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Supreme Court of India

KANPUR ELECTRICITY SUPPLY CO. LTD.versusSHAMIM MIRZA

Citation
2008 INSC 1277
Decided
7 November 2008
Disposal
Case Partly allowed

Holding

The workmen proved an employer‑employee relationship with the appellant and are entitled to reinstatement, but are not entitled to back wages as they were not regular recruits.

Summary

Kanpur Electricity Supply Co. Ltd. (appellant) terminated the services of two cashiers, Shamim Mirza and Manoj Srivastava, alleging they were employees of a contractor. The workmen claimed they were regular employees of the company and sought reinstatement with back wages under Sections 6N, 6P and 6Q of the Uttar Pradesh Industrial Disputes Act, 1947. The adjudicatory authority and the High Court held the workmen were employees and ordered reinstatement with back wages, which the appellant challenged. The Supreme Court affirmed that the workmen had discharged the burden of proving an employer‑employee relationship and were entitled to reinstatement, but held that back wages were not payable because the workmen were not regular recruits and the necessary qualifications and recruitment process were not established. Consequently, the Court allowed the appeals in part, upholding reinstatement and setting aside the award of back wages.

Issues considered

  • The existence of an employer‑employee relationship between the workmen and the appellant under the Uttar Pradesh Industrial Disputes Act, 1947.
  • The allocation and degree of burden of proof in establishing such a relationship.
  • Whether the workmen are entitled to reinstatement after illegal termination.
  • Whether the workmen are entitled to full or partial back wages and the factors governing such entitlement.
  • The propriety of the High Court’s modification of the back‑wages award.

Legislation cited

Subjects

employer-employee relationshipburden of proofreinstatementback wagesindustrial disputetermination of serviceUttar Pradesh Industrial Disputes Act

Judgment

                       [2008), 15 S.C.R. 850


A          KANPUR ELECTRICITY SUPPLY CO. LTD.
                                 II.
                         SHAMIM MIRZA
                 (Civil Appeal No. 6585 of 2008)
                     _ NOVEMBER 7, 2008
B
             -[C.K. THAKKER AND D.K. JAIN, JJ.]

        Uttar Pradesh Industrial Disputes Act, 1947:

c       ss.' 6N, 6P and 6Q- Termination of service- Completion
  of 240 days - Burden of proof - Held: B,urden to prove that
  claimant was in employment of particular management,
  primarily lies on the person who claims to be so - However,
  degree of proof varies from case to case - No abstract rule
0 can  be laid down - On facts, workmen discharged the burden
  to prove the employer-employee relation with appellant-
  em plo yer - Workmen adduced contemporaneous
  documentary evidence to prove that they were in regular
  employment of appellant - Appellant did not lead any
E evidence in rebuttal, as such adverse inference drawn against
  appellant - Thus, order of courts below that workmen
  established having worked with appellant for 240 days as
  their employee, justified - Order of re-instatement upheld,
  however, directions as regard payment of back wages set
  aside.                                                           I -
F
       s, 6N - Illegal termination of service- - Reinstatement -
  Back wages - Entitlement for - Held: Payment of full or
  partial back-wages is independent of reinstatement - It
  depends upon facts and circumstances of each case -, On
G facts, workmen on their own established having worked with
  appellant for 240 dc;iys when their services were terminated
  - However, no record to show that workmen were selected              ~.
  through regular recruitment process and that they were
  actually qualified for the post- Thus, payment of back-wages
                                                                   1
H                               850
        KANPUR ELECTRICITY SUPPLY CO. LTD. v. SHAMIM            851
                           MIRZA
 ).\   to workmen not warranted.                                      A
            Appellant-company opened various cash centres in
       different divisions and sub-divisions for collection of
       electricity bills from consumers. The contractor installed
       machines for collection of bills. The services of the
                                                                       B
       respondent-workmen were terminated w e f 02.09.1996.
       Respondents raised an industrial dispute that the
 ...   appellant illegally terminated their service and that they
       were entitled to be reinstated with continuity in service
       and full back wages. The State Government referred th.e
       dispute for adjudication. Respondents contended that c
       they were appointed as cashiers at two sub-stations and
       were also depositing the cash so collected in the
       Treasury. Appellant-management contended that there
       was no relationship of employer and employee between
       them and the applicants; and that the contractor was D
'J     responsible for the operation and upkeep of the machines
       installed for collection of electricity bills. The Adjudicatory
       Authority held that the respondents were in the regular
       employment of the appellant as cashiers and having
       worked for more than 240 days, their termination without E
       notice and payment of compensation was illegal. It
       passed an award directing re-instatement of the
       respondents-workmen with full back wages and
       continuity in service. Appellant filed writ petitions. High
       Court upheld the order of reinstatement. However, it .F
       modified the award to the extent that the respondents
       would be entitled to 50% of the back wages pursuant to
       the award. Hence the present appeals.

