31 July 2009
Supreme Court
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GUJARAT AGRICULTURAL UNIVERISTY Vs ALL GUJARAT KAMDAR KARMACHARI UNION

Case number: C.A. No.-007358-007358 / 2002
Diary number: 14173 / 2002
Advocates: SANJAY KAPUR Vs RESPONDENT-IN-PERSON


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Reportable  

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 7358 OF 2002

Gujarat Agricultural University             …Appellants

Versus   

All Gujarat Kamdar Karmachari Union        …Respondent

With

Civil Appeal Nos. 7427-7490/2002

JUDGEMENT

R.M. Lodha, J.

This batch of 64 appeals is directed against the judgment  

passed  by  the  High  Court  of  Gujarat  on  March  22,  2002  

whereby the Division Bench  of that Court confirmed the award  

dated August 20, 1997 passed by Industrial Tribunal, Gujarat,  

Ahmedabad.   Since  the  judgment  as  well  as  the  questions  

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raised herein are common, these appeals are disposed of by a  

common judgment.

2. Gujarat  Agricultural  University,  appellant,  

(hereinafter  referred  to  as,  “Employer”),  is  an  educational  

institution  fully  aided  by  the  Government  of  Gujarat.   It  is  

engaged in the educational activities, particularly, in agriculture  

and allied sciences and humanities in the State of Gujarat.  It  

has various agriculture Research Stations at different places in  

the State of Gujarat.  In discharge of its duties and functions  

under  the  Gujarat  Agriculture  University  Act,  1969,  the  

employer  engages daily  rated  labourers  for  various  activities  

relating  to  agriculture  research  farms,  fisheries,  dairies,  

veterinary and other allied sciences.

3. On  August  22,  1980  during  the  pendency  of  the  

conciliation proceedings (Conciliation Case No. IDC 480/80), a  

settlement  under  Section  12  read  with  Section  2(p)  of  the  

Industrial Disputes Act, 1947 (for short, “ID Act”)  was entered  

into  between  the  representative  of  the  employer  and  the  

representatives of the workmen.

4. On July 27,  1983, Banaskantha General Workers Union  

gave a notice to the employer under Section 19(2) of the ID Act  

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for termination of the settlement as the workmen intended to  

submit  their  demands afresh.   However,  no  fresh  settlement  

took place between the employer and the workmen.   

5. With  regard  to  the  daily  rated  labourers  working  in  

Dantiwada  Zone,  it  appears  that  a  dispute  arose  about  

regularization of their services which was ultimately referred for  

industrial adjudication at the instance of the  respondent,  All  

Gujarat Kamdar Karmachari Union,  (hereinafter referred to as,  

“Union”), vide Reference  (IT) No. 463/91  before the Industrial  

Tribunal,  Ahmedabad.    The  said  reference  is  still  pending  

before that Tribunal.

6. Somewhere in the year 1991, the Government of Gujarat  

issued notification by which 2nd  and 4th  Saturday were declared  

holidays.  The employer vide its circular dated October 3, 1991  

also declared 2nd  and 4th  Saturday of every month holidays  

and  11  days  Diwali  holidays.  Accordingly,  the  daily  rated  

labourers engaged by the employer were not provided any work  

during these holidays.

7. The daily rated labourers (64 in number) working in the  

Dantiwada Zone felt aggrieved by the change of their service  

conditions  during  the  pendency  of  the  Reference   (IT  No.  

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463/91)  without  following  the  prescribed  procedure  and,  

accordingly, filed separate complaints under Section 33A  of the  

ID Act  alleging the   breach of  Section 33.  These workmen  

prayed for declaration that the action of the employer in forcing  

leave on 2nd and 4th Saturday and  11 days during Diwali without  

pay was illegal. They prayed that the employer be ordered  to  

pay wages in lieu of all such forced holidays/leave granted to  

them.

8. The  employer contested these complaints.   In their reply  

they  raised a preliminary objection about the maintainability  of  

the complaints on the ground that the demands made in the  

complaints  have  no  nexus   or  connection  with  the  pending  

reference  and,  therefore,  there  is  no  breach  of  Section  33.  

