C.S. AZAD KRISHI EVAM PRODYOGIKI VISHWA VIDYALAYA v. UNITED TRADES CONGRESS & ANR

Citation: [2007] 13 S.C.R. 704

Court: Supreme Court of India

Bench: S.B. SINHA, H.S. BEDI

Case summary

C.S. AZAD KRISHI EVAM PRODYOGIKI VISHWA VIDYALAYA v. UNITED TRADES CONGRESS & ANR.pdf

Judgment text

'I- C. S. AZAD KRISHI EVAM PRODYOGIKI VISHWA VIDYALAYA --~v. UNITED TRADES CONGRESS & ANR. DECEMBER 13, 2007 [S. B. SINHA AND HARJIT SINGH BEDI, JJ] '" Service law: Regularization-Claim of by daily wager entrusted with work ofclerk-Entitlementfor-Held: Not entitledas University statute not providing for appointment of daily wager-Also constitutional requirement not complied with-Uttar Pradesh (Krishi Evam ... Prodyogik Vishwavidyalaya Adhiniyam) Act, 1958-Consitutiton of India, 1950-Articles 14and16-University. Appellant-University was created under the Uttar Pradesh (Krishi Evam Prodyogik Vishwavidyalaya Adhiniyam) Act, 1958. The service conditions ofemployees ofthe University were governed thereby as also by the statute framed thereunder. Its basic object was to undertake various training and projects for the betterment of agriculture. For the said purpose, persons were employed from time to time; sometimes project-wise. Respondent No. 2 was appointed on daily wages on 1. 7. 1980.

He worked as a Laboratory Assistant-cum-Attendant, a Class IV post. The work ofAssistant Clerk, however, was taken from him on and from 1. 11. 1991. He was paid at the rate ofRs. 40/- per day. He raised industrial dispute on the premise that his services had not been regularized by the University. The Industrial Tribunal having regard to an order passed by the High Court on a concession made by the counsel for the University in a writ petition filed by other employees of the University, by an award directed that it was completely proved that the employer was taking work from the concerned worker from 1. 11. 91 continuously as a clerk however he was being paid salary on a daily wage basis which was improper and illegal and the VIDYALAYAv. UNITEDTRADESCONGRESS concerned worker as perthe natureofhis workis entitled to be made permanent and regularized in the post ofclerk/typist. High Court dismissed the writ petition filed by appellant-employer.

In ·appeal to this Court, appellant contended that the appointment ofthe respondent No. 2 having been madede 'hors the ! statutory rules, no direction for regularization could be issued; that · the Industrial Tribunal could not direct regularization ofa Class III ·employee, particularly, when the respondent No. 2 had not worked ~for a long time in the said post and that the Industrial Court could not grant a declaratory decree. Allowing the appeal, the Court HELD: 1. 1. The University Statute does not provide for appointment on daily-wages or on an adhoc basis. Respondent No. 2 in his written statement filed before the Industrial Court did not make any averment that he was appointed in terms ofthe provisions ofthe statute or prior thereto any advertisement therefor was made. According to him, he being a hard working, honest, efficient and eligible employee, was 'entrusted' with the work of a clerk from 1. 11. 1991.

In bis written statement, he did not raise contention that he was appointed against a permanent vacancy. It does not also appear from the records that any offer ofappointment was given to him. It is inconceivable that an employee appointed on a regular basis would not be given an offer ofappointment or not be place. d on a scaleofpay. The IndustrialCourtin passingthe impugned award proceeded on the premisethat Respondent No. 2 had been working for more than 240 days continuously from the date of his engagement. It is now trite that the same by itself does not confer any right upon a workman to be regularized in service. Working for more than 240 days in a year was relevant only for the purpose of application of s. 6N of the U. P. Industrial Disputes Act, 1947 providing for conditions precedent to retrench theworkmen. It does· not speak ofacquisition ofa right by a workman to be regularized in service. [Paras 11and12] [710-G-H; 711-C-E] Executive Engineer, ZP Engg. Divn. andAnr. v.

