{"id":225325,"date":"2020-02-08T11:57:42","date_gmt":"2020-02-08T06:27:42","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=225325"},"modified":"2020-02-14T10:14:18","modified_gmt":"2020-02-14T04:44:18","slug":"larger-bench-to-decide-if-labour-and-industrial-courts-have-power-to-order-regularisation","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/02\/08\/larger-bench-to-decide-if-labour-and-industrial-courts-have-power-to-order-regularisation\/","title":{"rendered":"Larger bench to decide if Labour and Industrial Courts have power to order regularisation"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Supreme Court<\/strong>: The bench of Dr. DY Chandrachud and Ajay Rastogi, JJ has called for the reconsideration of the division bench verdict in <em>Oil and Natural Gas Corporation Limited v Petroleum Coal Labour Union, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/zlt8l1DX\">(2015) 6 SCC 494<\/a> <\/em>\u00a0[PCLU] and has, hence, referred the matter to a larger bench.<\/p>\n<p style=\"text-align: justify;\">The issues referred to the larger bench are:<\/p>\n<ul style=\"text-align: justify;\">\n<li>The interpretation placed on the provisions of clause 2(ii) of the Certified Standing Orders;<\/li>\n<li>The meaning and content of an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the ID Act; and<\/li>\n<li>The limitations, if any, on the power of the Labour and Industrial Courts to order regularisation in the absence of sanctioned posts. The decision in PCLU would, in our view, require reconsideration in view of the above decisions of this Court and for the reasons which we have noted above.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">The Court was hearing a batch of appeals from the judgments of the High Courts of Andhra Pradesh, Delhi, Madras and Uttarakhand wherein the PCLU judgment was relied upon. The Court noticed that <em>in PCLU judgment, clause 2(ii) of the Certified Standing Orders had been construed to confer a right to regularisation on the completion of 240 days of service in a calendar year<\/em>. However, while construing the provisions of clause 2(ii), the Court did not consider the earlier decisions in:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Mahatma Phule Agricultural University v Nasik Zilla Sheth Kamgar Union, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/5P89988A\">(2001) 7 SCC 346<\/a><\/li>\n<li>Regional Manager, State Bank of India v Raja Ram, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/1dMjLKH1\">(2004) 8 SCC 164<\/a><\/li>\n<li>Regional Manager, SBI v Rakesh Kumar Tewari, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/4cE5evd2\">(2006) 1 SCC 530<\/a><\/li>\n<li>Oil &amp; Natural Gas Corpn. Ltd v Engg. Mazdoor Sangh, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/sRbfIoXI\">(2007) 1 SCC 250<\/a><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Noticing that the PCLU judgment did not consider earlier judgments and hence, required reconsideration, the bench explained that the decision in PCLU holds that the workmen upon completion of 240 days? service in a period of 12 calendar months \u201care entitled for regularisation of their services into permanent posts of the corporation\u201d. The Court further held that under clause 2(ii), upon the completion of 240 days of service in a calendar year, the workmen have \u201cacquired valid statutory right\u201d and ought to have been \u201cgranted the status of regular employees\u201d of the corporation on the ground that the corporation which is an instrumentality of the State under Article cannot act arbitrarily or unreasonably.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201cWhether the provisions of clause 2(ii) confer an absolute right to regularisation merely on the completion of 240 days of service in a calendar year is a point which needs to be reconsidered both having regard to the express language of the provision as well as the earlier decisions of this Court including that in the case of <a href=\"http:\/\/www.scconline.com\/DocumentLink\/sRbfIoXI\"><em>Engineering Mazdoor Sangh<\/em><\/a>.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">The Court also analysed the applicability of the principles set out and formulated by the Constitution Bench in <em>Secretary, State of Karnataka v Umadevi, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/HtXkqxE0\">(2006) 4 SCC 1<\/a><\/em> in the context of industrial adjudication wherein a distinction was made between appointments or selections which are merely irregular and those which are illegal.<\/p>\n<p style=\"text-align: justify;\">After analysing all various decisions, the Court made the following propositions:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order regularisation, where such a direction would in the context of public employment offend the provisions contained in Article 14 of the Constitution;<\/li>\n<li>The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary or daily wage employees despite their performing the same work as regular workmen on lower wages;<\/li>\n<li>The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of service;<\/li>\n<li>Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of Article 14; and<\/li>\n<li>In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">The Court, hence, held that the decision in PCLU needs to be revisited in order to set the position in law which it adopts in conformity with the principles emerging from the earlier line of precedent. It, hence, referred the matter to a larger bench.