The employer set up the plea that being fully aided government  

institution,  it  followed the rules of  the State  government  and  

declared  2nd and  4th Saturday  and  11  days  holidays  during  

Diwali.  The  employer  asserted  that  there  is  no  breach  of  

Section 9A of the ID Act nor there is any change in the service  

conditions of  the concerned workmen.    The employer also set  

up the plea in its reply that when institution remains completely  

closed,  it would not be possible to call the workmen for work  

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and, therefore, the question of paying wages, for the day  on  

which work is not done, does not arise.   

9. The  parties  led  oral  evidence  and  also  produced  

documentary evidence in support of their respective case.

10. After hearing the parties,  the Industrial Tribunal passed  

the award, operative part whereof,  reads thus:

“It is hereby ordered that the opponents shall  pay  wages  to  the   complainants  herein  in  lieu  of  additional  leaves/holidays  granted  to  the  complainants in  excess of  weekly off  i.e.  one day’s  leave  once  in  a  week  on  and  from  May  1991  by  putting/marking their presence on those days.

That the action of the opponents in granting 11  days  leave  without  pay  in  Diwali   days  to  the  complainants,  if  granted,  is  hereby  declared  illegal  and opponents are hereby ordered to pay wages in  lieu  of  all  such  holidays/leave  granted  to  the  complainants treating them as present.

It is hereby further ordered that hence forth the  opponents shall not grant leave without pay for more  than one day in a week to the complainants herein.

Benefit  of  this  order  will  be  given  to  those  complainants only who have been fulfilling the terms  and conditions of the settlement dated 22.8.1980.

Opponents  shall  pay  to  each  complainant  individually an amount of Rs. 250.00 towards costs of  the complaints of the aforesaid complaints.”

11. The  award  of  the  Industrial  Tribunal  came  to  be  

challenged by the employer by filing Special Civil applications  

before the High Court.  The Single Judge dismissed  Special  

Civil Applications.  Dissatisfied thereby, the employer  preferred  

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LPAs  but without any success and  hence,  these appeals by  

special leave.

12. Mr.  P.S.  Patwalia,  learned  Senior  Counsel  for  the  

appellant submitted :

(i) that  daily  wagers  do  not  hold  any  post  and,  therefore, there are no conditions of service for  such  employees;   they  are  engaged  as  and  when there is requirement of work and they are  paid wages for the work done by them and the  question of change in conditions of service of  daily  rated  employees  does  not  arise.  Reliance  is  placed  on  Secretary,  State  of  Karnataka  and  Others  vs.  Umadevi(3)  and  Others1 and   Lily  Kurian  vs.  Sr.  Lawina  and  Others2.    

(ii)  that even if it be assumed that the settlement dated  August  22,  1980  provides  for  conditions  of  service  of  daily  rated  employees  covered thereby, the settlement had come to an  end on expiry of three years and as a matter of fact, a notice  of termination of settlement dated July 23, 1983 was given  by Banaskantha General Works Union.  In view of the said  notice intending to terminate the settlement dated August 22,  1980, on the expiry of its tenure, the settlement has come to  an  end  on  October  21,  1983  and,  therefore,  the  circular  dated October 3, 1991 declaring the 2nd  and 4th Saturday of  every month and 11 Diwali holidays cannot be made subject  to the said settlement.

(iii) that  the  complaints  filed  by  the  workmen  were  not  maintainable under Section 33A  as  there was no breach of  Section  33  inasmuch  as  the  alteration  in  the   alleged  conditions  of  service  was  not  related   to  nor  has  any  connection  with  industrial  dispute  pending  adjudication  before the Industrial Tribunal.

(iv) that in any case, no wages should have been ordered to be  paid  to  the  workmen  for  the  days  they  did  not  work.  Reliance  is  placed  on  Union  of  India  and  Others  vs.   

1  (2006)4 SCC 1 2 1979 (1) S.L.R. 26

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Rajendra Kumar Sharma3 and U.P. State Brassware Corpn.  Ltd. And Another vs. Uday Narain Pandey4.

