G days in a calendar year preceding the date oftennination of their services and such finding was, therefore, liable to be set aside. 21. Mr. Viswanathan, learned advocate, who appeared for the workmen submitted that while the High Court had not disturbed the findings of fact, [2007) 3 S.C.R. 792 ( . F G ## SUPREME COURT REPORTS A it had only corrected the jurisdictional error of the Labour Court which failed to consider the difference in the definition of "continuous service" mentioned in Section 258 2(a) of the Central Act and in Section 2 (g) of the U.P. Act. He pointed out that in the definition given in the U.P. Act, the word "preceding" has not been used. Consequently, it was urged that Section 2 (g) of the U.P. B Act does not require a workman to prove that he had worked for 240 days continuously only during the preceding period of 12 months prior to termination of his services. The workman was, therefore, entitled to show that he had worked for 240 days continuously in a calendar year for ar.y year prior to termination of his services. Mr. Viswanathan submitted that the said period was not confined under the U.P. Act only to the year preceding the date of c termination. 22. In support of his submissions Mr. Viswanathan relied on the decision of this Court in _U.P. Drugs and Pharmaceuticals Company Ltd._ v. _Ramanuj Yadav and Ors .._ reported in [2003) 8 SCC 334, where the said position has D been examined and explained. 23. Regarding Mr. Desai's submissions that this Court had consistently laid down that it is for the workmen to prove that they had worked for 240 days in a calendar year, Mr. Viswanathan submitted that this Court had in the case of _R.M. Ye/fatty_ v. _Assistant Executive Engineer,_ reported in [2006) I E sec 106, observed as under:- H "Analysing the above decisions of this Court, it is clear that the provisions of the Evidence Act in terms do not apply to the proceedings under Section I 0 of the Industrial Disputes Act. However, applying general principles and on reading the aforesaid judgments, we find that this Court, has repeatedly taken the view that the burden of proof is on the claimant to show that he had worked for 240 days in a given year. This burden is discharged only upon the workman stepping up in the witness box. This burden is discharged upon the workman adducing cogent evidence, both oral and documentary. In cases of termination of services of daily-waged earners, there will be no letter of appointment of termination. There will also be no receipt of proof of payment. Thus in most cases, the workman (the claimant) can only call upon the employer to produce before the court the nominal muster roll for the given period, the letter of appointment of termination, if any, the wage register, the attendance register, etc. Drawing of adverse SRIRAM INDUSTRIAL ENTERPRISES LTD. 1·. MAHAK SINGH [AL TAMAS KABIR,). J 793 " ) inference ultimately would depend thereafter on the facts of each A case. The above decisions however make it clear that mere affidavits or self-serving statements made by the claimant workman will not suffice in the matter of discharge of the burden placed by law on the workman to prove that he had worked for 240 days in a given year. The above judgments further laid down that mere non-production of B muster rolls per se without any plea of suppression by the claimant workman will not be the ground for the Tribunal to draw an adverse inference against the management. Lastly, the above judgments lay down the basic principle, namely, that the High Court under Article 226 of the Constitution will not interfere with concurrent findings of fact recorded by the Labour Court unless they are perverse. This C exercise will depend upon the facts of each case." 24. Mr. Viswanathan submitted that in these cases, the workmen had discharged their initial onus by producing whatever documents were in their custody. The onus had thereafter shifted to the petitioner when the workmen D asked for production of Attendance Registers and the Muster Rolls from 1991 onwards. On the failure of the petitioner to produce the said documents, the High Court had rightly drawn an adverse presumption. 25. Mr. Viswanathan then urged that in appropriate cases, the High Court in Writ Jurisdiction could interfere with the findings of fact of the courts E below as had been held by this Court in the case of _Trambak Rubber Industries Ltd._ v. _Nashik Workers Union And Ors .._ reported in [2003] 6 SCC 416. In any event, the powers of judicial review of the High Court under Article 227 are very wide and it empowered the High Court to ensure that the courts and tribunals, inferior to the High Court, discharged their duties and F obligations. 26. Mr. Viswanathan urged that the workmen had produced whatever documents were in their possession, such as, attendance cards, wage slips, bonus slips, provident fund deduction slips from 1991 onwards and since other relevant documents such as attendance registers and muster rolls were G with the petitioners, the workmen filed an application for summoning the said documents which were, not however, produced by the petitioner on account . whereof the High Court was compelled to draw an adverse presumption in terms of Section 114, Illustration (g) of the Evidence Act. 27. Mr. Viswanathan submitted that while the Tribunal had failed to H notice the difference in the definition of the expression "continuous service" 794 SUPREME COURT REPORTS (2007) 3 S.C.R. _1_ ~ . A in Section 6 N of the U.P. Act as against its definition in Section 25 B in the Central Act, the High Court had correctly interpreted the same in the judgment impugned in these proceedings. 28. Mr. Viswanathan submitted that no case had been made out on behalf of the petitioner to interfere with the findings of the High Court and B the directions ultimately given therein to reinstate the respondents-workmen and to pay them half their back wages with effect from 1995 when their services were illegally tenninated. 