Bombay High Court High Court

Borivali (West vs The Presiding Officer on 12 August, 2008

Bombay High Court
Borivali (West vs The Presiding Officer on 12 August, 2008
Bench: S.A. Bobde
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         IN THE HIGH COURT OF JUDICATURE AT BOMBAY

           ORDINARY ORIGINAL CIVIL JURISDICTION

               WRIT PETITION NO.1589 OF 2006




                                                                       
    Nilesh M. Mahadeshwar




                                               
    a citizen of India, Age 39 years,

    residing at C-711, Shivdarshan,

    Satyanagar Co-operative Housing




                                              
    Society, Saibaba Mandir Main Road

    Borivali (West), Mumbai 400 092.              : Petitioner




                                     
        V/s.

    1. The Presiding Officer
                     
       Central Government Industrial

       Tribunal No.1, Mumbai
                    
       Shram Raksha Bhvan,

       Sion, Mumbai 400 022.

    2. The Seamen's Provident Fund
      


       Commissioner, having office at
   



       Krupanidihi, 3rd floor,

       Walchand Hirachand Marg,





       Ballard Estate, Mumbai 400 001.            : Respondents

                        ...

    Mr.Jay Prakash Sawant for the petitioner.





    Ms S. Priya for respondent no.2.

                        ...

                                      CORAM : S.A.BOBDE, J.

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                                                 DATE : AUGUST 12, 2008.

    ORAL JUDGEMENT:

    1.      The     petitioner         has       challenged      the      award       dated

    1.12.2005       of    the Central Government Industrial                      Tribunal




                                                                                    
    No.1,    Mumbai,       holding         that the action of           the      Seamen's




                                                            
    Provident        Fund        Commissioner          in      terminating               the

petitioner’s service is legal and justified.

2. The petitioner was employed as a Junior Assistant with

effect from 25.4.1994. The appointment order stated that

his appointment was purely provisional for a period of six

months and conditional upon: (i) showing aptitude to

work;

(ii) punctuality in attendance; and (iii) devotion

to duties. The petitioner’s services were liable for

termination at any time without assigning any reason. The

period of six months was to expire on 24.10.1994. His

services were terminated with effect from 21.10.1994 i.e.

three days before the specified term.

3. The petitioner prayed for a reference before the

appropriate Government. The Government rejected his

prayer, inter alia, on the ground that the request was

delayed and he had not completed 240 days. He, therefore,

approached this Court. In Nilesh M. Mahadeshwar v.


    Union     of India & Anr., reported in (2003 III CLR 854),                               a

    Division      Bench     of     this Court held that             the      Government




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    could    not    have    refused to refer the            dispute         since       it

    existed      and merely because he had not completed 240 days,

    it    could    not    be    said that the         dispute      could       not      be

    referred      since the dispute was triable under section                         25H




                                                                                 

of the Industrial Disputes Act, 1947, hereinafter referred

to as the “Act”, even in respect of a workman who has not

completed 240 days. After the order of this Court, the

Central Government referred the matter to the Industrial

Tribunal which decided the same by the impugned award.





                                              
    4.     The    Central Government Industrial Tribunal No.1                         has

    rejected      the    petitioner's         case on the ground            that      the

    petitioner      was
                           
                           employed       in a temporary capacity                for      a

    fixed    period.       His      services     are     not     liable        to       be
                          
    terminated      at any time without assigning any reason.                           In

    the    circumstances,        the     termination did         not      amount        to

retrenchment by virtue of section 2(oo)(bb) of the Act and

the provisions of the Act which deal with retrenchment did

not apply to the petitioner’s case.

5. Mr.Sawant, the learned counsel for the petitioner,

challenged the award of the Industrial Tribunal on the

ground that the Industrial Tribunal has committed an error

of law in not treating the petitioner’s termination as

retrenchment. According to the learned counsel, the

Industrial Tribunal ought to have held that the

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petitioner’s termination was without following the

procedure prescribed under section 25F of the Act. No

notice or one month’s salary in lieu of notice was given

and that, in any case, the act of not re-employing the

petitioner was contrary to section 25H of the Act since

others had been employed after the petitioner’s

termination. It was also contended by Mr.Sawant that the

provisions of the Model Standing Orders framed under the

Industrial Employment (Standing Orders) Act, 1946, in

particular standing order nos.2 and 13 apply, as a result

of which the petitioner’s services could not have been

terminated without one month’s notice in writing with

reasons or wages in lieu thereof. The contention advanced

before this Court were also advanced before the Industrial

Tribunal. The Industrial Tribunal held that the

petitioner’s appointment was for a fixed period and

clearly governed by clause (oo)(bb) of the Act and,

therefore, section 25F did not apply. The Industrial

Tribunal relied on the judgement of the Supreme Court in

Venugopal v. Divisional Manager, LIC, reported in (1994)