           Partly allowing the appeals, the Court
                                                                      G
           HELD: 1.1 In light of the facts and the evidence on
       record, the courts below were justified in holding that
t      both the workmen have established their claim of having
       worked with the appellant for more than 240 days as their
       employees. Thus, there is no reason whatsoever to              H
   · 852       SUPREME COURT REPORTS . [2008] 15 S.C.R.


 A interfere with the impugned judgments ·to that extent.
   [Para 20] [862-F-G]

         ' 1.2. The burden to prove that a claimant was in 'the
     en1ployment of a particula~ management, primarily lies on
 . ·the ·person who claims to ·be so bufthe degree· of proof,
  8 so required, varies from case to case. It is neither feasible
     nor 'advisable to lay down an abstract rule to determine
    'tlie employer-employee relationship. It is' essentially a
     question of fact to be determined by ha'ving regard to the
    ·cumulative effect of the entire material placed before the
· C adjudicatory forum by the claimant and the management.
     [Para 15] [860~E-F]
                                                                    .-
        1.3. In the instant case, the workmen did not produce
   the letters of appointment as also their salary slips but
 o they have been successful in adducing some
   contemporaneous documentary evidence, including
   ECR sheets bearing the signatures of the workmen and
   that of another senior officer of the appellant company
   which shows that they were collecting cash on behalf of
 E the appellant; depositing it in the van or central office of
   the appellant and were answerable to the officials of the
   appellant. [Para 16] [860-G-H; 861-A]

       1.4. The witnesses examined on behalf of the
  workmen stated that. it was only .the respondents who
F were collecting the cash and no other employee of the
  appellant. No evidence was led by the appellant in
   rebuttal. Furthermore, the appellant ·was called upon to
  produce the official records but they failed to do so, with
  the result the adjudicatory authority drew adverse
G inference against the appellant. In the light of the factual
  scenario as emerging from the evidence on record, the
  workmen had discharged the burden which lay on 'them
  to prove the employermemployee ·relationship with· the
  appellant. Also, evidence on record shows the
H enga·gemenf of the Workmen was prior to the- award .of
       KANPUR ELECTRICITY SUPPLY CO. LTD. v. SHAMIM       853
                             MIRZA

     contract to M/s VA. [Para 17) (861-C-E]                    A
 \
         Ram Singh & Ors. vs. Union Territory, Chandigarh and
     Ors: 2004 (1) SCC 126; Range Forest Officer vs. S. T.
     Hadimani 2-002 (3) SCC 25 and Bank-of Baroda vs.
     Ghemarbhai Harjibhai Rabari 2005 (10) SCC 792, referred    B
     to.

          2.1. Once the order of termination of service of an
     employee is set aside, ordinarily the relief of
     reinstatement is available to him. However, the entitlement
     of an employee to get reinstated does not necessarily C
     result in payment of full or partial back-wages, which is
     independent of reinstatement. While dealing with the
     prayer of back-wages, factual scenario, equity and good
     conscience and a number of other factors, like the
     manner of selection; nature of appointment; the period D
     for which the employee has work~d with the employer
     etc.; have to be kept in view. All these factors are
     illustrative and no precise formula can be laid down as
     to under what circumstances full or partial back-wages
     should be awarded. It depends upon the facts and E
     circumstances of each case. [Para 22] (863-A-C]

          2.2. The facts at hand do not warrant payment of
     back-wages to the respondents. In both the cases,
     though the respondents have succeeded in establishing
                                                                F
     that they were in the employment of the appellant when
     their services were terminated but nothing has been
     brought on record to. show that they were selected
     through a regular recruitment process. It has also not
     been shown whether they were actually qualified for the
     post of a cashier. Besides, on their own showing they had G
     worked with the appellant for about two years when their
     services were terminated. These circumstances, disentitle
.r   them from their claim for back wages. Thus, the orders
     of the High Court to the extent they affirm the directions
                                                                H
    854         SUPREME COURT REPORTS               [2008) 15 S.C.R.


