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CASE NO.: Appeal (civil)  1600 of 2005

PETITIONER: The Workmen of Bhurkunda Colliery of M/s Central Coalfields Ltd.

RESPONDENT: The Management of  Bhurkunda Colliery of  M/s Central Coalfields Ltd.

DATE OF JUDGMENT: 27/01/2006

BENCH: Arun Kumar & Dalveer Bhandari

JUDGMENT: J U D G M E N T

WITH CIVIL APPEAL NO. 1601 OF 2005

Employers in relation to the Management of Bhurkunda Colliery  of M/s Central Coalfields Ltd., Ranchi          .... Appellant

Versus

Their Workmen represented by the General Secretary, Koyla Mazdoor Sabha, Bhurkunda Bazar, Ranchi                         ....Respondent

Dalveer Bhandari, J

       The main concept of regularization of Indian Industrial  jurisprudence is the subject-matter of adjudication in these  Civil Appeals.  We propose to dispose of both these appeals by  this judgment.

       Brief facts which are necessary to dispose of these  appeals are recapitulated as under:

       In these appeals, the award given by the Central  Government Industrial Tribunal has been upheld by the  learned Single Judge and appeals against the judgment of the  learned Single Judge have been dismissed by the Division  Bench of the Jharkhand High Court.   

       125 workmen were in the employment of Bhurkunda  Colliery in various capacities since before its take-over by the  Central Coalfields Ltd. (for short ’CCL’).  After the take-over by  the ’CCL’, the concerned workmen were employed  as  Mazdoors in certain engineering projects and were known as  Civil Engineering Workers.  The concerned workmen claimed  that such type of Civil Engineering Workers should be put on  regular basis as casual labour and in course of time they  should be regularized.

       The management of ’CCL’ also issued a direction that  such workmen who have completed 240 days of attendance  should be regularized.  In fact, a large number of workers  employed in Gidi-A Colliery of ’CCL’ were regularized on the  basis of certain directions of the Headquarter of ’CCL’. Even in  case of Bhurkunda Colliery, 39 workers of the said type were  also regularized.  

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       The Labour union took up the matter of the concerned  125 Civil Engineering Workers on the ground that the services  of these workers should be regularized.  The union raised a  demand that instead of regularizing the services of the  workers, the management retrenched the concerned workmen.   This gave rise to an industrial dispute.  On persuasion of the  union, with initial resistance, ultimately, the Home Ministry of  Government referred the dispute to the Tribunal for  adjudication.    

"Whether the demand raised by Koyla  Mazdoor Sabha in regard to alleged  discrimination in  employment/regularization of 125 casual  workers of Repair and Maintenance  Section (Civil) of Bhurkunda Colliery of  Central Coalfields Limited is justified?  If  so, what relief are these workmen  entitled?"

       The Presiding Officer of the Central Government  Industrial Tribunal (No.2), Dhanbad in the Award dated 15th  May, 1988 held that the dispute raised by the Labour union  on behalf of the concerned workmen was not stale as the  matter was being pursued by the union due to the stoppage of  work by the concerned workmen.  It was admitted by the  union that 21 workmen left the services and consequently the  number was reduced from 125 to 104. The Tribunal held that  the casual workmen of Bhurkunda Colliery also deserve the  same benefit which was given to the workmen of Giddi-A  Colliery and as such their services also deserve to be  regularized.   

       According to the Tribunal, on scrutiny, out of 104 casual  workmen, only 74 of them in Repairs and Maintenance (Civil)  Section of Bhurkunda Colliery of M/s ’CCL’ could justify their  claim.  As such, the management was directed to enlist those  74 workers as casual workmen and be provided with different  jobs in Category-I and they may be regularized after they have  fulfilled the condition of attendance in a year.  The Award of  the Tribunal was challenged. The management filed C.W.J.C.  No.1175 of 1989 and labour union filed C.W.J.C. No.1083 of  1991 and Koyla Mazdoor Sabha on behalf of 51 persons, who  were not granted any relief in the award, also filed C.W.J.C.  No.680 of 1999 and all the three writ petitions were heard  together by the learned Single Judge. The learned Single  Judge, who heard these three writ petitions did not interfere  with the Award of the Tribunal.  The Division Bench of the  Jharkhand High Court upheld the judgment of the Learned  Single Judge and consequently as directed by the Tribunal,  cases of 74 workmen were required to be considered for  regularization of their services after they have fulfilled the  condition of attendance in a year.

