High CourtDivision BenchAppeal Allowed.

State of Uttaranchal and Anr. v. Prantiya Sinchai Av Ambandhyogana Shramik Mahaparishad

Case / Petition Number:Civil Appeal No. 4856 of 2007

Case Details & Bench

Court
High Court
Hon'ble Judges
  • Dr. Arijit Pasayat
  • P. Sathasivam
Judgment Date
2007-10-12
Court Decision / Holding
Appeal Allowed. The matter is remitted to the Labour Court to examine the factual background, including the existence of sanctioned posts, and decide afresh in light of Uma Devi (3) and Hindustan Aeronautics decisions. No order as to costs.
Final Disposition
Appeal Allowed.

Parties to the Case

Appellants / Petitioners

  • State of Uttaranchal and Anr.

Respondents

  • Prantiya Sinchai Av Ambandhyogana Shramik Mahaparishad

Legal Representation & Advocates

Counsels for Petitioners

  • • P.N. Gupta

Counsels for Respondents

  • • Bharat Sangal
  • • Samyadip Chatterji
  • • A. Ramakrishnan

Case Synopsis & Summary

This appeal arises from a dispute over the regularization of 14 daily-wage workmen employed in the Irrigation Department who had worked for more than six years and completed 240 days in each calendar year. The Labour Court directed regularization, and the Uttaranchal High Court upheld this directive, treating the workers as entitled to permanent status. The State challenged these orders, arguing that there is no automatic regularization and that regularization cannot bypass rules framed under Article 309 of the Constitution; permanent tenure cannot be equated with regularization. The respondents contended that the workers had accumulated more than 240 days in six years, implying a right to regularization. The Court revisits well-settled authorities, reiterated in Uma Devi (3) and Ors. and others, that there is no automatic regularization and that regularization is only permissible to cure procedural irregularities in the selection process if it does not go to the root of the process, and always in accordance with statutory rules. Notably, the factual basis for sanctioned posts was not examined by either the Labour Court or the High Court, raising a threshold requirement for factual determination. The Court remits the matter to the Labour Court to examine the factual background and decide afresh in light of Uma Devi’s case and Hindustan Aeronautics Ltd. v. Dan Bahadur Singh. The appeal is allowed to this extent; no order as to costs.

Provisions of Law Cited

Constitution of India, Article 309Constitution of India, Article 162Industrial Disputes Act, 1947

Legal Doctrines & Maxims

  • Regularization is not automatic; it cures procedural irregularities
  • Regularization cannot confer permanence or tenure; it must follow statutory rules
  • Only irregularities in the process that do not go to the root of the selection can be regularized
  • Completion of 240 days does not create a legal right to regularization
  • Ad hoc appointments do not entitle regularization

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants submit that there is no basis for automatic regularization. The Labour Court and High Court erred by treating regularization as a guaranteed tenure merely because the workers had worked for six years and completed 240 days in a year. Regularization cannot bypass statutory rules framed under Article 309 and the executive powers under Article 162. Factual findings about sanctioned posts were not examined, making any order premature. The Court should remand for scrutiny of the post-creation and compliance with Uma Devi (3) to avoid impermissible regularization.

Contentions of Respondents

The respondents contend that regularization is warranted where workers have satisfied 240 days in consecutive years, with several posts vacant and sanctioned. They rely on Uma Devi (3) and other precedents to argue that there is no automatic regularization, but that long service with 240 days should be treated as a basis for relief within the statutory framework. They assert that non-creation of posts is not fatal if sanctioned posts exist and that regularization may be permissible in light of established precedents.

