High CourtDivision BenchAppeal disposed of

State of M.P. v. Onkar Prasad Patel

Case / Petition Number:Civil Appeal No. 6678 of 2004

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Arijit Pasayat
  • Tarun Chatterjee
Judgment Date
2005-12-07
Court Decision / Holding
Appeal allowed to the extent that the respondent cannot be categorized as a permanent employee due to the absence of a clear vacancy; the directions to grant permanent status are set aside; the orders of the Labour Court, Industrial Court, and High Court directing permanency are not sustained.
Final Disposition
Appeal disposed of

Parties to the Case

Appellants / Petitioners

  • State of Madhya Pradesh and its functionaries

Respondents

  • Onkar Prasad Patel

Legal Representation & Advocates

Counsels for Petitioners

  • • Ms. Vibha Datta Makhija
  • • C.D. Singh

Counsels for Respondents

  • • M.L. Lahoty
  • • Paban K. Sharma
  • • Sushil Kumar Jain
  • • Ms. Pratibha Jain

Case Synopsis & Summary

This Civil Appeal concerns whether a workman who served as a helper in the Public Health Engineering Department for over six months can be declared a permanent employee under the Madhya Pradesh Industrial Employment Standing Orders Rules, 1963. The respondent-workman claimed regularization and permanency after more than six months of service on the ground that he rendered continuous service in a permanent vacancy and was entitled to regularization and differences in salary. The Labour Court held that he was not appointed to any permanent and vacant post but still directed that from the date of the order he be paid at the regular wage rate, and treated him as permanent from a defined date. The Industrial Court affirmed, and the High Court dismissed the writ petition, upholding the lower courts’ stance. The State appealed, arguing that permanency is governed by a twofold test under Rule 2(i) of the Standing Orders: (a) six months of satisfactory service and (b) service rendered in a clear vacancy. No evidence of a clear vacancy was established, and the Labour Court had found no vacancy. The Supreme Court held that the definition of a "permanent employee" is clear, and the two conditions are cumulative. Since there was no clear vacancy, the worker cannot be categorized as permanent, and the lower courts’ directions were unjustified. The appeal is allowed to that extent; the orders directing permanency are set aside.

Provisions of Law Cited

Madhya Pradesh Industrial Relations Act, 1960 – sections 31(3) and 61Madhya Pradesh Industrial Employment Standing Orders Rules, 1963 – Rule 2(i)

Submissions & Arguments

Contentions of Appellants / Petitioners

The State contends that to obtain permanency, the Standing Order requires six months of satisfactory service in a clear vacancy and that there must exist a clear vacancy for a permanent post; the Labour Court’s finding of no clear vacancy defeats the claim for permanency. The six-month criterion and vacancy requirement are cumulative, and without a clear vacancy the claimant cannot be declared permanent. The evidence of continuous service (Ex. D-1) cannot override the vacancy requirement.

Contentions of Respondents

The respondent-workman argued that Ex. D-1 establishes continuous service and the nature of work; therefore, he is entitled to regularization and classification as permanent. The Labour Court and subsequent forums treated continuous service as a basis for permanency, notwithstanding the absence of a clearly vacant permanent post.

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Extracted Judgment Text

Exact text extracted from official judgment records.