<\/p>\n<p style=\"text-align: justify;\">[Oil and Natural Gas Corporation v. Krishan Gopal, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/9bLsW2Fy\"><b>2020 SCC OnLine SC 150<\/b><\/a>, decided on 07.02.2020]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: The bench of Dr. DY Chandrachud and Ajay Rastogi, JJ has called for the reconsideration of the division bench verdict <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[],"class_list":["post-225325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Larger bench to decide if Labour and Industrial Courts have power to order regularisation | 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contempt&#8217;, disobedience of order should be wilful, deliberate &#038; with full knowledge of consequences","author":"Bhumika Indulia","date":"May 20, 2020","format":false,"excerpt":"Supreme Court:\u00a0A Division Bench of A.M. Khanwilkar and Dinesh Maheshwari, JJ., while addressing a contempt petition held that, \"...to constitute civil contempt, it must be established that disobedience of the order is wilful, deliberate and with full knowledge of consequences.\" Grievance Non compliance of direction to Food Corporation of India\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":213034,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/04\/01\/ker-hc-writ-court-not-a-proper-forum-for-ventilation-of-grievance-pertaining-to-regularisation-of-service\/","url_meta":{"origin":225325,"position":1},"title":"Ker HC | Writ Court not a proper forum for ventilation of grievance pertaining to regularisation of service","author":"Bhumika Indulia","date":"April 1, 2019","format":false,"excerpt":"Kerala High Court: The Division Bench of V. Chitambaresh and A.M. Babu, JJ. dismissed an appeal challenging the learned Single Judge\u2019s order dismissing a petition filed for regularisation of service. Appellant herein had filed a claim for regularisation in service but the same was turned down in 2001. The writ\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":239455,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/11\/21\/hp-hc-whether-appropriate-government-while-exercising-powers-under-s-101-of-industrial-disputes-act-1947-decline-reference-to-the-tribunal-on-the-ground-of-delay-stale-claim-or\/","url_meta":{"origin":225325,"position":2},"title":"HP HC | Whether \u2018Appropriate Government\u2019 can while exercising powers under S.10(1) of ID Act decline reference to Tribunal on the ground of delay, stale claim or faded\/eclipsed dispute; larger bench to decide","author":"Editor","date":"November 21, 2020","format":false,"excerpt":"Himachal Pradesh High Court: A Division Bench of Tarlok Singh Chauhan and Jyotsna Rewal Dua JJ., while deciding the present matter challenging order of the State Government, referred several precedents to opine that the issue requires adjudication by a larger bench. \u00a0Background In the present bunch of writ petitions, the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":280679,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/12\/30\/delhi-high-court-denies-regularization-request-of-a-messenger-boy-of-a-bank-for-not-being-appointed-through-a-regular-process\/","url_meta":{"origin":225325,"position":3},"title":"Delhi High Court denies regularisation request of a messenger boy of a Bank for not being appointed through a regular process","author":"Editor","date":"December 30, 2022","format":false,"excerpt":"The Delhi High Court upheld the order of the Labour Court wherein it was held that since the messenger boy of a Bank was unable to establish that he moved an application for absorption in the service in pursuance of the Bipartite Settlement, therefore, he was not entitled to regularisation\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-418.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":226676,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/03\/06\/supreme-court-monthly-roundup-february-2020\/","url_meta":{"origin":225325,"position":4},"title":"Supreme Court Monthly Roundup \u2013 February 2020","author":"Prachi Bhardwaj","date":"March 6, 2020","format":false,"excerpt":"TOP STORIES Sabarimala| Questions of law can be referred to larger bench while hearing a review petition; Issues framed The 9-judge bench hearing the Sabarimala reference has held that the Supreme Court can refer questions of law to a larger bench while exercising its review jurisdiction after renowned jurist and\u00a0senior\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/08\/Supreme-Court_1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":369581,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/12\/11\/bharat-drilling-prohibited-claim-clauses-arbitration-sc-larger-bench\/","url_meta":{"origin":225325,"position":5},"title":"Supreme Court: Bharat Drilling Not an Authority on Applicability of prohibited claim clauses to Arbitral Tribunal; 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