SURENDRA KUMAR SHARMAversusVIKAS ADHIKARI AND ANR.

A                       SURENDRA KUMAR SHARMA
                                   v.
                        VIKAS ADHIKARI AND ANR.

                                  MAY 9, 2003

B                  (R.C. LAHOTI AND B.N. AGRA WAL, JJ.]


         labour law:

         Industrial Disputes Act, 1947-Sections 2(oo) and 25F-Retrenchment-
C Temporary employment under Jawahar Ro:::gar Yojna extended from time to
    time-Employment came to an end after completion of 240 days-Abolition of
    post and termination of service-Termination upheld by Single Judge and
    Division Bench of High Court-On appeal, held:the termination does not
    amount to retrenchment-The employee knew that his employment was co-
D   terminus with the scheme and that the post itself was abolished-Moreover he
    was not in the employment of Panchayat Samiti-Hence not entitled to any
    relief including reinstatement.

           Appellant was employed temporarily 011 daily wages for 100 days
    under a Scheme. The Scheme was merged with another Scheme known
E   as Jawahar Rozgar Vojna. On the expiry of the 100 days, instead of
    rendering the appellant jobless, he was given yet another temporary
    employment. This employment was extended from time to time. As such
    his employment came to an end after he completed 240 days. He initiated
    proceedings against Vikas Adhikari Panchayat Samiti alleging himself to
F   be in employment of Panchayat Samiti. On his filing writ petition, High
    Court by interim order protected his employment. However, the post was
    abolished and consequently his services came to be terminated. Single
    Judge of High Court dismissed the writ petition holding that as the posts
    themselves have been abolished, the question of regularization did not
    arise; that the employment under the Scheme was on adhoc basis and of
G   temporary nature co-terminus with the Scheme itself, appellant could not
    be said to have been retrenched within the meaning of Section 2(oo) of
    •he Industrial Disputes Act, 1947 so as to be entitled to the relief of
    reinstatement if the provisions of Section 25(F) of the Act were not
    complied with. High Court also found that appellant was not in the
    employment of Panchayat Samiti. Writ appeal against the order of Single
H                                      168
                   S.K. SHARMA v. VIKAS ADHIKARI                     169

Judge \Yas dismissed by Division Bench of High Court.                        A
      In appeal to this Court appellant contended that without regard to
the nature of employment, once a workman has worked in continuous
employment for a period of 240 days, his employment could not have been
terminated except by complying with the provisions of Section 25 F, hence
he would be deemed to have been retrenched and entitled to the relief of     B
reinstatement.

     Dismissing the appeal, the Court

      HELD: I. Appellant is not entitled to any relief and the view taken
by High Court cannot be found fault with. Appellant was a daily wager        C
in a Scheme and knew it well that his employment was co-terminus with
the Scheme. The post against which the appellant worked has been
abolished for want of funds and has ceased to exist. [173-H; 174-A, BJ

      Delhi Development Horticulture Employees' Union v. Delhi
Administration, Delhi and Ors., [1992) 4 SCC 99; SM Nilajkar and Ors. v.     D
Telecom, District Manager, Karnataka., JT 2003 3 SC 436; Rajendra and
Ors. v. State of Rajasthan and Ors., (1999) 2 SCC 317 and Jaipal and Ors.
v. State of Haryana, (1988) 3 SCC 354, relied on.

       2. There is yet another reason why the appellant cannot be allowed    E
any relief. The appellant had initiated proceedings against Vikas Adhikari
Panchayat Samiti alleging himself to be in the employment of Panchayat
Samiti. High Court has found, upon scrutiny of several documents
produced for its consideration and the evidence adduced before the Labour
Court that the appellant was not in the emplcyment of Panchayat Samiti
at all. What was done was that a panel was prepared by the Collector of      F
the District enrolling the unemployed and out of that panel the appellant
was taken for work on daily wages for the purpose of the Scheme.
Panchayat Samiti was not the employer of the appellant.
                                                         [173-F, G; 174-AJ

     CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5108 of2000.             G
     From the Judgment and Order dated 10.12.1999 of the Rajasthan High
Court in D.B.C.S.A. No. 1488 of 1999.

     G.L. Sanghi, Ajay Choudhary and Punit D.Tyagi for the Appellant.
                                                                             H
    170                       SUPREME COURT REPORTS [2003 f SUPP. I S.C.R.

A         V.N. Raghupathy for the Respondents.