13. Mr.  G.K.  Parwar,   President  of  the  union  strongly  

supported  the  impugned   judgment  and  relied  upon  the  

following decisions of this court, viz. Life Insurance Corporation  

of India vs. D.J. Bahadur and Others5, Calcutta Electric Supply  

Corporation Ltd.  Vs.  Calcutta Electric  Supply Workers’ Union  

and Others6, Bareilly Holdings Ltd. Vs. Workmen7, Jaipur Zila  

Sahakari Bhoomi Vikas Bank Ltd. Vs. Ram Gopal Sharma and  

Others8 and  M/s  Lokmat  Newspapers  Pvt.  Ltd.  Vs.  

Shankarprasad9.

14. We may immediately refer to the observations made in  

paragraph 48 of the judgment of this Court in case of Umadevi  

upon which reliance was placed by Mr. P.S. Patwalia, learned  

Senior Counsel which read thus:

“There  is  no  fundamental  right  in  those  who  have  been employed on daily wages or temporarily or on  contractual basis, to claim that they have a right to be  absorbed in service. As has been held by this Court,  they cannot be said to be holders of a post, since, a  regular appointment could be made only by making  

3 1993 Supp (2) SCC 366 4 (2006) 1 SCC 479 5 (1981) 1 SCC 315 6 (1994) 6 SCC 548 7 (1979) 3 SCC 257 8 2002-I-LLJ SC 280  9 1999 (6) Supreme 104

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appointments  consistent  with  the  requirements  of  Articles 14 and 16 of the Constitution.”

15. In Lily Kurian this Court said :

“13.  The expression “conditions of service” covers a  wide  range,  as  explained  by  the  Privy  Council  in  N.W.F. Province v.  Suraj Narain [AIR 1949 PC 112],  which was approved by this Court in State of U.P. v.  Babu Ram [AIR 1961 SC 751]. These decisions and  also a later decision of this Court in  State of M.P. v.  Shardul Singh [(1970) 1 SCC 108] have made it clear  that  the  expression  “conditions  of  service”  includes  everything from the stage of appointment to the stage  of  termination  of  service  and  even  beyond,  and  relates  to  matters  pertaining  to  disciplinary  action.  Thus,  the  expression  “conditions  of  services”  as  explained in the decisions of the Privy Council and of  this  Court  includes  the  power  to  take  disciplinary  action.  The  rules  regarding  these  matters  are  contained  in  Chapter  57  of  the  ordinances.  The  management  of  a  private  college  under  Ordinance  33(2) is constituted the appointing and the disciplinary  authority in respect of imposition of punishment. In the  course  of  any  disciplinary  proceeding,  a  right  of  appeal  before  the  Vice-Chancellor  is  given  to  a  teacher  dismissed  from  service  under  Ordinance  33(4) of the Ordinances. The High Court thus rightly  held that the right of appeal conferred by Ordinance  33(4)  forms part  of  the  “conditions  of  service”  and,  therefore, is valid.”

16. It is true that daily wagers are not the holders of a  

post  but  the  expression  ‘conditions  of  service’  occurring  in  

Section 33(1)(a) is not restricted to the holders of post.  The  

expression, ‘conditions of service’ is of wide range and relates  

to  the  workmen  who may be  temporary,  adhoc,  daily  rated,  

permanent,  semi-permanent  or  otherwise.  What  Section  33  

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provides  is  that,  inter  alia,  during  the  pendency  of  any  

proceeding  before  the  Labour  Court  or  Industrial  Tribunal  in  

respect  of  an  industrial  dispute,  the  employer  shall  not   in  

regard  to  the  matter  connected  with  the  dispute,   change  

conditions of service prejudicially to such workmen. We find no  

merit in the contention that since daily rated employers do not  

hold any post and, therefore, there are no conditions of service  

for such employees.