       We have heard the learned counsel appearing for the  workmen and the management at length.  We see no reason to  interfere with the findings of fact arrived at by the Tribunal  and affirmed by the learned Single Judge and the Division  Bench of the High Court.  The process of regularization which  has already been initiated must be completed as expeditiously  as possible or in any event, within two months from today.   

       In pursuance to the order of the High Court, the  management has deposited some amount towards the wages  with the High Court and the Registrar of the Jharkhand High

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Court has  been disbursing Rs.500/- per month to some of   the workmen.  Learned counsel appearing for the management  has also filed a list of workmen who were being paid wages @  Rs.500/- per month as per the order of the High Court out of  the amount deposited in the High Court by the management.   The Registrar of the High Court shall continue to pay Rs.500/-  to these workmen till their respective claims are verified.  We  direct the Registrar  of the High Court that their claims be  verified as  expeditiously as possible and in any event within a  period of two months.  In the facts and circumstances of these  cases, we direct that the amount already paid to the workmen  shall not be recovered and the Registrar of the High Court is  directed to ensure that the remaining balance amount after  verification of the claims be refunded to the management.  

       To avoid any further litigation, we direct the management  to submit a report to this Court regarding regularization of the  workmen within three months.    

       In the facts and circumstances it becomes imperative to  issue direction regarding regularization. The main object of  enacting Industrial and Labour laws is to ensure peace and  harmony between the employers and the employees in the  larger interest of the society.            The industrial growth leading to economic prosperity  largely depends on happy and healthy relationship between  employers and employees.

       As early as in 1967, this Court in the case of Hindustan  Antibiotics Ltd. v. Workmen  (AIR 1967 SC 948) observed that  the social and economic upliftment of the labour is absolutely  imperative for securing industrial peace.           Security of tenure is essential for an employee so that he  can give his best to the job.  This object can be attained by  regularization of the employees within a reasonable period.                  In the case of Calcutta Port Shramik Union v. Calcutta R.T.  Association (AIR 1988 SC 2168), this Court observed that the  object of enacting the Industrial Disputes Act, 1947 and of  making provision therein to refer disputes to tribunals for  settlement is to bring about industrial peace.                  This Court in S.M. Nilajkar and Others v. Telecom Distt.  Manager, Karnataka (2003) 4 SCC 27 was of the opinion that  the labour laws being beneficial pieces of legislation are to be  interpreted in favour of beneficiaries.   According to the Court,  in case of doubt or where it is possible to take two views of a  provision, the benefit must go to the labour.                        This Court in State of Haryana v. Piara Singh (1992) 4  SCC 118 held that so far as the work-charged employees and  casual labour are concerned, the effort must be to regularize  them as far as possible and as early as possible subject to  their fulfilling the qualifications, if any, prescribed for the post  and subject also to availability of work. If a casual labourer is  continued for a fairly long spell \026 say two or three years - a  presumption may arise that there is regular need for his  services.  In such a situation, it becomes obligatory for the  authority concerned to examine the feasibility of his  regularization.  While doing so, the authorities ought to adopt  a positive approach coupled with an empathy for the person.   

       In the matter of regularization, the main concern of the  Court is to see that the rule of law is respected and to ensure

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that the executive acts fairly and give a fair deal to its  employees consistent with the requirement of Articles 14 and  16 of the Constitution of India.  The State being a model  employer should not exploit the employees nor take advantage  of helplessness and misery of either the unemployed person or  the person concerned, as the case may be.  

       Where a temporary or ad hoc appointment is continued  for long, the Court presumes that there is regular need for his  services on a regular post and accordingly considers  regularization.    