2 SCC 323, wherein the Supreme Court held that the

employer could terminate the service in terms of the

letter of appointment unless it was a colourable exercise

of power. Having regard to the condition in the

petitioner’s appointment letter that the services could be

terminated at any stage without assigning any reason, the

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Industrial Tribunal applied the ratio of the decision of

the Supreme Court in Escorts Limited v. Presiding

Officer, reported in 1997 II SCC 521, wherein it was held

that such a termination would not amount to retrenchment

and did not apply the provisions of section 25F and 25G of

the Act. The learned counsel for the petitioner relied on

a decision of the Supreme Court in Central Bank of India

v. Satyam & Ors., reported in 1996 II CLR 1095. That

case has no application to the present case since that

case involves the services of a workman who has been in

continuous service of not less than one year. In such

case, the Supreme Court observed that section 25F would

apply to

the retrenchment of a workman who has been in

continuous service of less than one year.

6. The learned counsel for the petitioner next relied on

the decision of the Delhi High Court in Gopal v. MDC &

Anr., reported in 2003 III CLR 1016. The Delhi High Court

relied on the decision of the Supreme Court in Samishta

Dube v. City Board, Etawah & Anr., reported in 1999 I CLR

854, took the view that it cannot be said that the workmen

who had not completed 240 days of service had no

industrial rights under the Act and, therefore, held that

section 25G was applicable in such a case. That case has

no application to the facts of the present case. The

petitioner has not established any breach of section 25G

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to the effect that he was not the last person to be

employed in that category. In any case, as observed

earlier, there is a clear and cogent finding of the

Industrial Tribunal that the termination of the

petitioner’s services does not amount to retrenchment.

That finding is a valid finding and section 25G would have

no application.





                                                            
    7.      It was next contended by the learned counsel for                              the

    petitioner,         relying         on the decision in S.M.             Nilajkar          &




                                                 
    Ors.     v.    Telecom District Manager, Karnataka, reported in

    2003    II CLR 233, that the termination of the petitioner's

    services       could
                              
                              be     said to be retrenchment               because        the

    respondent       has      not       shown that he was         appointed          for      a
                             
    project       which    came         to an end    simultaneously             with      the

    termination of his services.                  That case greatly differs in

    facts    from       the    present case.         There      the      employer         had
      


    contended       that the workmen were engaged as casual workers
   



    in   a project.        He had apparently not adduced any evidence

to prove in support of the contention and further that the

project had come to an end. In the circumstances, the

Supreme Court held that the termination of service of a

workman engaged in a scheme or project may not amount to

retrenchment within the meaning of sub-clause (bb) subject

to the following conditions being satisfied:-

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               "(i)    that    the workman was employed                   in     a

project or scheme of temporary duration;




               (ii)    the employment was on a contract, and




                                                                                    
               not    as    a daily-wager        simplicitor,             which




                                                            
               provided      inter      alia that      the       employment

               shall    come to an end on the expiry of                      the

               scheme or project;          and




                                                           
               (iii)    the    employment        came        to     an       end




                                             
               simultaneously        with the termination of the

scheme or project and consistently with the

terms of the contract;

               (iv)    the    workman      ought       to      have        been

               apprised      or    made aware of        the       abovesaid

               terms    by the employer at the               commencement
      


               of employment."
   



    For   the reasons stated above, the reliance of that                              case





    is misplaced.



    8.    It    was    lastly      contended      by    Mr.Sawant            that       the





    termination       was    in    violation of Model             Standing           Order

    no.13.      For    terminating        the service of            a     workman,         a

    notice     of one month in writing with reasons or wages                             in




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    lieu thereof shall be given by the employer.                    There is no

    merit    in    this contention in view of that very                  Standing

    Order    which      provides that no notice of          termination            of

    employment      is    necessary in case of temporary and                  badli




                                                                              
    workmen.      It is clear that the petitioner was employed on




                                                      
    a    temporary      basis   i.e.    of   an    essentially         temporary

    nature    likely to be finished within a limited period                        in

    accordance      with    the order of appointment.             There is         no




                                                     
    material      to    show that the work in which the              petitioner

    was    appointed      was   not likely to be finished              within        a




                                            
    limited period.        The petitioner was appointed as a Junior

    Assistant in the Accounts Department.              From the fact that

    accounts
                           
                  continued, it cannot be inferred that the                     work

for which the petitioner was appointed also continued.

9. In this view of the matter, there is no merit in the

challenge to the award which does not suffer from any

error of law apparent from the record. The Writ Petition

is, therefore, dismissed. The rule shall stand

discharged.

S.A. BOBDE, J.

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