Cited Precedents (12)

Case NameCitationTreatmentExplanation
Secretary, State of Karnataka and Ors. v. Uma Devi (3) and Ors.[2006] 4 SCC 1PositiveUsed to establish that there is no automatic regularization; regularization must follow rules.
B.N Nagarajan & Ors. v. State of Karnataka & Ors.[1979] 4 SCC 507PositiveSupported the view that regularization does not connote permanence and must align with rules.
Madhyamik Shiksa Parishad v. Anil Kumar Mishra & Ors.[2005] 5 SCC 122PositiveCited for the proposition that 240 days does not confer a right to regularization.
MP Housing Board and Anr. v. Monoj Srivastava[2006] 2 SCC 702PositiveAffirms that long duration with 240 days does not create a legal right to regularization.
Gangadhar Pillai v. Siemens Ltd.[2007] 1 SCC 533PositiveReiterates that regularization must follow rules and cannot imply tenure.
Indian Drugs and Pharmaceuticals Ltd. v. Workman, Indian Drugs & Pharmaceuticals Ltd.[2007] 1 SCC 408PositiveCited to support the no-right-to-regularize de hors the rules principle.
Hindustan Aeronautics Ltd. v. Dan Bahadur Singh[2007] 6 SCC 207PositivePosits that Uma Devi and related doctrines apply; regularization requires compliance with rules.
Dr. Surinder Singh Jamwal and Anr. v. State of Jammu & Kashmir and Ors.AIR 1996 SC 2775PositiveAffirms that ad hoc appointments do not grant regularization rights.
E. Ramakrishnan and Ors. v. State of Kerala and Ors.[1996] 10 SCC 565PositiveSupports the rule that regularization cannot occur de hors the rules.
Dr. Kishore v. State of Maharashtra[1997] 3 SCC 209PositiveRecognized principle that regularization follows statutory rules.
Union of India and Ors. v. Bishambar Dutt[1996] 11 SCC 341PositiveHighlights that regularization requires compliance with statutory rules.
Uma Devi (3) and Ors.[2006] 4 SCC 1PositiveUnderpins the central doctrine of no automatic regularization.

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Extracted Judgment Text

Exact text extracted from official judgment records.