17. Insofar  as  the  present  case  is  concerned,  the  

settlement dated August 22, 1980 provides that those workmen  

who have worked for 200 days in each year continuously for  

last three years prior to July 1, 1980 and those workmen who  

have worked for 240 days  continuously for a period of three  

years after July 1980 shall be treated as permanent. It further  

provides that instead of taking work for 9 hours in a day for five  

days in a week, work shall be taken from them for 8 hours in a  

day for  six days in a week.  The settlement  provides for  one  

weekly off. The relevant portion of the settlement reads thus :

“2. On  and  from  1.7.1980,  daily  rated  workmen  who are made permanent,  shall  be paid Rs.  6.00 per day instead of Rs.5.50 per day.  This  rate  of  daily  wages  also  includes  dearness  allowance  and  one  leave  once  a  week  (one  weekly off).

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3. Those workmen who have worked in the University for 200  days in a year continuously for a period of last three years  prior to 1.7.1980,  shall be treated as permanent workmen.  Thereafter,  in the month of July in each year,  as per the  following norms they shall be made permanent:

Those workmen who have worked for 200 days  (presence  of  200  days)  in  each  year  continuously  for  last  three  years  prior  to  1.7.1980 and those workmen who have worked  for  240 days in each year  continuously for  a  period of three years after 1.7.1980,  shall be  treated  as  permanent  and  after  1.7.1980  instead of taking work from them for  6 hours  for one day and for 9 hours in a day for  five  days in a week, work shall be taken from them  for 8 hours in a day for six days in a week.”

18.  Surely, the aforenoticed provision in the settlement  

is nothing but  conditions of service of the concerned workmen.  

19. The question now to be considered is whether the  

settlement  dated  August  22,  1980  became  inoperative   on  

expiry  of  its  tenure  for  which   a  notice  was  given  by  

Banaskantha General Workers Union.   The  answer has to be  

in the negative. In the case of  Life Insurance Corporation of   

India vs. D.J. Bahadur and Others5, this Court held:

“34. The core question that first falls for consideration  is as to whether the Settlements of 1974 are still  in  force. There are three stages or phases with different  legal  effects  in  the  life  of  an  award  or  settlement.  There is a specific, period contractually or statutorily  fixed as the period of operation. Thereafter, the award  or settlement does not become non est but continues  to  be  binding.  This  is  the  second  chapter  of  legal  

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efficacy but qualitatively different as we will presently  show.  Then  comes  the  last  phase.  If  notice  of  intention to terminate is given under Section 19(2) or  19(6) then the third stage opens where the award or  the settlement does survive and is in force between  the parties as a contract which has superseded the  earlier  contract  and  subsists  until  a  new  award  or  negotiated settlement takes its place. Like nature, law  abhors  a  vacuum  and  even  on  the  notice  of  termination under Section 19(2) or (6) the sequence  and  consequence  cannot  be  just  void  but  a  continuance  of  the  earlier  terms,  but  with  liberty  to  both sides to raise disputes, negotiate settlements or  seek  a  reference  and  award.  Until  such  a  new  contract  or  award  replaces  the  previous  one,  the  former settlement or award will regulate the relations  between  the  parties.  Such  is  the  understanding  of  industrial law at least for 30 years as precedents of  the High Courts and of this Court bear testimony. To  hold to the contrary is to invite industrial chaos by an  interpretation of the ID Act whose primary purpose is  to obviate such a situation and to provide for industrial  peace. To distil  from the provisions of Section 19 a  conclusion  diametrically  opposite  of  the  objective,  intendment  and  effect  of  the  section  is  an  interpretative stultification of the statutory ethos and  purpose.  Industrial  law frowns  upon  a  lawless  void  and under general law the contract of service created  by  an  award  or  settlement  lives  so  long  as  a  new  lawful  contract  is  brought  into  being.  To  argue  otherwise is  to  frustrate the rule  of  law.  If  law is  a  means to an end — order in society — can it commit  functional  hara-kiri  by  leaving  a  conflict  situation  to  lawless void?”