          The Judgment of the Court was delivered by

         R.C. LAHOTI, J. The appellant was employed as a Junior Engineer
  on daily wages for a period of 100 days vide order dated 22.9.1988 in a
B scheme known as Rural Employment Programme. There were two similar
  employment welfare schemes operating, known as - Rural Employment
  Programme (REP) and Rural Landless Employment Guarantee Programme
  (RLEGP). The two schemes were merged into one elaborate scheme known
  as Jawaharlal Nehru Rozgar Vojna or Jawahar Rozgar Vojna. On completion
  of 100 days, his employment would have terminated automatically; however,
C the authority passed a specific order of termination dated 29.12.1988. Instead
  of being rendered jobless the appellant was offered yet another temporary
  employment in a scheme known as Jeevan Ohara vide order dated 17 .1.1989.
  The employment was extended from time to time upto 12.6.1989. The last
  order of appointment was for a period of 7 days issued on 24.6. I 989 which
D came to an end on 30.6.1989. The appellant, and a few others similarly
  employed filed writ petitions in the High Court, which by an interim order
  protected their employment. However, the posts came to be abolished and the
  appellant's employment as also the employment of other similarly situated
  persons came to be terminated with effect from 7.5.1991, consequent upon
  the posts having been abolished. The writ petitions were dismissed by the
E High Court holding that as the posts themselves have been abolished the
  question of regularization did not arise. The High Court also held that the
  workmen given employment under the schemes got the employment on an ad
  hoc basis, and from the very beginning knew that the employment was of a
  temporary nature co-terminus with the scheme itself, and therefore they could
p not be said to have been retrenched within the meaning of Section 2 (00)
  of the Industrial Disputes Act, 1947, so as to be entitled to the relief of
  ;einstatement if the provisions of Section 25F of the Act were not complied
  with. The appellant filed a writ appeal which has also been dismissed by the
  Division Bench of the High Court. This is an appeal by special leave.

G        Shri Sanghi, the learned senior counsel for the appellant, submitted that
  without regard to the nature of employment, once a workman has worked in
  continuous employment for a period of 240 days his employment could not
  have been terminated except by complying with the provisions of Section
  25F; else he would be deemed to have been retrenched and entitled to the
H relief of reinstatement. Having heard the learned counsel for the parties we
             S.K. SHARMA v. VIKAS ADHIKARI [LAHOTI, J.]                   171

are satisfied that the appellant is not entitled to any relief and the view taken A
by the High Court cannot be found fault with.

      The nature of employment under Jawaharlal Nehru Rozgar Yojna came
to be examined by this Court in Delhi Development Horticulture Employees"
Union v. Delhi Administration, Delhi and Ors., [ 1992] 4 SCC 99. The Court
found that the scheme under which the petitioners therein were employed B
was evolved to provide income for those who are below the poverty line and
particularly during the periods when they are without aio:• st ~~ce of livelihood
and therefore without any income whatsoever. Such schemes were further
meant for the rural poor, for the object of the scheme wa~; to start tackling
the problem of poverty from that end. The object was not to provide the right C
to work as such even to the rural poor - much less to the employed in general.
 The Union of India had filed a detailed affidavit showing the purpose and
 working of such schemes, which in their very nature could provide some
 employment to some people for some time and not an employment to all the
 employed for all times. The Court held, "if the resources used for the Jawahar
 Rozgar Yojna were in their entirety to be used for providing full employment D
throughout the year, they would have given employment only to a small
percentage of the population in need of income, the remaining vast majority
being left with no income whatsoever. No fault could, therefore, be found
with the limited object of the scheme given the limited resources at the
disposal of the State. Those employed under the scheme, therefore, could not E
ask for more than what the scheme intended to give them. To get an
employment under such scheme and to claim on the basis of the said
employment, a right to regularization, is to frustrate the scheme itself. No
Court can be a party to such exercise. It is wrong to approach the problems
of those employed under such schemes with a view to providing them with
full employment and guaranteeing equal pay for equal work. These concepts, F
in the context of such schemes, are both unwarranted and misplaced. They
will do more harm than good by depriving the many of the little income that
they may get to keep them from starvation. They would benefit a few at the
cost of the many starving poor for whom the schemes are meant. That would
also force the State to wind up the existing schemes and forbid them from G
introducing the new ones, for want of resources. This is not to say that the
problems of the unemployed deserve no consideration or sympathy. This is
only to emphasise that even among the unemployed a distinction exists between
those who live below and above the poverty line, those in need of partial and
those in need of full employment, the educated and uneducated, the rural and
urban unemployed etc." The Court emphasized how a judicial sympathy with H
    172                      SUPREME COURT REPORTS 12003] SUPP. I S.C.R.