A   of the adjudicatory authority with regard to the payment
                                                                       ,,:-\
    of back wages are set aside. [Para 24] [863-H; 864-A-C]

       General Manager, Haryana Roadways vs. Rudhan Singh
  2005 _(5). SCC 59; Haryana State Electronics Development
  Corpn. Ltd. Vs. Mamni 2006 (9) SCC 434; U.P. State
B
  Brassware Corpn. Ltd. & Anr. Vs. Uday Narain Pandey 2006
  (1) sec 479; UP. SRTC Vs. Mitthu Singh 2oos (7) sec 1so
  and Nagar Panchayat Kharkhauda vs. Yogendra Singh 2005                  ,___
  (13) sec 428, referred to.                                             \.
                                                                                     '
c                        Case Law Reference:
          2004 (1) sec 126           Referred to.          Para 11
          2002 (3) sec 25            Referred to.          Para 11

D         2oos (13) sec 428          Referred to.          Para 11
          2oos (10) sec 192          Referred to.          Para 12        .....,.-

          ·2oos (5) sec 59           Referred to.          Para 23
                                                                          •'
          2oos (9) sec 434           Referred to.          Para 23
E
          2006 (1 ). sec 479         Referred to.          Para 23
          2006 (7) sec 1ao           Referred to.          Para 23

      CIVIL APPELLATE JURISDICTION : Civil Appeal No.
                                                                        ,..k)
F 6585 of 2008.
                                                                                     \
         From the final Judgment and Order dated 14.12.2008 of
    the High Court of Judicature at Allahabad in Civil Misc. Writ
    Petition No. 1625 of 1999.

G                                 WITH

          C.A. No. 6586 of 2008                                                      .-.

      Rajiv Mehta, Biswanath Agarwalla and A. Henry for the
H Appellant.
                    KANPUR ELECTRICITY SUPPLY CO. LTD. v. SHAMIM               855
                                       MIRZA

                        R. Venkataramani, Sr. Adv~. Satya Mitra Garg, Aljo K.          A
           )..l
                   Joseph, Praveen ·chaturvedi and Nitin Bharadwaj for the
                   Respondent.

                       The Judgment of the Court was delivered by

                       O.K. JAIN, J. 1. Leave granted.                                 B

                       2. Since a common issue is involved in both the appeals,
           J,      these are being disposed of by this judgment.

                        3. The appeals are directed against two separate               c
                  judgments rendered by the High Court of Judicature at
                  Allahabad, upholding the Awards of: Labour Court (4) Kanpur
                  in l.D. No.70 of 1997 and Industrial Tribunal (3) Kanpur in l.D.
                  No.46 of 1997, collectively referred to as "the adjudicatory
                  authority", whereby the appellant had been directed to reinstate
                                                                                       D
                  the respective respondents- namely, Shamim Mirza and Manoj
      .._         Srivastava, the two workmen, with full back wages and continuity
       •          in service.

                       4. The appellant-company was constituted by the U.P.
                  State Government under Section 5 of the Electricity (Supply)         E
                  Act, 1948 and was charged with several duties, as enumerated
                  under Section 18 of the said Act, in relation to generation,
                  transmission and distribution of electricity within the State. The
                  appellant opened various cash centres in different divisions and
      ..A         sub-divisions for collection of electricity bills and for the said   F
                  purpose, invited tenders for installation of Bradma Machines
                  on contract basis. One such contract was awarded to Mis Vivek
                  and Associates in the year 1995. Under the agreed terms and
                  conditions, the machines were to be operated by the said
                  concern, through its employees, for which it was to be paid          G
                  Rs.175/- per day, per machine. The contract is stated to have
..,               continued till the year 1997.
       }-              5. Both the respondent-workmen raised an industrial
I      f
                  dispute, alleging that their services had been illegally
                  terminated by the appellant. Accordingly, the State Government       H
    856          SUPREME COURT REPORTS             (2008) 15 S.C.R.