Digambara Rao and Ors. , [2004] 8 SCC 262; Madhyamik Shiksha Parishad, UP. v. nilKumar Mishra and Ors. , (2005] 5SCC 122; State ofUP. v. Neeraj Awasthi and Ors. , [2006) 1 SCC 667; A. Umarani v. Registrar Cooperative Societies and Ors. , {2004] 7 SCC 112; Secretary, State ofKarnataka and Ors. v. Umadevi (3) and Ors. , [2006) 4 SCC 1; Punjab Water Supply andSewerage Boardv. Ranjodh Singh andOrs. , 8 (2007) 2SCC 491; MP. Housing BoardandAnr. v. Manoj Shrivastava, [2006] 2 SCC 702; MP. State Agro Industries Development Corpn. Ltd. and Anr. v. S. C. Pandey, [2006] 2 SCC 716; Indian Drugs and Phrmaceuticals Ltd v. Workmen, Indian Drugs andPharmaceuticals~ Ltd. , [2007) 1SCC 408 and Gangadhar Pillai v. Siemens Ltd, [2007) 1 sec 533, relied on. Mahendra L. Jain and Ors. v. Jndore DevelopmentAuthorityand Ors. , (2005] 1 SCC 639, referred to. 1. 2. The IndustrialCourt, committed a serious error in passing the impugned award. The High Court unfortunately did notpose unto itselfa right question.

What was necessary to be considered was the nature ofwork undertaken by the University. It undertakes projects. For the said purpose, it may have to employ a large number of persons. Theirservices had to be temporary in nature. Even for that the provisions ofArticles 14 and 16 are required to be complied with. In the event, the constitutional and statutory requirements are not complied with, the contract ofemploymentwould be rendered illegal. [Paras 16 and 17] (714-E-G-H; 715-A] 2. Services of Respondent No. 2 were not terminated. He has been continuing to serve the University. In a writ petition filed by other employees on a concession made by the counsel for the University, a purported scheme dated 24. 04. 2000 was formulated. The statement of counsel of appellant is placed on record that despite the legal position in the event the case ofRespondent No. 2 comes within the purview ofthe said Scheme, his services would be regularized when his turn comes therefor.

[Paras 18 and 19] [715-B-C) CIVIL APPELLATE JURISDICTION : Civil Appeal No. 5873 of From the final Judgment and Order dated 07. 03. 2006 of the High Court ofJudicature at Allahabad in Civil Misc. Writ Petition No. 19512 of 1999. Dr. R. G. Padia, C. D. Singh, Merusagar Samamtaray, Vairagya Vardhan and Lalit Srivastava for the Appellant. S. Chandra Shekhar and Sunny Chowdhary for the Respondents. x The Judgment ofthe Court was delivered by S. B. SINHA, J. 1. Leave granted. 2. This appeal is directed against the judgment and order dated 7. 03. 2006 passed by a learned Single Judge ofthe Allahabad High Court dismissing the writ petition filed by the appellant from an award dated 30. 05. 1998 passed by the Presiding Officer, Industrial Tribunal (3) U. P. Kanpur. 3. Appellant is a University created under the Uttar Pradesh (Krishi Evam Prodyogik Vishwavidyalaya Adhiniyan1) Act, 1958 (for short "the Act").

The service conditions of the employees of the University are governed thereby as also by the statute framed thereunder. Its basic object was to undertake various training and projects for the bettem1ent of agriculture. For the said purpose, it employs-persons from time to time; sometimes project-wise. 4. Admittedly, Respondent No. 2 herein was appointed on dailywages by the University on 1. 07. 1980. He was being paid wages on daily basis. He worked as a Laboratory Assistant-cum-Attendant which is a Class IV post. The job ofAssistant Clerk, however, was being taken from him on and from 1. 11. 1991. His remuneration was being paid at the rate of Rs. 40/- per day. 5. Respondent No. 1which is a trade union, raised an industrial dispute on behalfofthe respondent No. 2 on the premise that his services had not been regularized by the University.

Pursuant thereto, a reference was made by the appropriate Government which reads as under: "Whether the employer by not declaring the employment of its employee Kalyan Sharan, S/o Shiv Dutt working as a clerk ~pennanent did commit illegality? Ifyes whether the concerned employee is the rightful claimant to the benefits (reliefs) and from which date and with what reason? 6. The Presiding Officer, Industrial Tribunal (3), UP, to whom the said reference was made, inter alia having regard to an order passed by the High Court on a concession made by the learned counsel for the University in a writ petition filed by other employees ofthe University, by an award dated 30. 05. 1998 directed: "... Thus it is being completely proved that the employer has been taking work from the concerned worker from 1. 11.