_>_ A -1, _>---_ t # STATE OF UTTARANCHAL AND ANR. _V._ # PRANTIYA SINCHAI AV AM BANDH YOGANA SHRAMIK MAHAPARISHAD ## OCTOBER 12, 2007 [DR. ARIJIT PASAYAT AND P. SATHASIVAM,JJ.] ' ## _Labour Laws:_ c ,..,. _Regularization-Daily wagers working/or more than six_ years~ _Had completed 240 days in each calendar year-Claim for regularization-Allowed by Labour Court-Order upheld by High Court-On appeal, held: Before any direction for regularization can be given, factual position has to be noted as to whether there was any_ D _sanctioned post-Such factual details not discussed by either Labour Court or High Court-Matter remitted back to Labour Court to consider the factual background and to decide the matter afresh._ The 14 workmen in question were working on daily wages for more than six years and had completed 240 days in each calendar E year. The question which arose for consideration in the present appeal is whether they ought to be regularized. ## Allowing the appeal, the Court F --1 -+ HELD: 1. There is no question of any automatic regularization. The words 'regular' or 'regularization' do not connote permanence and cannot be construed so as to convey an idea of the nature of tenure of appointments. They are terms calculated to condone any G procedural irregularities and are meant to cure only such defects as are attributable to methodology followed in making the appointments. Further, when rules framed under Article 309 of the Constitution are in force, no regularization is permissible in exercise 187 H 188 SUPREME COURT REPORTS [2007] 11 S.C.R. A of the executive powers of the Government under Article 162 thereof in contravention of the rules. Only something that is irregular for want of compliance with one of the elements in the process of selection which does not go to the root of the. process, can be regularized and that it alone can be regularized and granting B permanence of employment is totally different and cannot be equated with regularization. [Paras 8 and 9] [190-F-H; 191-A-B] c _Secretary, State of Karnataka and Ors._ v. _Uma Devi (3) and Ors.,_ (2006] 4 SCC 1 and _B.N Nagarajan & Ors._ v. _State of Karnataka & Ors.,_ (1979] 4 5CC 507, relied on. 2. The completion of 240 days' work does not confer the right to regularization under the Industrial Disputes Act. It merely imposes certain obligations on the employer at the time of termination of the sen-ice. Only because a person had been working D for more than 240 days, he does not derive any legal right to be regularized in sen-ice. [Para 10] [191-C-D] _Madhyamik Shiksa Parishad_ v. _Anil Kumar Mishra & Ors.,_ [2005] 5 SCC 122; _MP. Housing Board and Anr._ v. _Afonoj Srivastava,_ [2006] 2 SCC 702; _Gangadhar Pillai_ v. _Siemens Ltd.,_ [2007) 1 SCC E 533; _Indian Drugs and Pharmaceuticals Ltd._ v. _Workman, Indian Drugs & Pharmaceuticals Ltd.,_ [2007] 1 SCC 408 and _Hindustan Aeronautics Ltd._ v. _Dan Bahadur Singh and Ors.,_ (2007] 6 SCC 207, relied on. F 3. It is not in dispute that some of the concerned workmen have been regularized. Before any direction for regularization can be given, the factual position has to be noted as to whether there was any sanctioned post. Apparently, in the present case, these factual details have not been discussed by either the Labour Court or the G High Court. Therefore, the matter is remitted to the Tribunal to consider the factual background and-to decide the matter afresh in the light of what has been stated in Uma Devi's case and Hindustan Aeronautics' case. [Para 12] [192-C-D] _Secretary, State ofKarnataka and Ors._ v. _Uma Devi (3) and Ors.,_ H [2006] 4 SCC 1 and _Hindustan Aeronautics Ltd._ v. _Dan Bahadur Singh_ **A** ~ t STATE _v._ PRANTIYASINCHAI AV AMBANDH YOGANA 189 SHRAMIKMAHAP ARISHAD [PASA YAT, J.] _and Ors.,_ **(2007] 6 SCC 207, relied on.** CIVIL APPELLATE JURISDICTION: Civil Appeal No. 4856 of 2007. From the Judgment and final Order dated 10.8.2005 of the High Court ofUttaranchal at Nainital in Writ Petition No. 4894 of2001 (M/ B S). ## P.N. Gupta for the Appellants. Bharat Sangal, Samyadip Chatterji and A. Ramakrishnan for the Respondent. C The Judgment of the Court was delivered by **DR. ARIJIT PASAY;\T, J.** 1. Leave granted. _f-_ / 2. Challenge in this appeal is to the order passed by a learned Single D Judge of the Uttaranchal High Court dismissing the writ petition filed1 by the appellants. 3. The factual position in a nutshell is as follows:- On the basis of a dispute raised, reference was made to the Labour E Court, Haldwani, Uttar Pradesh, referring the following question for adjudication:- "Whether the non-regularization of 14 members mentioned in the Schedule by the employers is improper or unjustified? If yes, to what relief/benefit the concerned workmen are entitled, from F which date and with what other details?" -; The employer took the stand that the concerned workmen were being engaged from time to time on temporary basis and wages and other benefits as admissible were being paid. The question of any regularizatjon does not arise. The Labour Court found that the employees were ~ot G regularized because of non-creation of posts by the Government. Stand of the workmen was that several permanent posts were _lying vacant in_ the Irrigation Department. The Labour Court accordingly directed that salary and other benefits ought to be paid to the concerned workers while H 190 SUPREME COURT REPORTS [2007] 11 S.C.R. A considering them regular with effect from the date of judgment of the Labour Court. It was, accordingly, held that non-regularization was illegal. 