A   referred, under Section 4K of the U.P. Industrial Disputes Act, .
    1947 (for short 'the Act'), the following dispute i.e. l.D. No.70
    of 1997 for adjudication:

          "Details of Industrial Dispute
B         Whether removal/termination of services of the workman
          Shri Shamim Mirza, son of Shri Atiq Mirza, Cashier, w.e.f.
          2.9.1996 by the Management is legal and justified? If not,
          to which relief/consequential benefits and from which date,
          the Workman concerned is entitled to?"
c
    (Except for change of name of the workman and date of
    termination of his services, the dispute referred in l.D. No.46
    of 1997 was on similar lines.)

        6. The case of the workmen in nutshell was that: they had
D been appointed as cashiers at two sub-stations when the
  appellant had adopted the policy of centralisation of all the 16-
  17 sub-stations for the purposes of collection of electricity bills;
  several new appointments were made for operating these new
                                                                         -•
   machines; before their appointment as cashiers, they were all
E given six months training for this work; apart from collecting the
   electricity bills, they were also depositing the cash so collected
   in the Treasury in Chief Office as per the instructions of the
  Assistant Engineer (D); suddenly their services were terminated
  without assigning any reason and without giving any notice to
F them whereas persons junior to them were still working on the
   posts of cashiers. Their plea was that since the termination of
  their services was in violation of the provisions contained in
   Sections 6N, 6P & 6Q of the Act, they were entitled to be
  reinstated with continuity in service and with full back wages.
G
        7. In the written statement filed before the adjudicatory
  authority, the stand of the appellant - management was that
  there was no relationship of employer and employee between
  them and the applicants and hence the dispute was not an
H industrial dispute; the post of the cashier was a promoti~n post
                KANPUR ELECTRICITY SUPPLY CO. LTD. v. SHAMIM                857
                            MIRZA [D.K. JAIN, J.]

              which could be filled up by promqtion from the cadre of              A
      \       assistant cashien the cash centres were opened in various
              divisions and sub-divisions for the qonvenience. of th~
              consumers for depositing their electricity bills; tenders were
              invited for installing Bradma Machines in these· centres on
              contract basis; the tender was awarded in favour of Vivek and        ,8
              Associates for the period from 1st July, 1995 to 30th June, 1996
              which period was later extended upto 31st July, 1997 and that
    ,..,      the contractor was responsible for the operation and upkeep
          ~   of the machines, though the cash was to be handled by
              appellant's cashier or its duly authorised representative and,       t
              therefore, the question of applicants' employment with the
              appellant did not arise at all. In other words, the stand. of the
              appellant was that the references in both the cases were
              factually and legally incompetent as the applicants were not
              "workmen" within the meaning of the Act.
                                                                                   D

..,....              8. Upon consideration of the evidence produced by both
               the parties, the adjudicatory authority formed the view that
               though no appointment letters had been filed by the workmen
               but it had come in evidence that before taking the work, letters
              were issued to them by an Assistant Manager of the appellant;        E
              though signatures of the applicants did not appear in any of the
              columns of Electricity Cash and Revenue (ECR) rolls but their
              designation as cashier had been mentioned on all these sheets
              and in some of the letters there were signatures of the Assistant
   _J..._     Engineer; in the contract given to M/s Vivek and Associates          F
              for operating Bradma machines it had been mentioned that it
              would be the responsibility of the contractor to operate these
              machines at all the 16 sub-stations but the cash was to be
              handled by the cashier of the appellant only but the appellant
              had failed to prove that any of its other cashiers' had handled      G
              the job of cash collection. It finally concluded that on the basis
              of the documents submitted by the workmen and for lack of
              proper rebuttal to these documents, there was no ground to


     '        presume that the workmen were the employees of the
              contractor and it stood proved that, in fact, they were in the       H
    858          SUPREME COURT REPORTS             [2008] 15 S.C.R.


