Lal Mohammad & Ors vs Indian Railway Construction Co.Ltd. & ...

These appeals are directed against the order passed by the Allahabad High Court dated May 21, 2004 whereby the Full Bench of the High Court has disposed of all the writ petitions filed by the workmen against Indian Railway Construction Co. Ltd.(hereinafter referred to as Company) and the Regional Manager, IRCON, Rihand Nagar, Sonbhadra. The Full Bench held that the petitioners are not entitled to benefit of continuation of service or regularization as the project stood closed on 6.2.1998. It was held that project stood completed in all respect except necessary electric or other odd works left over. It was also held that petitioners did not apply for recruitment in service of the Company as per the Service Rules and those who appeared and were found suitable were selected and appointed under the service rules of the Company but others who could not appear, their services were terminated in accordance with law. Hence, in total analysis, it was held that sentiments must yield to the cold logic of law, however, hard the case may be. Hence all writ petitions were dismissed.

Company on the other;

Some were appointed as clerks, account-clerks, store clerks, store cashiers, non-technical supervisors, site supervisors etc. Initially these workmen were required to undertake training and were, therefore, treated as appointed on ad hoc basis. They were not appointed on regular basis. They were supposed to be given pay scale after successful completion of the training. They were placed in regular timescale. They were subject to be transferred to any other project of the Company in India. They were not required to undertake any other job or business without permission of competent authority. After completion of project they were served with the notices of retrenchment in August/September, 1993. They were rendered surplus and hence retrenchment benefit under Section 25-F(b) of the Act was offered and they were advised to collect their other dues, namely; provident fund, gratuity, leave salary etc. in accordance with the rules of the Company in force at the time of the Project. These retrenchment notices were challenged by the writ petitioners by filing number of writ petitions under Article 226 of the Constitution of India, against respondent Company. In those writ petitions among other arguments, which were sought to be raised like retrenchment is bad as they are recruiting fresh people and their retrenchments were illegal and also violative of Articles 14, 16 & 21 of the Constitution of India, an additional ground was taken that the respondents had illegally invoked the provisions of Chapter V-A of the Industrial Disputes Act, 1947 but in fact Chapter V-B of the said Act applies as more than hundred workmen were being employed by the respondent Company and therefore, retrenchment of the petitioners was required to be complied with the provisions of Section 25-N of the Act, which were not followed and termination is illegal and void on that ground.

Hence the matter came up before the Division Bench of the High Court of Allahabad and in the Division Bench there was difference of opinion between two learned Judges. One of Hon'ble Judges constituting the Division Bench allowed the writ petition and quashed the notices vide order dated 17 May, 2002. The other Hon'ble Judge of the Division Bench dismissed the writ petition. Therefore, the matter was referred to a third Judge. Since both the learned Judges have passed the judgment constituting Division Bench, therefore, the reference to third Judge was not found to be proper and this was challenged by the employer before this Court and this Court vide its order dated 17.10.2003 directed that the matter be heard and disposed of on merits in accordance with law by the Full Bench of the High Court and remitted this matter to the Full Bench. Accordingly, the Hon'ble Chief Justice of the High Court constituted the Full Bench by order dated 12.11.2003 and referred the matter to the Full Bench. The Full Bench after considering the matter came to the conclusion that the petitioners are not entitled to any benefit as aforesaid. Hence the present Special Leave Petitions against the order passed by the Full Bench dated May 21, 2004.

6. You will not save with the prior permission of the Competent Authority, apply for any appointment outside the company. You will have to withdraw your application for appointment elsewhere made prior to the date of issue of these orders and will not appear for interview or accept any employment it offered.

(3) Where an application has been made under sub-section (1) and the appropriate government does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application is made, the permission applied for shall be deemed to have been granted on the expiration of the said period of sixty days.

(4) An order of the appropriate government granting or refusing to grant permission shall, subject to the provisions of sub-section (5), be final and binding on all the parties and shall remain in force for one year from the date of such order.

(5) The appropriate government may, either on its own motion or on the application made by the employer or any workman, review its order granting or refusing to grant permission under sub-section (2) or refer the matter to a Tribunal for adjudication:

(b) of Section 25-F shall not exceed his average pay for three months.

Before parting with the case, we may clarify that if any compensation amount has not been paid to the workers then that should be determined and be paid to them forthwith, if not paid so far.

Therefore, in the light of discussion made above, we are of the opinion that the view taken by the Full Bench is correct. The petitioners are not entitled to be regularise their services in the Company and they are not employees of Company. They are only entitled to compensation as indicated above. The above appeals and writ petitions filed by workers are dismissed. No order as to cost.