       It is also our bounded duty to give expression to the  legislative intention for creating a healthy environment leading  to proper understanding and cooperation and in true sense a  partnership between the employers and the employees in  cases of industrial disputes.             The report of the National Commission of Labour  published by Ministry of Labour, Employment and  Rehabilitation in 1969 has dealt with the aspect of industrial  peace and harmony.  It will be appropriate to recapitulate  some aspects of that report:

       According to the philosophy of the First Five Year Plan,  peace in industry has a great significance as a force for world  peace if we consider the wider implications of the question.   The answer to class-antagonisms and world conflicts will  arrive soon if we succeed in discovering a sound basis for  human relations in industry.  Economic progress is also  bound up with industrial peace.  Industrial relations are,  therefore, not a matter between employers and employees  alone, but a vital concern of the community which may be  expressed in measures for the protection of its larger interests.

       A quest for industrial harmony is indispensable when a  country plans to make economic progress.  It may sound  platitudinous but it is nevertheless true that no nation can  hope to survive in the modern technological age, much less  become strong, great and prosperous, unless it is wedded to  industrial development and technological advance.  Economic  progress is bound up with industrial harmony for the simple  reason that industrial harmony inevitably leads to more  cooperation between employers and employees, which results  in more productivity and thereby contributes to all-round  prosperity of the country.  Healthy industrial relations, on  which industrial harmony is founded, cannot therefore be  regarded as a matter in which only the employers and  employees are concerned; it is of vital significance to the  community as a whole.  That is how the concept of industrial  harmony involves the cooperation not only of the employers  and the employees, but also of the community at large.  This  cooperation stipulates that employees and employers  recognise that though they are fully justified in safeguarding  their respective rights and interests, they must also bear in  mind the interests of the community.  In other words, both  employers and employees should recognise that as citizens  they ought not to forget the interests of the community.  If this  be the true scope of the concept of industrial harmony, it  follows that industrial harmony should and ought to  emphasise the importance of raising productivity, because the  resulting accelerated rate of growth will lead to the good of the  community as a whole.  That, we consider, is the true  significance of the doctrine of industrial harmony in its three- dimensional aspect.

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       It is plain that in order to create a proper climate for  industrial harmony and to cultivate proper attitudes in the  minds of the employees and the employers alike, it is essential  that employees must be well organized and trade unionism  must become strong.  Employers must be progressive and  must recognize whole-heartedly the validity of the doctrine  that they and their employers are partners in the adventure of  the growth of the industrial life of the country.  The history of  the trade union movement in the world shows that healthy  and proper attitudes are not easily born and the trade union  movement does not become strong without resistance from the  employers, and such resistance leads to a long and bitter  strife.  Quest for industrial harmony has thus been sometimes  stalled or delayed or frustrated by struggles between the  employers and the employees.

       The growth of industrial jurisprudence in India,  subsequent to 1950, bears close resemblance to the growth of  Constitutional Law in relation to the fundamental rights  guaranteed to the citizens.    

       The industrial jurisprudence, likewise, seeks to evolve a  rational synthesis between the conflicting scheme of the  employers and employees.  In finding out solutions to  industrial disputes great care is always taken, as it ought to  be, to see that the settlement of industrial disputes does not  go against the interests of the community as a whole.   In the  decision of major industrial disputes, three facts are thus  involved.    The interests of the employees which have received  constitutional guarantees under the Directive Principles, the  interests of the employers which have received a guarantee  under Article 19 and other Articles of Part III, and the interests  of the community at large which are so important in a Welfare  State.  It is on these lines that industrial jurisprudence has  developed during the last few decades in our country.

       When we modulate our thinking process and attitude  according to the underlying philosophy of Industrial and  Labour jurisprudence and apply the laws meant for industrial  peace and harmony, then the conclusion becomes irresistible  that the employees who have been working since 1973-74  required to be regularized as expeditiously as possible.

       Both employers and employees have their respective  obligations.  They must have the appreciation of each others’s    responsibilities, duties and obligations.  The Trade Union and  Labour Union should understand and appreciate the fact that  Labour is not a commodity nor is it a mere supply of Labour  force at the management’s disposal.  Essentially, Labour is the  real basis that underlines the production of goods and  services.  Through the work should the human personality  and its sense of responsibility be able to unfold, management  should appreciate this and always attribute its success to the  trained and effective labour force.  It must be understood by  all concerns that both the employees and employers are vital  for any industry and unless there is proper coordination, a  smooth functioning of any industry would be difficult.   

       On the basis of the aforementioned observations, these  appeals are disposed of.  In the facts and circumstances of  these cases, we direct the parties to bear their respective  costs.