A   regular employment of the appellant as cashiers. Thus, it was
    held that the workmen having worked for more than 240 days,
    th.eir termination without noti<?e and payment of compensation
    as contemplated under Section 6N of the Act, was illegal.

8      9. Being aggrieved, the appellant filed writ petitions under
  Article 226 of the Constitution, which have been dismissed by
  the impugned orders. The High Court has held that the Labour
  Court/Industrial Tribunal having considered all the aspects of the
  matter in the light of the evidence on record, no interference in
C exercise of power under Article 226 of the Constitution was
  called for. However, while dismissing the writ petition arising
  out of l.D. No.46 of 1997, the High Court modified the Award
  to the extent that the workman in that case would be entitled to
  50% of the back wages pursuant to the Award.

D         10. We have heard learned counsel for the parties.

        11. Learned counsel appearing for the appellant
  strenuously urged that both the adjudicatory authorities as well
  as the High Court committed grave error by acting on factually
E and legally erroneous premise. It was submitted that it was a
  clear and definite stand of the appellant before the courts below
  that the workmen were never employed by the appellant and
  they were the employees of the contractor working on the
  Bradma Machines installed by him for collection of the
F electricity bills from the consumers; there was no privity of
  contract between the appellant and the workmen and, therefore,
  the provisions of the Act were not attracted at all. Learned
  counsel contended that for determining the employer-employee
  relationship both the courts have failed to apply the test laid
  down by this Court in Ram Singh & Ors. Vs. Union Territory,
G Chandigarh & Ors. 1 It was also submitted that having observed
  that the workmen had neither produced the letters of
  appointment nor the salary slips, the courts below con:imitted
  a patent illegality in relying on the documents signed by the staff
H   1. (2004) 1 sec 126
                       KANPUR ELECTRICITY SUPPLY CO. LTD. v. SHAMIM             859
                                   MIRZA [D.K. JAiN, J.]
-<                of the appellant for internal use to return a finding that the       A
 '        ~
  ...             workmen were the regular employees of the appellant, which
                  had the effect of putting the onus on the employer to prove that
                  the workmen were not his employees. Reliance was placed on
                  Range Forest Officer Vs. S. T. Hadimant2 to support the plea
                  that it is for the claimant to prove that he had worked for a        B
                  particular management. Lastly, relying on Nagar Panchayat
                  Kharkhauda Vs. Yogendra Singh3, learned counsel submitted
         _,.\     that the courts below again erred in awarding back wages to
              ~   the workmen in routine.

                        12. Per contra, Mr. R. Venkataramani, learned senior           c
                   counsel appearing for Shamim Mirza, one of the workmen,
                  supporting the decision of the High Court, submitted that apart
                  from the fact that the evidence produced by the workman was
                  sufficient to prove that he was discharging his duties as cashier
                  and not as a Bradma Machine Operator, even the official              D
                  rec'ords show that he was working as an employee of the
         ..
        "f'
                  appellant. Referring to the application of the workman -
                  Shamim Mirza, before the Labour Court, inter alia, praying for
                  summoning of some documents from the appellant, including
                  ECR register, vouchers showing payment of salaries by the            E
                  appellant to him, learned senior counsel vehemently argued that
                  on appellant's failure to produce these documents, the
                  adjudicatory authority was justified in drawing adverse
                  inference against them. It was also urged that the service of the
        ....l     workman having been terminated much after the expiry of the          F
                  period of contract of Vivek and Associates, it stands
                  established that the workman was under the control of the
                  appellant and not the contractor. Relying on Bank of Baroda
                   Vs. Ghemarbhai Harjibhai Rabari4, learned counsel urged that
                  the workman having produced more than prima facie evidence,          G
                  no fault could be found with the findings of fact recorded by both

                        (2002) 3 sec 25.
         ,.r-     2.
                  3.    (2005) 13 sec 428.
                  4.    (2005) 1o sec 792.                                             H
                                                                                           I
    860         SUPREME COURT REPORTS             [2008] 15 S.C.R.

                                                                                     '1


A the courts below in favour of the workman, this Court should be      ,";"~
                                                                                     if
    loathe to interfere.