91 continuously as a Clerk however he is being paid salary on a daily wage basis as a daily wage employee which is highly unfortunate, improper and illegal and the concerned worker as per the nature ofhis work is rightly entitled to be made pennanent and regulariz. ed in the post ofClerk/ typist keeping in view the nature ofthe work which he is doing now. After having considered the written statements, counter replies, documents, and deposition of witnesses and after hearing the arguments ofboth the sides I have come to the conclusion finally that the employer ofthe concerned worker Kalyan Sharan S/o Shiv Dutt, post - Clerk having not declared the concerned worker as regulariz. ed and pennanent is an illegality and is wrong. Thus, it is my decision in this dispute is that the employer while declaring the concerned worker permanent should extend him all the benefits due to him from the day ofthis Order. " 7.

Validity ofthe said award was questioned by the appellant before the Allahabad High Court which by reason ofthe impugnedjudgment has been dismissed by a learned Single Judge ofthe Court, holding: "After perusal ofthe judgment passed by the Labour Court it is clear that the Labour Court has considered each and every aspect and has come to the conclusion that in spite of the fact that respondent workman is working from 1980 and is being treated as daily wager, this clearly amounts to unfair labour practice. The finding recorded by the Labour Court is a finding offact in view ofthe judgment reported in 2005 {3) SCC 193, Management of Madurakantam Cooperative Sugar Mills Ltd. v. S. Vishwanathan, the Apex Court has clearly heid that there is very little scope ofinterference in the finding recorded by the Labour Court.

The finding recorded by the Labour Court is a finding of fact and unless and until it is proved beyond doubt that the Labour x Court has exceeded its jurisdiction and the finding recorded by the Labour Court is against the evidence on record and is perverse then the High Court while exercising the jurisdiction under Article 226 ofthe Constitution of India has the jurisdiction to interfere otherwise there is very little scope for interference. " 8. Dr. R. G. Padia, learned senior counsel appearing on behalf of the appellant, in support ofthis appeal, would submit that the impugned award as also the judgment and the order ofthe High Court are wholly unsustainable inasmuch as : (i) The appointment ofthe respondent No. 2 having been made de 'hors the statutory rules, no direction for regularization could have been issued. (1i) The Industrial Tribunal could not direct regularization of Class III employee, particularly, when the respondent No.

2 had not worked for a long time in the said post. (iii) The Industrial Court cannot grant a declaratory decree. 9. Mr. S. Chandra Shekhar, learned counsel appearing on behalfof the respondents, on the other hand, would submit: (i) Respondent No. 2 having been working against a permanent vacancy both as a Laboratory Assistant which is a Class IV post and as an Assistant Clerk which is a Class III post for a. long time, the Industrial Court acted within its jurisdiction in passing the impugned award. (ii) As pursuant to the order passed by the High Court in another writ petition, the services of those who were junior to the respondent No. 2 were regularized, he was also entitled to similar benefit. 10. Concededly, Appellant is a University constituted by a statute. Who would be the officers and authorities ofthe University is specified in Section 8 ofthe Act. The competent authority of the University has made 'Statutes' in terms ofthe provisions ofthe Act.

The matter relating to appointment ofstaffis governed by Chapter XIII ofthe Statutes framed by the University, providing that all appointments shall be made strictly on the basis of merit. For the purpose ofappointing different categories of employees, provisions have been made for constitution of selection committees. Statute 10 reads as under: "10. Appointments of all other staffnot specifically provided for in the Act ofthese Statutes shall be made by the Kulpati with the approval ofthe Board except the following posts which may be filed by the Kulpati without reference to the Board namely; (a) The non-teaching posts carrying a scale the maximum ofwhich does not exceed Rs. 450/- including those which are filled by obtaining services of a person on deputation for a period upto three years from a regularly constituted service of State or Central Government or an autonomous body constituted by the State or Central Government. The upper limit ofRs.

450/-will be subject to alteration from time to time, by the resolutions ofthe Board of management, on the basis of rationalization or enhancement occurring on the basis ofthe decision ofthe Government. (b) The posts for which the Kulpati is the appointing authority under the provisions ofthe Act. " 11. The University Statute does not provide for appointment on dailywages or on an adhoc basis. Respondent No. 2 in his written statement filed before the Industrial Court did not make any averment that he had been appointed in terms of the provisions ofthe statute or prior thereto any advertisement therefor was made. According to him, he being a hard working, honest, efficient and eligible employee, was 'entrusted' with the work ofa Clerk from 1. 11. 1991. In his written statement, it was averred: C. S. AZAD KRISHI EVAM PRODYOGIKI VISHWA 711 "5.