29. Having carefully considered the submissions made on behalf of the C respective parties and the statutory provisions, we are of the view that a decision in this matter will depend on the understanding of the expression "continuous service" as used in Section 6 N read with Section 2 (g) of the U.P. Act as against its usage in Section 25 B (2) (a) (ii) of the Central Act. In order to appreciate the difference between the two provisions, Sections 6N and 2(g) of the U.P. Act and Section 25 B 2 (a) (ii ) of the Central Act are D reproduced hereinbelow:- E _"6-N. Conditions precedent to retrenchment of workmen.--_ No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until- - (a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired or the workman has been paid in lieu of such notice wages for the period of notice: F Provided that no such notice shall be necessary if the retrenchment is under an agreement which specifies a date for the termination of service; G - (b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay for every completed year of service or any part thereof in excess of six months, and - (c) notice in the prescribed manner is served on the State Government. H - 2g. _'Continuous service'_ means uninterrupted services, and includes . service which may be interrupted merely on account of sickness ~~·· SRIRAM INDUSTRIAL ENTERPRISES LTD. r. MAHAK SINGH IALTAMAS KABIR. J] 795 .. t or authorized leave or an accident or a strike which is not illegal, A or a lock-out or a cessation of work which is not due to any fault on the part of the workman, and a workman, who during a period of twelve calendar months has actually worked in an industry for not less than two hundred and forty days shall be deemed to have completed one year of continuous service in the industry. B - _Explanation.-In_ computing the number of days on which a workman has actually worked iii an industry, the days on which - - (i) he has been laid off under the agreement or as permitted by standing order made under the Industrial Employment (Standing Orders) Act, 1946, or under this Act or under any other law c applicable to the industrial establishment, the largest number of days during which he has been so laid off being taken into account for the purposes of this clause, - (ii) he has been on leave with full wages, earned in the previous year, and D .. - (iii) in the case of a female, she has been on maternity leave; so however that the total period of such maternity leave shall not exceed twelve weeks, shall be included; _Definition of continuous service._ E 258. For the purposes of this Chapter,- - (2) Where a workman is not in continuous service within the meaning of clause ( 1) for a period of one year or six months, he shall be deemed to be in continuous service under an employer- - (a) for a period of one year, if the workman, during a period of[F ] twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than- - (ii) two hundred and forty days, in any other case;" G 30. _As pointed out by Mr. Viswanthan, the exclusion of the word .;. "preceding" from Section 2 (g) of the U.P. Act indicates that a workman in order to be in continuous service may have worked continuously for a period of 240 days in any calendar year during his period of service. In fact, such an interpretation has already been given by this Court in the case of _UP._ H • SUPREME COURT REPORTS 796 (2007) 3 S.C.R. f • A _Drugs and Pharmaceuticals Company Ltd._ (supra). The case made out by the respondents before the Tribunal was also on the same lines in the Adjudication cases filed before the labour court, where the respondents had made out a case that they had never worked as temporary hands but had worked continuously from 26th February, 1991 to 3 I st January, I 995 without break. B 3 I. In the light of the aforesaid case made out by the respondents, the Tribunal was persuaded on behalf of the petitioner herein to decide the case of the workmen on the basis of the materials produced by the petitioner for the year preceding the date of termination of their services from which it was shown that the workmen had not completed 240 days of continuous service C in the said year. t 32. The said approach, in our view, was erroneous in view of the decision of this Court in the case of _U.P. Drugs and Pharmaceuticals Company Ltd._ (supra). The petitioner had wrongly described the documents relating to attendance for the years 199 I onwards as far as the respondents are concerned, D as being irrelevant and the Tribunal has also accepted the said reasoning .. Consequently, instead of drawing an adverse presumption for non-production of the said records, the Tribunal accepted the contention of the petitioner that the workmen had not worked for more than 240 days in the year preceding the date of their termination nor had the workmen filed any proof to show E otherwise. 33. In our view, the High Court adopted the correct approach while deciding the controversy between the parties upon a correct understanding of the law as contained in Section 6 N read with Section 2 (g) of the U .P. Act which is applicable to these petitions. F 34. Having correctly interpreted the provisions of Section 6 N of the U.P. Act, the High Court rightly drew an adverse presumption for nonproduction of the Attendance Registers and the Muster Rolls for the years 1991 onwards. The best evidence having been withheld, the High Court was entitled to draw such adverse inference. The views expressed by this Court G on the question of burden of proof in _Range Forest Officer's_ case (supra) were watered down by the subsequent decision in _R.M. Yellatty's_ case (supra) and in our view the workmen had discharged their initial onus by production of the documents in their possession. H 35. On the question of judicial review, the submissions made by Mr. SRI RAM INDUSTRIAL ENTERPRISES LTD. _v._ MAHAK SINGH [AL TAMAS KABIR, J.] 797 Viswanathan has force and we are inclined to accept the same. 36. In view of what has been indicated hereinabove, we are satisfied that no interference is called for with the judgment and directions given by the High Court which had been impugned in these petitions and the special leave petitions are accordingly dismissed. Interim order dated I 6th August, 2005, stands vacated. B 37. There will be no order as to costs. KKT. SLPs are dismissed. '