A such workmen could boomerang upon the purpose of the scheme itself and
    thereby in the larger context, deny the limited benefit extended by the State
    to the unemployed which would not be available but for such schemes. The
    Court held that the petitioners cannot be directed to be regularized on the
    only ground that they have put in work for 240 or more days, as such
B   directions lead to pernicious consequences. Although there is the Employment
    Exchange Act which requires recruitment on the basis of registration in the
    Employment Exchange, it has become a common practice to ignore the
    Employment Exchange and the persons registered in the Employment
    Exchanges, and to employ and get employed directly those who are either not
    registered with the Employment Exchange or who though registered are lower
C   in the long waiting list in the Employment Register. The Courts can take
    judicial notice of the fact that such employment is sought and given directly
    for various illegal considerations including money. The employment is given
    first for temporary periods with technical breaks to circumvent the relevant
    rules, and is continued for 240 or more days with a view to give the benefit
    of regularization knowing the judicial trend that those who have completed
D   240 or more days are directed to he automatically regularized. A good deal
    of illegal employment market has developed, resulting in a new source of
    corruption and frustration of those who are waiting at the Employment
    Exchanges for years. Not all those who gain such back-door entry in the
    employment are in need of the particular jobs. Though already employed
E   elsewhere, they join the jobs for better and secured prospects. That is why
    most of the cases which come to the courts are of employment in Government
    Departments, Public Undertakings or Agencies. Ultimately it is the people
    who bear the heavy burden of the surplus lahour. The other equally injurious
    effect of indiscriminate regularization has been that many of the agencies
    have stopped undertaking casual or temporary works though they are urgent
F   and essential for fear that if those who are employed on such works are
    require~ to be continued for 240 or more days have to be absorbed as regular
    employees although the works are time-bound and there is no need of the
    workmen beyond the completion of the works undertaken. The public interests
    are thus jeopardized on both counts."
G         Recently, dealing with such scheme or project employees in S.M.
    Nilajkar and Ors. v. Telecom, District Manager, Karnataka, JT (2003) 3 SC
    436 this Court observed - "It is common knowledge that the Government as
    a welfare State floats several schemes and projects generating employment
    opportunities, though they are short-lived. The objective is to meet the need
H   of the moment. The benefit of such schemes and projects is that for the
             S.K. SHARMA v. VIKAS ADlllKARI !LAHOTI . .I.)               173
duration they exist, they provide employment and livelihood to such pc:rsons A
as would not have been able to secure the same but for such schemes or
projects. If the workmen empioyed for fulfilling the need of such passing-
phase-projects or schemes were to become a liability on the employer-State
by too liberally interpreting the labour laws in favour of the workmen, then
the same may well act as a disincentive to the State for floating such schemes B
and the State may opt to keep away from initiating such schemes and projects
even in times of dire need, because it may feel that by opening the gates of
welfare it would be letting-in onerous obligations entailed upon it by extended
application of the labour laws."

      A matter as to tennination of employment caused by abolition of posts      C
consequent upon the schemes having been abolished for non-availability of
funds came up for the consideration of this Court in Rajendra and Ors. v.
State of Rajasthan and Ors., [ 1999] 2 SCC 317. It was held that when posts
temporarily created for fulfilling the needs of a particular project or scheme
limited in its duration come to an end because the need for the project comes
to an end either because the need was fulfilled or the project had to be         D
abandoned wholly or partially for want of funds, the employer cannot by a
writ of mandamus be directed to continue employing such employees as have
been dislodged, because such a direction would amount to requisition for
creation of posts though not required by the employer and funding such posts
though the employer did not have funds available for the purpose.
                                                                                 E
      In Jaipal and Ors. v. State of Ha1yana, [1988] 3 SCC 354, the employees
of the project of adult and non-formal education, a temporary project which
was time bound to last till 1990, were held not entitled for regularizing of
their services.
                                                                                 F
       There is yet another reason why the appeliant cannot be allowed any
relief. The appellant had initiated proceedings against Vikas Adhikari
Panchayat Samiti alleging himself to be in the employment of Panchayat
Samiti. What the High Court has found, upon scrutiny of several documents
produced for its consideration and the evidence adduced before the Labour
Court, is that the appellant was not in the employment of Panchayat Samiti       G
at all. What was done was that a panel was prepared by the Collector of the
District enrolling the unemployed and out of that panel the appellant was
taken for work on daily wages for the purpose of the scheme.

      The appellant was a daily wager in a scheme and knew it well that his
                                                                                 H
    174                     SUPREME COURT REPORTS [2003] SUPP. I S.C.R.

A employment was co-terminus with the scheme. The post against which the
    appellant worked has been abolished for want of funds and has ceased to
    exist. As held above the Panchayat Samiti was not even an employer of the
    appellant.

           The learned Single Judge rightly set aside the award of the Labour
B   Court. The Division Bench has not erred in upholding the decision of the
    learned Single Judge. The appeal is devoid of any merit and liable to be
    dismissed. It is dismissed accordingly though without any order as to the
    costs.

    K.K.T.                                                 Appeal dismissed.