That though the woiker was working against apennanent vacant post as a clerk in a pennanent manner, however, the employer is not giving him the actual scale ofpay and other allowances and benefits as that ofa pennanent clerk. However, he is still considered as a daily wager inspite of having worked since last 14 years continuously, which is illegal and wrong. " 12. A feeble attempt, however, was made by the learned counsel appearing on behalf of Respondent No. 2 to state that he had been appointed against a pennanent vacancy. In his written statement, he did not raise any such contention. It does not also appear from the records that any offer ofappointment was given to him. It is inconceivable that an employee appointed on a regular basis would not be given an offer of appointment or shall not be placed on a scale ofpay. We, therefore, have no hesitation in proceeding on the premise that Respondent No. 2 was appointed on daily-wages.

The Industrial Court in passing the impugned award proceeded on the premise that Respondent No. 2 had been working for more than 240 days continuously from the date of his engagement. It is now trite that the same by itself does not confer any right upon a woikman to be regularized in service. Working for more than 240 days in a year was relevant only for the purpose of application of Section 6N of the U. P. Industrial Disputes Act, 1947 providing for conditions precedent to retrench the workmen. It does not speak of acquisition of a right by the workman to be regularized in service. 13. In Executive Engineer, ZP Engg. Divn. And Anr. v. Digambara Rao and Ors. , [2004] 8 SCC 262, it was held: "It may not be out ofplace to mention that completion of240 days ofcontinuous service in a year may not by itselfbe a ground for directing an order ofregularisation. It is also not the case ofthe respondents that they were appointed in accordance with the extant rules.

No direction for regularisation oftheir services, therefore, could be issued. [See also Madhyamik Shiksha Parishad, UP. v. Anil Kumar Mishra and Ors. , [2005] 5 SCC 122 and State of UP. v. Neeraj Awasthi and Ors. , '[2006] 1 SCC 667] 712 SU. PREME COURT REPORTS [2007] 13 (Addi. ) S. C. R. 14. A similar question came up for consideration in a large number ofdecisions before this Court. We will, however, refer only to some of them. In A. Umarani v. Registrar, Cooperative Societies and Ors. , [2004] 7 SCC 112, this Court held: '"39. Regularisation, in our considered opinion, is not and cannot be the mode ofrecruitmi::nt by any "State" within the meaning of Article 12 of the Constitution of India or any body or authority governed by a statutory Act or the Rules framed thereunder.

It is also now well settled that an appointment made in violation ofthe mandatory provisions ofthe statute and in particular, ignoring the minimum educational qualification and other essential qualification would be wholly illegal. Such illegality cannot be cured by raking recourse to regularisation. (See State ofRP. v. Suresh Kumar Verma) 40. It is equally well settled that those who come by back door should go through that door. (See State ofU. P. v. U. P. State Law Officers Assn. ) 41. Regularisation furthermore cannot give permanence to an employee whose services are ad hoc in nature. " AConstitution Bench ofthis Court in Secretary, State ofKarnataka and Ors. v. Umadevi (3) and Ors. , [2006] 4 SCC 1 clearly held that an appointment de'hors the statutory rules would render the appointment nullity, stating: "18.

Without keeping the above distinction in mind and without discussion ofthe law on the question or the effect ofthe directions on the constitutional scheme ofappointment, this Court in Daily Rated Casual Labour v. Union ofIndia directed the Government to frame a scheme for absorption ofdaily-rated casual labourers continuously working in the Posts and Telegraphs Department for more than one year. This Court seems to have been swayed by the idea that India is a socialist republic and that implied the existence ofcertain important obligations which the State had to VIDYALAYAv. UNITED TRADES CONGRESS [SINHA,J. ] discharge.

While it might be one thing to say that the daily-rated workers, doing the identical work, had to be paid the wages that were being paid to those who are regularly appointed and are doing the same work, it would be quite a different thing to say that a socialist republic and its executive, is bound to give pennanence to all those who are employed as casual labourers or temporary hands and that too without a process of selection or without following the mandate of the Constitution and the laws made thereunder concerning public employment. The same approach was made in Bhagwati Prasad v. Delhi State Mineral Development Corpn. where this Court directed regularisation of daily-rated workers in phases and in accordance with seniority. 22. With respect, it appears to us that the question whether the jettisoning of the constitutional scheme of appointment can be approved, was not considered or decided. The distinction emphasised in R. N. Nanjundappa v. T. Thimmiah was also not kept in mind.