20. It is an admitted position that no new settlement has  

been  entered  between  the  employer  and  the  workmen  

subsequently nor any award has replaced the settlement dated  

August 22, 1980. In this view of the matter,  it has to be held  

that the settlement dated August 22, 1980 continues to regulate  

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the conditions of service of the workmen covered thereby.  The  

contract of service or the conditions of service provided in the  

settlement holds the field until new lawful settlement is brought  

into being.     As  a matter of fact, the employer was well aware  

of this legal position and, therefore,  the daily rated labourers  

governed by the settlement were continued to be given  only a  

day off in a week until  the change was effected vide circular  

dated October 3, 1991. Thus,  the Industrial Tribunal as well as  

the High Court cannot be said to have erred in relying  upon the  

settlement dated  August 22, 1980.

21. In  the  case  of  Bhavnagar  Municipality  vs.  Alibhai   

Karimbhai  and  Others10 ,  this  Court  held  that  the  following  

conditions have to be followed in order to invoke the conditions  

of Section 33:

(a) there has to be a proceeding in respect of an  Industrial Dispute pending before the Tribunal,

(b) the alteration  has to be in  the conditions of  service which are applicable immediately before the  commencement of the tribunal proceedings,

(c) the alteration in the conditions of service has to  be related to a matter pending before the tribunal,  

(d) the workmen whose conditions of service are  altered must be related to the matter,

10 AIR 1977 SC 1229

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(e) the alteration of conditions of service must be prejudicial to  the workmen.

22. In Blue Star Employees Union vs. Ex Off. Principal  

Secy. to Govt. and Another11,  this Court held thus:

“  5. Thus,  the  contravention  of  the  provisions  of  Section 33 of the Act is the foundation for exercise of  the power under Section 33 (sic 33-A) of the Act. If  this issue is answered against the employee, nothing  further  survives  for  consideration  or  action  by  the  Tribunal  under  Section  33  (sic 33-A)  of  the  Act.  In  other words, an application under Section 33-A of the  Act without proof of contravention of Section 33 of the  Act would be incompetent. This is the view expressed  by  this  Court  in  several  decisions  including  the  decisions  in  Punjab  National  Bank  Ltd. v.  Workmen,[AIR 1960 SC 160],  Punjab  Beverages  (P) Ltd.  v.  Suresh Chand  [(1978) 2 SCC 144 ],  Syndicate  Bank  Ltd. v.  K.  Ramanath  V.  Bhat  [AIR  1968 SC 231]. Indeed this Court in Orissa Cement  Ltd. v.  Workmen  [(1960)  2  LLJ  91  (SC)] while  dealing with the identical  provisions as contained in  Sections 33 and 33-A of the Act in a complaint made  under Section 23 of the Industrial Disputes (Appellate  Tribunal) Act, 1950 examined this contention that the  finding of  the Appellate Tribunal  in  the proceedings  instituted under Section 23 of the Appellate Tribunal  Act amounted to res judicata and it was not open to  the Tribunal to consider the validity or the propriety of  the impugned order of discharge in the reference. The  Tribunal  in  that  case  had  held  that  on  the  earlier  occasion the Appellate Tribunal had found that there  was  no  contravention  of  Section  22  and  that  was  really decisive of the proceedings and held that the  alternative finding made in the said proceedings on  the merits  was no more than obiter  and cannot  be  pleaded  in  support  of  the  bar  of  res  judicata.  This  Court  was  not  prepared  to  hold  that  this  view  is  erroneous and, therefore, the Tribunal was justified in  dealing with the merits of the dispute.”

11 (2000) 8 SCC 94

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23. It must be held, as has been consistently said, that  

the  foundation  for  exercise  of  the  power  in  the  proceedings  

under Section 33A  is a  breach  of the provisions of Section 33  

of the ID Act.

24. We  now  turn  to  the  next  question,  whether  the  

alteration  in  the conditions  of  service  has any connection  or  

nexus with the industrial dispute pending before the Industrial  

Tribunal, Ahmedabad.

25. The   industrial  dispute  referred  for  adjudication  at  the  

instance of the union  before the Industrial Tribunal,  Ahmedabad   is  

in  respect  of  regularization  of  daily  rated  labourers  working  in,  

Dantiwada Zone.  That all these daily rated labourers are covered by  

the settlement dated August 22, 1980 does not seem to be in dispute.  