          13~ Mr. Praveen Chaturvedi, learned counsel appearing for
  the other workman - Manoj Srivastava, in order to buttress his
  argument that the respondent- was under the administrative
B control of the appellant, invited our attention to an office note
  dated 26th July, 1994 (Ex.34) issued by the Managing Director
  of the appellant to some of its cashiers, which included the           ,l
                                                                                     I
  name of the respondent, threatening action against them for not       ~

  depositing the cash amounts collected by them. He, thus,                           f'.
c contended that the document proves, beyond doubt, the
  employer-employee relationship between the appellant and
  respondent.

       14. Having considered the matter in the light of the material
D referred to and relied upon by the adjudicatory authority, in our
  judgment, the High Court was justified in declining to interfere       .   ...,.
  in both the matters.

        15. It is trite that the burden to prove that a claimant was
  in the employment of a particular management, primarily lies
E on the person who claims to be so but the degree of proof, so
  required, varies from case to case. It is neither feasible nor
  advisable to lay down an abstract rule to determine the
  employer-employee relationship. It is essentially a question of
  fact to be determined by having regard to the cumulative effect
F of the entire material placed before the adjudicatory forum by
  the claimant-and the management.

       16. It is true that in the instant case, the workmen did not
  produce the letters of appointment as also their salary slips but
G they have been successful in adducing some contemporaneous
  documentary evidence, including ECR sheets bearing the
  signatures of the workmen and that of another senior officer of
  the appellant company (Ex.W-7, W-10 to W-15), which shows            -(
  that they were collecting cash on behalf of the appellant;
  depositing it in the van or central office of the appellant and
H
                 KANPUR ELECTRICITY SUPPLY CO. LTD. v. SHAMIM                861
                             MIRZA [D.K. JAIN, J.]

       ....l   were answerable to the officials of the appellant. In this regard,   A
               Clause 5 of the terms and conditions of the contract awarded
               to Vivek and Associates is also relevant, which provides as
               under:

                    "You will be responsible for the operation of machines only.    B
                    The cash handling is to be done by K.E.S.A., Cashier or
                    a representative of K.E.S.A. duly authorised by Dy. C.A.O./
     --"'           Head Cashier."
       ~
                     17. It has come in evidence of the witnesses examined on
                behalf of the workmen that it was only the respondents who were     c
                collecting the cash and no other employee of the appellant. No
                evidence was led by the appellant in rebuttal. Furthermore, the
                appellant was called upon to produce the official records but
                they failed to do so, with the result the adjudicatory authority
                drew adverse inference against the appellant. In the light of the   D

-               factual scenario as emerging from the evidence on record, we
                are convinced that the workmen had discharged the burden
                which lay on them to prove the employer-employee relationship
               with the appellant. It is also pertinent to note that in both the
                cases, evidence on record shows the engagement of the               E
               workmen was prior to the award of contract to M/s Vivek and
               Associates for the period starting 1st July, 1995. Workman
               Shamim Mirza claims to have joined the appellant on 13th June,
                1995 while workman Manoj Srivastava claims to have joined
__.,l_
               on 17th June, 1994, which fact was not controverted by the           F
                appellant. On the contrary, this fact stands proved from Ex.34,
                an office note dated 26th July, 1994, containing the name of
                Manoj Srivastava as one of the defaulting cashiers. Workman
                Shamim Mirza has also placed on record a certificate dated
               9th September, 1996 issued by Assistant Engineer, sub-station
                                                                                    G
               Kalyanpur, certifying that he had worked at the cash collection
               office in the capacity of a cashier with effect from 13th June,
               1995 to 31st August, 1996 with honesty and hard labour. Other
 '
     >·        than this, he had also done good job on his directions at other
               places. The stan.d of the appellant on the said certificate was
                                                                                    H
    862         SUPREME COURT REPORTS              [2008] 15 S.C.R.


A that this Assistant Engineer was not competent to issue such
  a certificate. Be that as it may, the said document does show
  that the workman did work with the appellant even prior to the
  award of the contract to Vivek and Associates.