The Court appears to have been dealing with a scheme for "equal pay for equal work" and in the process, without an actual discussion ofthe question, had approved a scheme put forward by the State, prepared obviously at the direction ofthe Court, to order pennanent absorption ofsuch daily-rated workers. With respect to the learned judges, the decision cannot be said to lay down any law, that all those engaged on daily wages, casually, temporarily, or when no sanctioned post or vacancy existed and without following the rules ofselection, should be absorbed or made pennanent though not at a stretch, but gradually. Ifthat were the ratio, with respect, we have to disagree with it. " It was further held that no person who was temporarily or casually employed could be directed to be continued pennanently. It was also opined that by doing so it would be creating another mode of public employment which is not pennissible in law. [See also Punjab Water Supply & Sewerage Board v.

Ranjodh Singh and Ors. , [2007] 2 SCC 15. The High Court has relied upon a decision of this Court in Mahendra L. Jain and Ors. v. Indore Development Authority and Ors. , [2005] 1 SCC 639. Therein it is stated: "19. The question, therefore, which arises for consideration is as to whether they could lay a valid claim for regularisation oftheir services. The answer thereto must be rendered in the negative. Regularisation cannot re claimed as a matter ofright. An illegal appointment cannot be legalised by taking recourse to regularisation. What can be regularised is an irregularity and not an illegality. The constitutional scheme which the country has adopted does not j"' contemplate any back-door appointment. A State before offering public service to a person must comply with the constitutional requirements ofArticles 14 and 16 ofthe Constitution. All actions ofthe State must conform to the constitutional requirements.

A daily-wager in the absence ofa statutory provision in this behalf would not be entitled to regularisation. " [See also MP. Housing Board and Anr. v. Manoj Shrivastava, [2006) 2 SCC 702, MP. State Agro Industries Development Corpn. Ltd. and Anr. v. S. C. Pandey, [2006] 2 SCC 716, Indian Drugs & Phrmaceuticals Ltd. v. Workmen, Indian Drugs & Pharmaceuticals Ltd. , [2007] 1 SCC 408 and Gangadhar Pillai v. Siemens Ltd. , [2007] 1 sec 533]. 16. The Industrial Court, therefore, in our opinion, committed a serious error in passing the impugned award. The High Court unfortunately did not pose unto itselfa right question. It referred to a large number of decisions. Although most ofthe decisions referred to by the High Court 1 should have been applied for upholding the contention ofthe appellant herein, without any deliberation thereupon, the learned Judge has proceeded to determine the question posed before it on a wholly wrong premise. As noticed hereinbefore, it relied upon Mahendra L.

Jain (supra) which in no manner assists Respondent No. 2. 17. What was necessary to be considered was the nature of work undertaken by the University. It undertakes projects. For the said purpose, it may have to employ a large number ofpersons. Their services had to "' be temporary in nature. Even for that the provisions of Articles 14 and 16 are required to be complied with. In the event, the constitutional and C. S. AZAD KRISHI EVAM PRODYOGIKI VISHWA 715 VIDYALAYAv. UNITED TRADES CONGRESS [SINHA,J. ] statutory requirements are not complied with, the contract ofemployment would be rendered illegal. 18. Services ofRespondent No. 2 were not terminated. He has been continuing to serve the University. We have noticed hereinbefore that in writ petition filed by other employees on aconcession made by the counsel " for the University, a purported scheme dated 24. 04. 2000 has been formulated. Dr.

Padia in that view of the matter stated before us that despite the legal position, as noticed hereinbefore, in the event the case ofRespondent No. 2 comes within the purview ofthe said Scheme, his services shall be regularized when his turn comes therefor. 19. We place on record the aforementioned statement made by Dr. Padia that as and when Respondent No. 2 becomes entitled to be considered for being absorbed in the services ofthe University pursuant to the said scheme, his case may be considered. If his turn for consideration for regularization has already come, a decision thereupon shall be taken as expeditiously as possible. 20. The impugned judgment is set aside. The appeal is allowed with the aforementioned observations and directions. However, in the facts and circumstances of this case, there shall be no order as to costs. D. G. Appeal allowed.