Kandla Port Workers Union vs Fci

1. By an order dated 09.05.1996, the Central Government transferred 15 employees who were working in the Vacuvator Division of the Kandla Port Trust (for short, ‘KPT’) to the Food Corporation of India (for short, ‘FCI’) with effect from 01.01.1973. Aggrieved by the benefit not being extended to the remaining 306 employees of the KPT who were transferred to FCI, the Appellant-Union filed Special Civil Application No.6891 [1] of 1996 in the High Court of Gujarat. The application was allowed by a learned Single Judge and a direction was issued to the FCI, Respondent No.1-herein to issue an appropriate order clarifying that all the 321 employees who were working in the Vacuvator Division of the KPT should be treated to have been transferred under Section 12A of the Food Corporation of India Act, 1964 (“the FCI Act, 1964” for short) w.e.f. 01.01.1973. Respondent No.1 appealed to the Division Bench of the High Court. The judgment of the learned Single Judge was set aside and it was held by the Division Bench, by order dated 09.05.1996, that 306 members of the Appellant-Union were not entitled to the benefits granted to 15 employees. The correctness of the judgment of the Division Bench is challenged by the Appellant by way of filing the above Appeals.

2. An agreement was entered into between the Government of India and the Trustees of the Port of Kandla (KPT) on 08.04.1965 by which the KPT accepted [2] to act as an agent of the Government for the purpose of assembly, operation and maintenance of wheat discharging machines on behalf of the Government of India in connection with discharge of food grains from tankers/ vessels arriving at Kandla as and when required by the Government of India. According to the Agreement, the KPT was responsible for the operation and maintenance of the machines with a view to obtain the best possible performance therefrom and for the said purpose, KPT shall ensure adequate staff at various stages of operation and maintenance. It was further agreed that the Government shall, on conclusion of the Agreement, take over the staff engaged by the KPT.

3. An order was passed by the FCI on 18.09.1973 taking over the staff of the Vacuvator Division of the KPT w.e.f. 01.01.1973. By the said order, the regular employees of KPT were taken over as confirmed in the appropriate posts and they would be governed by the service conditions prescribed in the FCI (Staff) [3] Regulations, 1971 (“the Regulations” for short). The work charge employees were taken over as regular employees w.e.f. 01.01.1973 and they would be governed by the service conditions in respect of leave, probation, disciplinary action, etc., according to the Regulations. The employees were made eligible to the pay as fixed and indicated in the Annexure to the said order w.e.f. 01.01.1973 in the FCI’s scale of pay. The employees who were taken over would be governed by the Food Corporation of India CPF Regulations. All the employees who worked in the Vacuvator Division of KPT joined and continued to work in the FCI.

5. The reference was allowed and Respondent No.1 was directed to give an option to the 15 persons whose names were mentioned in the award as per Para 3 of the Circular dated 01.05.1976 and fix their pay and increments accordingly. The said workmen were held to be entitled to exercise option under Section 12A (4) of the FCI Act, 1964 on their transfer to the FCI w.e.f. 01.01.1973. Respondent No.1 was unsuccessful in the challenge made to the award before the learned Single Judge of the High Court. In a reference made by the [5] Government of India under Section 10(2) of the Industrial Disputes Act, 1947, the Central Government Industrial Tribunal directed seniority to the employees of the FCI in the Vacuvator Division from the dates of their initial appointment in KPT.

12. The order dated 09.05.1996 was passed by the Government of India granting the relief of transfer of the 15 employees to the FCI w.e.f. 01.01.1973. This was in compliance with the direction issued by the Industrial Tribunal by its award dated 05.08.1991.

15. The Division Bench of the High Court directed that Respondent No.1-FCI shall make payment of gratuity to those employees who shall give details, such as the [16] dates of their joining in the KPT, by treating them as employees of the FCI.

16. Though, we are not in agreement with the judgment of the Division Bench that the award of the Industrial Tribunal did not deal with question No.2 in the reference made to it, for the reasons recorded above we hold that the Appellants are not entitled to the relief claimed by them. Therefore, the Appeals are dismissed.

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