       18. Moreover, Shamim Mirza has also placed on record
8
  a copy of an office memorandum dated 5th May, 2007, issued
  by the appellant indicating that another cashier, namely, Kailash
  Verma, stated to be similarly situated and who had also
  obtained an award in his favour, the appellant had arrived into
C an agreement with him. The said person has been reinstated
  in service by the appellant on the post of a cashier in the pay
  scale of Rs.4200-100-6400 subject to his complying with certain
  terms and conditions imposed on him, which does prima facie
  show that the appellant has been adopting some sort of pick
  and choose policy.
D
       19. As regards the rulings of this Court relied upon by
  learned counsel for the appellant, in our view, these are of little
  assistance to the appellant. All these cases deal with the
                                                                         -
  question of regularisation of the services of workmen, in
E particular those who were engaged as daily wager or on
  contract or for specific period/fixed term, which is not the case
  here. It is manifest that the only dispute referred to the
  adjudicatory authority was in regard to the termination of the
  services of the workmen without following the procedure laid
F down in the Act.
       20. In the light of the aforenoted factual matrix and the
  evidence on record, we are of the opinion that the courts below
  were justified in holding that both the workmen have
  established their claim of having worked with the appellant for
G more than 240 days as their employees. We find no reason
  whatsoever to interfere with the impugned judgments to that
  extent.
                                                                        -{.,
      2·1. The next question for determination is whether the
H respondents are entitled to the back-wages for the period they
           KANPUR ELECTRICITY SUPPLY CO. LTD. v. SHAMIM              863
                       MIRZA [D.K. JAIN, J.]

      were out of service?                                                  A
 \
           22. It is true that once the order of termination of service
      of an employee is set aside, ordinarily the relief of reinstatement
      is available to him. However, the entitlement of an employee
      to get reinstated does not necessarily resultin payment of full
                                                                            B
      or partial back-wages, which is independent of reinstatement.
      While dealing with the prayer of back-wages, factual scenario,
-"'   equity and good conscience and a number of other factors, like
      the manner of selection; nature of appointment; the period for
 '    which the employee has worked with the employer etc.; have
                                                                            c
      to be kept in view. All these factors are illustrative and no
      precise formula can be laid down as to under what
      circumstances full or partial back-wages should be awarded.
      It depends upon the facts and circumstances of each case.

            23. In General Manager, Haryana Roadways Vs. Rudhan             D
      Singh 5 a three-Judge Bench of this Court has observed that
r     there cannot be a strait jacket formula for awarding relief of
      back-wages and an order of back-wages should not be passed
      in a mechanical manner. It has been held that a host of factors,
      like the manner and method of selection and appointment; the          E
      nature of appointment, namely, whether ad hoc, short term, daily
      wage, temporary or permanent in character; and the length of
      service, which the workman had rendered with the employer are
      required to be taken into consideration before passing any
      order for award of back-wages. [See: also Haryana State               F
      Electronics Development Corpn. Ltd. Vs. Mamni6; U.P. State
      Brassware Corpn~ Ltd. & Anr. Vs. Uday Narain Pandey7 and
      UP. SRTC Vs. Mitthu Singh 6 ]

           24. Bearing in mind the afore-noted broad parameters, we
      are of the opinion that the facts at hand do not warrant payment      G

      5.    (2005) s sec 591.
      6.    (2006) 1 sec 479.
      7.    (2006) 7 sec 180.
      8.    (2006) 7 sec 180.                                               H
     864       SUPREME COURT REPORTS             [2008] 15 S.C.R.


 A of back-wages to the respondents. In both the cases, though
   the respondents have succeeded in establishing that they were
   in the employment dfthe appellant when their services were
   terminated but nothing has been brought on record to show that
   they were selected through a regular recruitment process. It has
=s aiso not been shown whether they were actually qualified for
   the post of a cashier: Besides, on their own showing they had
   worked with the appellant for about two years when their
   services were terminated. These circumstances, in our view,        )
   disentitle them from their claim for back wages. Accordingly,
C the orders of the High Court to the extent they affirm the
   directions of the adjudicatory authority with regard to the
   payment of back wages are set aside.

         25. Consequently, for the aforesaid reasons, both the
    appeals are allowed to the extent indicated above. However,
· D in the circumstances, there will be no order as to costs.

     N.J ...                              Appeals partly allowed.




                                                                      j


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