The Industrial Tribunal while dealing with the question whether the  

alteration  in  the  service  conditions  has  any  connection  with  the  

pending industrial dispute observed:

“….. It is  at present not possible to say that the  workmen are directly connected with the dispute as  well as with the subject matter of the reference.  But if  it  is  viewed with  large  angle,  the  said  complaint  is  connected  with  the  pending  reference  because  subject  matter  of  the  reference  is  whether  all  the  workmen  should  be  treated  permanent  and  accordingly  be  given  benefits  attached  to  the  permanent service or not?  This also include working  hours  and  holidays  etc.  of  the  employment  of  the  

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workmen.  If workmen are made permanent, they will  also get leave benefits and other rights etc. given to  the permanent workmen.  Further, it is the contention  of the complainant  that  under the settlement,  it was  agreed  to   provide  work  for  six  days,  but  instead,  more than one leave are given.  If  this is permitted to  be so done, that would straightway and simply mean  that by ignoring the seniority of the workmen and by  taking  work  from  them  in  some  other  manner,  leave/holidays of more than one day in a week are  being given to the workmen as a result of which the  total working days of the workmen will be reduced to  such an extent that as and when time of disposing of  the  reference  on  merits  would  come,   though  the  workmen would legally be entitled to get work for six  days  in a week,   their  total  working days would be  reduced in such an extent that that would also affect  the case of  the workmen to make them permanent  and  though  the  workmen  are  entitled,   opponent  would submit in that event that workmen are working  for  very  less  number  of  days  and,  therefore,  they  should not be made permanent.  It was agreed to give  work  for  six  days  in  a  week  under  the  settlement  arrived at under Section 2(P) of the ID Act  and the  same is  part  and parcel  of  the  service   conditions.  Thus,  subject matter of the complaint is connected  with the subject matter of the reference.”

26. Mr. P.S. Patwalia, learned Senior Counsel would submit  

that   the Industrial Tribunal was not very sure that the  complainants  

were directly connected  with the subject matter of the reference and  

that being the position, one of  the fundamental conditions of  Section  

33 that the alteration in the conditions of service  has to be  related to  

a matter pending before the Tribunal is not satisfied.  We are afraid  

that this is not a fair reading of  the finding recorded by the Industrial  

Tribunal.   Moreover,   we  have  carefully  examined  the  industrial  

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dispute  referred  vide  Reference  (IT)  No.  463/91  which  is  pending  

before the  Industrial Tribunal,  Ahmedabad and we find that change  

in  conditions  of  service  is  in  regard  to  a  matter  which  is  not  

unconnected  with  the   pending  dispute.  We  find  ourselves  in  

agreement with the view of the Division Bench of the High Court in  

this regard:

“ …. Therefore,  it  would be crucial  to examine  whether any  alteration in the  conditions of service  was effected by the appellant  and,  if  the answer is  positive,  whether  it  was  in  regard  to  a  matter  connected with the dispute.   It is seen that the main  dispute and reference during the pendency of which  the  conditions of service were allegedly changed was  for  regularization  to  secure  the  benefits  of  permanency in service.   It was also the case of the  complainants  that  they had  completed  240 days or  more  days of  work  in  each  of  the  three  preceding  years of their service and that on that basis they were

entitled to be made permanent.  Pending the  adjudication of such dispute and demand,  increase in  the number of unpaid holidays and resultant reduction  of  the  working days would  necessarily  be  a  matter  connected  with  the  dispute  insofar  as  not  only  the  record of number of days worked would be altered but  there  would  be  an  effective  reduction  in  the  total  wages  to  which  the  workman  concerned  would  be  actually  entitled.   It  needs  no  elaboration  that  the  demand  and  dispute  for  regularization  in  service  based on continued employment under the employer  arises to prevent sudden discontinuation and to claim  benefits  at  par  with  regular  employees  so  as  to  achieve stability and an equitable standard of living.  While  struggling  to  achieve  that  goal,   if  forced  unemployment  were  thrust  upon  a  labourer  in  the  name of additional holidays,  it cannot be said that the  change  in  condition  of  service  was  in  regard  to  a  matter which was not connected with the dispute….”