A STA TE OF M.P. AND ORS. _v._ ONKAR PRASAD PA TEL ## DECEMBER 7, 2005 B [ARIJIT PASAYAT ANDTARUN CHA TIERJEE, JJ.) _Labour laws:_ _Madhya Pradesh Industrial Relations Act, 1960; Ss. Jl(J) and 611_ C _Madhya Pradesh Industrial Employment Standing Orders Rules, 1963; Rule 2(i):_ _Filing of petition by a workman for regularization of services and payment of arrears on ground of rendering services continuously for six_ D _months-Allowed by labour Court holding that he Was' entitled to be classified as permanent employee-Affirmed by Industrial Court and .also by High Court-On appeal, Held: The Workman cannot be categorized as perma,nint employee in terms of the Standing Order since he did not render service against a clear vacant permanent post._ E Respondent-workman after rendering services as helper for six months in the Public Health Engineering Department of State of Madhya Pradesh filed a petition for regularization of his services and also for consequential benefits. Allowing the claim of the workman for regularization of his services, Labour Court rejected his claim for consequential benefits as he was not F appointed against a vacant permanent post Appeal against the order of Labour Court was dismissed by the Industrial court and later writ petition filed by the appellant-State was dismissed by the High Court. Hence the present appeal It was contended by the appellant-State that in order to be entitled to a declaration for permanency, certain criteria are fixed in terms of the Standard G Standing Order framed under the Act; that no evidence was adduced by the claimant/workman to show that there was any clear vacancy and the auertions made in that regard in the petition was denied specifecally by the appellant; that the Labour court recorded a positive finding that there was no clear vacancy and, therefore, there was no question of the workman being classified 568 H 569 STATE OF M.P. v. ONKARPRASADPATEL fPASAYAT.J.) in the permanent category; and that after having held that the applicant/ A workman had not been appointed to any permanent and vacant post, the directions given by the Labour Court, the Industrial Court and the High Court · do not stand to reason. The respondent/workman submitted that Ex.D-1 clearly indicated that he was working continuously and also about the nature of work. Thus, the B views expressed by the Labour Court, the Industrial Court and the High court do not suffer from any infirmity. Disposing of the appeal, the Court HELD: In view of the clear definition ofa "permanent employee", as C given in the Standard Standing Order, the applicant/workman cannot be categorized as a permanent employee even though he may have completed six months satisfactory service. The other requirement that the service was :t'" rendered in a clear vacancy in one or more posts was not established. The conditions are cumulative and are not independent of each other. That being D the position, the Labour Court, the Industrial Court and the High Court were not justified in directing that the respondent/workman was to be categorized as a permanent employee. (571-F, GI CIVIL APPEL LA TE JURISDICTION : Civil Appeal No. 6678 of2004. E From the Judgment and Order dated 4.2.2002 of the Madhya Pradesh High Court in W.P. No. 569 of2002. Ms. Vibha Datta Makhija and C.D. Singh for the Appellants. M.L. Lahoty, Paban K. Sharma, Sushi! Kumar Jain a~d Ms. Pratibha Jain F for the Respondent. The Judgment of the Court was delivered by ARIJIT PASAYAT, J. Challenge in this appeal is to a judgment of the learned Single Judge of the High Court of Madhya Pradesh at Jabalpur G dismissing the writ petition filed by the State of Madhya Pradesh and its functionaries; thereby putting its seal of approval on the orders of the Labour Court, Jabalpur (in short, 'the Labour Court') and the Industrial Court, Jabalpur Bench (in short, 'the Industrial Court'). The respondent (hereinafter referred to as the workman) filed a petition under Section 31(3) read with Section 61 of the Madhya Pradesh Industrial Relations Act, 1960 (in short, 'the M.P. fi 570 SUPREME COURT REPORTS [2005] SUPP. _5_ S.C.R. A Act'). His stand in the essence was that he was in the services of the Public Health Engineering Department and was working at Jabalpur Sub-Division since 17.11.1991 as a Helper. He prayed for regularization of his services on the ground that he had rendered services for more than six months in a permanent vacant post and, therefore, entitled to be classified as a permanent B employee and was also entitled to the difference of salary and consequential benefits. The claim ~as resisted by the State and its functionaries on the ground that the respondent was not working in respect of a permanent post and his services cannot, therefore, be regularized. Evidence was led by the parties. The Labour Court came to a positive finding that the applicant/ workman had not been appointed to any permanent and vacant post by an C appointment order and he was not as such entitled to get benefits of difference in wages, as he was a daily wager. But it directed that from the date of order, he was entitled to get the regular wage rate. This, apparently, was done because the Labour Court felt that he had worked continuously ~nd, therefore, was entitled to be classified in the permanent category. It held that the applicant was entitled to be classified in permanent category on the post of D worker from 24.05.1994 i.e. two years prior to 24.05.1996 (the date of application) and was to be granted wage rate ofregular category from the date of the order of the Labour Court i.e. 26.08.2000. An appeal was filed before the Industrial Court, which was dismissed. The Industrial Court was of the view that since the applicant/workman had worked for more than six months from the date of E appointment, he was entitled to the benefit extended by the Labour Court. A writ application was filed before the High Court, which, as noted above, was dismissed. The High Court came to hold that enough opportunity was granted to the employer to place its case and the employer only exhibited Ex. D-1 and did not want to lead any further evidence. Therefore, the view expressed by the Labour Court and the Industrial Court did not warrant interference. F Learned counsel for the appellant-State and its functionaries submitted that in order to be entitled to a declaration for permanency, certain criteria are fixed in terms of the Standard Standing Order framed under the Act. The requirements are (a) the employee must have completed six months satisfactory G service (b) the service must have been rendered in a clear vacancy in one or more posts. In the instant case, no evidence was adduced by the claimant/ workman to show that there was any clear vacancy. The assertions made in that ,regard in the petition was denied specifically by the present appellant. In fact, the Labour Court recorded a positive finding that there was no clear vacancy and, therefore, there was no question of his being classified in the H permanent category. A specific issue was framed in this regard which reads 571 STA TEOF M.P. v. ONKAR PRASAD PA TEL [PASA YAT, J.] A as follows: "Whether the applicant is entitled to be on the post classified the permanent category on the post of helper from 17. l I .1991 ?" After having held that the applicant/workman had not been appointed to any permanent and vacant post, the directions given do not stand to B reason. Unfortunately, the Labour court, Industrial Court and the High Court did not focus attention on this vital issue. In response, learned counsel for the respondent/workman submitted that Ex. D-1 clearly indicated that the respondent was working continuously and what was the nature of work. Therefore, the views expressed by the C Labour Court, the Industrial Court and the High Court do not suffer from any infirmity. The Standing Order in terms of Rule 2(i) of the Madhya Pradesh Industrial Employment Sanding Orders Rules, 1963 (in short 'Rules') which admittedly was applicable provided, inter-alia, as follows: D "Rule 2 Classification of Employees - x x x (i) A "Permanent" employee is one who has completed six months E satisfactory service in a clear vacancy in one or more posts whether as Probationer or otherwise, or a person whose name has been entered in the muster roll and who is given a ticket of permanent employees." In view of the clear definition of a "permanent employee", as given in the Standard Standing Order, the applicant/workman cannot be categorized as f a permanent employee even though he may have completed six months satisfactory service. The other requirements that the service was rendered in a clear vacancy in one or more posts was not established. The conditions are cumulative and are not independent of each other. That being the position, the Labour Court, the Industrial Court and the High Court were not justified in directing that the respondent/workman was to be categorized as permanent G employee. That part of the direction is set aside. The appeal is allowed to the aforesaid extent. No costs. S.K.S. Appeal disposed of H