4. A writ petition was filed before the Uttaranchal High Court which was dismissed by the impugned order. The High Court was of the view B that all the 14 workmen, in question, were working on daily wages for more than six years and had completed 240 days in each calendar year and they ought to be regularized. Accordingly, the writ petition was dismissed. ;- 5. In support of the appeal, learned counsel for the appellant C submitted. that the directions given by the Labour Court and the High Court were clearly contrary to what has been stated by a Constitution Bench of this Court in _Secretary, State of Karnataka and Ors._ v. _Uma Devi (3) and Ors.,_ [2006] 4 SCC 1. 6. Learned counsel for the respondent, on the other hand, submitted D that the concerned workmen had worked for more than 240 days in each of the six years they were engaged. Therefore, they were entitled to be regularized. 7. With reference to the order of the Labour Court, it is submitted E that payments were being made to them on the basis of sanctioned wages. From this, it was contended, it is clear that there were sanctioned posts. F 8. In _Uma Devi's_ case (supra), the issue relating to regularization was examined at length. It was essentially held that there was no question of any automatic regularization. 9. In _B.N Nagarajan & Ors._ v. _State of Karnataka & Ors.,_ [1979] 4 5 sec 507, it was held that the words "regular" or "regularization" do not connote permanence and cannot be construed so as to convey an idea of the nature of tenure of appointments. They are G terms.calculated to condone any procedural irregularities and are meant to cure only such defects as are attributable to methodology followed in making the appointments. Further, when rules framed under Article 309 of the Constitution oflndia are in force, no regularization is permissible in exercise of the executive powers of the Government under Article 162 H thereof in contravention of the rules. This view has been approved by the t _(_ ,.. B ~ ~ l I ## STATEv. PRANTIYASINCHAIAVAMBANDHYOGANA 191 SHRAMIKMAHAP ARISHAD [P ASAY AT, J.] Constitution Bench in _Uma Devi's_ case (supra) at para 16. It was A emphasized here that only something that is irregular for want of compliance with one of the elements in the process of selection which does not go to the root of the process, can be regularized and that it alone can be regularized and granting permanence of employment is totally different and cannot be equated with regularization. B ~ 10. The next question which requires consideration is whether completion of 240 days in a year confers any right on an employee or Ir ' workman to claim regularization in service. In _Madhyamik Shiksa Parishad_ v. _Anil Kumar Mishra & Ors.,_ (2005] 5 SCC 122, it was held that the completion of240 days' work does not confer the right to c regularization under the Industrial Disputes Act. It merely imposes certain , __ . obligations on the employer at the time of termination of the servi~e. In _MP. Housing Board and Anr._ V. _Monoj Srivastava,_ [2006] 2 sec 702 (paragraph 17) after referring to several earlier decisions it has been reiterated that it is well settled that only because a person had been working[D ] _r_ ' for more than 240 days, he does not derive any legal right to be regularized in service. This view has been reiterated in _Gangadhar Pillai_ v. _Siemens_ ./ _Ltd.,_ [2007] 1 SCC 533. The same question has been examined in considerable detail with reference to employee working in a Government . Company in _Indian Drugs and Pharmaceuticals Ltd_ v. _Workman,_ E _Indian Drugs & Pharmaceuticals Ltd.,_ (2007] 1 SCC 408 and paragraphs 34 and 35 of the judgment are being reproduced below:- "34. Thus, it is well settled that there is no right vested in any daily wager to seek regularization. Regularization can only be done in F accordance with the rules and not de hors the rules. In the case of _E. Ramakrishnan and Ors._ v. _State of Kera/a and Ors.,_ [1996] 10 5 SCC 565 this Court held that there can be no regularization de hors the rules. The same view was taken in _Dr. Kishore_ v. _State of Maharashtra,_ [1997] 3 SCC 209) and _Union of India_ I _and Ors._ v. _Bishambar Dutt,_ (1996] 11 SCC 341. The direction[G ] issued by the Services Tribunal for regularizing the services of persons who had not been appointed, on regular _basis in_ accordance with the rules was set aside although the petitioner had been working regularly for a long time. H i· 192 SUPREME COURT REPORTS (2007] 11 S.C.R. A 35. In _Dr. Surinder Sinqh Jamwal and Anr._ v. _State of Jammu & Kashmir and Ors.,_ AIR (1996) SS 2775, it was held that ad hoc appointment, does not give any right for regularization as regularization is governed by the statutory rules. B 11. The above positi.on was highlighted in _Hindustan Aeronautics Ltd._ V. _Dan Bahadur Singh and Ors.,_ (2007] 6 sec 207. 12. It is not in dispute that some of the concerned workmen have. been regularized. Before any direction for regularization can be given, the factual position has to be noted as to whether there was any sanctioned C post. Apparently, in tl1e present case, these factual details have not been discussed by either the Labour Court or the High Court. We, therefore, remit the matter to the Tribunal to consider the factual background and to decide the matter afresh in the light of what has been stated in _Uma Devi's_ case (supra) and _Hindustan Aeronautics_ case (supra). D 13. The appeal is al 1 owed to the aforesaid extent with no order as to costs. B.B.B. Appeal Allowed. r