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27. Thus, there is no flaw in the view of the Industrial  

Tribunal as well as of the High Court that the settlement dated  

August 22, 1980 is still in force and  binding on the employer  

and the action of the employer in giving  leave for more than  

one day in a week after  May, 1991 and 11 days festival leave  

amounts to changing the conditions of service of the daily rated  

labourers who are covered by the settlement dated August 22,  

1980 without following the prescribed procedure and, therefore,  

illegal.

28. Having  held  so,  the  question  still  remains  to  be  

answered is  :  whether the Industrial  Tribunal  was justified in  

exercise of its judicial discretion in directing the employer to pay  

wages to the complainants in excess of a weekly off by marking  

their presence on those days and also to pay wages for Diwali  

Holidays by marking them present.

29. One of the  principles well known in the matters of  

service is that if a person has worked, he must be paid and if he  

has not worked, he should not be paid.  This is expressed in  

doctrine, ‘no work, no pay’.   Another oft-repeated principle in  

service jurisprudence is that if an employer has wrongly denied  

an employee his due then in that case he  should be given full  

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monetary benefits.  But none of these principles is absolute  nor  

can these principles be applied as a rule of thumb.   Of late, the  

Courts have followed the  principle that a person is not entitled  

to get something only because it would be lawful to do so.

30. In  U.P.  State Brassware Corpn.  Ltd.  and Another  

vs.  Uday  Narain  Pandey12,   the  question  for  consideration  

before this Court  was whether a direction to pay back wages  

consequent  upon  a  declaration  that  the  workmen  has  been  

retrenched  in  violation  of  Section  6-N  of  the  U.P.  Industrial  

Disputes Act  (equivalent  to Section 25 of the ID Act) as a rule  

was proper exercise of discretion.  It was held:

“41. The Industrial Courts while adjudicating on  disputes  between  the  management  and  the  workmen, therefore, must take such decisions  which  would  be  in  consonance  with  the  purpose  the  law  seeks  to  achieve.  When  justice  is  the  buzzword  in  the  matter  of  adjudication under the Industrial Disputes Act,  it would be wholly improper on the part of the  superior  courts  to  make them apply  the cold  letter  of  the  statutes  to  act  mechanically.  Rendition  of  justice  would  bring  within  its  purview giving a person what is due to him and  not what can be given to him in law. 42. A person is not entitled to get something  only because it would be lawful to do so. If that  principle  is  applied,  the  functions  of  an  Industrial  Court  shall  lose  much  of  their  significance. 43. The  changes  brought  about  by  the  subsequent  decisions  of  this  Court,  probably  having  regard  to  the  changes  in  the  policy  decisions  of  the  Government  in  the  wake  of  prevailing  market  economy,  globalisation,  privatisation and outsourcing, is evident.

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44. ………………………………………………… ………. 45. The  Court,  therefore,  emphasised  that  while granting relief, application of mind on the  part  of  the  Industrial  Court  is  imperative.  Payment of full back wages, therefore, cannot  be the natural consequence.”

31. In  the  matters  of  termination  of  workman  in  violation  of  

Section  25F  of  the  ID  Act,  as  regards  the  consequential  

relief, in the recent judgments, this Court  has consistently  

taken the view that relief by way of reinstatement  and back  

wages is not automatic.  In a recent judgment delivered by  

us on July 14, 2009 in the case of  Jagbir Singh vs. Haryana  

State  Agriculture  Marketing  Board  &  Anr.  (Civil  Appeal  

No.4334/09 (@ out of SLP© No. 987/2009),  we considered  

U.P. State Brassware Corpn. Ltd.vs.  Uday Narain Panday12  

and  few  other   decisions  of  this  Court  viz.,   Uttaranchal  

Forest Development Corpn. V. M.C. Josh13, State of M.P. &  

Ors.  v.  Lalit  Kumar  Verma14,    M.P.  Administration  v.   

Tribhuwan15, Sita Ram v. Moti Lal Nehru Farmers Training  

Institute16,  Ghaziabad  Development  Authority  &  Anr.  v.   

12 (2006) 1 SCC 479 13 (2007) 9 SCC 353 14 (2007) 1 SCC 575 15 (2007) 9 SCC 748 16 (2008) 5 SCC 75

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Ashok  Kumar  &  Anr.17 and   Mahboob  Deepak  v.  Nagar  

Panchayat, Gajraula18 and held:

“15. It  would  be,  thus,  seen  that  by  catena  of  decisions  in  recent  time,  this  Court  has  clearly  laid  down  that  an  order  of  retrenchment  passed  in  violation of  Section 25F although may be set  aside  but an award of reinstatement should not,  however,  be automatically passed.  The award of reinstatement  with full  back wages in a case where the workman  has completed 240 days of work in a year preceding  the date of termination, particularly, daily wagers has  not been found to be proper by this Court and instead  compensation  has  been  awarded.  This  Court  has  distinguished  between a  daily  wager  who does  not  hold  a post  and a permanent  employee.  Therefore,  the view of the High Court that the Labour Court erred  in granting reinstatement and back wages in the facts  and circumstances of the present case cannot be said  to suffer  from any legal flaw. However, in our view,  the High Court erred in not awarding compensation to  the  appellant  while  upsetting  the  award  of  reinstatement and back wages. As a matter of fact, in  all the judgments of this Court referred to and relied  upon by the High Court while upsetting the award of  reinstatement  and  back  wages,  this  Court  has  awarded compensation.”

  

32. Although   the  aforesaid  observations  have  been  

made  in the context of the illegal retrenchment of the workmen  

in violation of Section 25F of the ID Act, but, in our considered  

view, in a case such as present one where no work was taken  

from the daily rated employees on 2nd and 4th Saturday and for  

11 days’ during Diwali festival after May, 1991,  the payment of  

full wages for the aforesaid period should not follow as a matter  17 (2008) 4 SCC 261 18 (2008) 1 SCC 575

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of course.  It is true that these daily rated employees could not  

work  on  those  days  because  of  the   wrongful   act  of   the  

employer but  at  the  same time it  cannot  be overlooked that  

change in the working days was brought about by the employer  

because the  Government of Gujarat had declared 2nd and 4th  

Saturday  as  holidays  and  also  festival  holidays  for  its  

employees.  The employer being fully aided institution had to  

follow the suit and it issued circular  on the  same lines to bring  

working days pattern on par with the government departments.  

The action of  the employer insofar  as daily rated employees  

governed  by  the  settlement  dated  August  22,  1980  is  

concerned  was  wrong  as  they  did  not  follow  the  prescribed  

procedure before  bringing out the  change but nevertheless the  

said action cannot be said to be actuated with ulterior motive.  

In  these peculiar  circumstances,  a just  balance needs to  be  

struck and the principle of ‘no work, no pay’  does not deserve  

to be given a complete go-by.  In our thoughtful consideration,  

the interest  of  justice would be subserved if  the employer  is  

directed  to  pay  50% wages  to  the   complainants  in  lieu  of  

additional leave/holidays granted to them in excess of one day  

weekly off and 11 days Diwali holidays from the month of  May,  

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1991.  We  order accordingly.

33. The  appeals  stand  partly  allowed  as  indicated  

above.  The appellant shall calculate the due amount as afore-

directed  and  pay the   same to  the   complainants  within  six  

weeks from today failing which the unpaid amount shall  carry  

an interest @ 8% per annum from the date  it became due until  

the date of payment.   The parties will bear their own costs.

34. We  direct  the  Industrial  Tribunal,  Ahmedabad  to  

dispose  of  Reference  (IT  No.  463/91)   as  expeditiously  as  

possible and preferably within six months from the date of the  

receipt of this  order.  

……………………J (Tarun Chatterjee)

…….……………..J         (R. M. Lodha)

New Delhi July 31, 2009.

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