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Supreme Court of India

U.P. STATE SUGAR CORPORATION LTD. NOW M/S.DOWIALA SUGAR COMPANY LTD. DOIWALA THROUGH ITS EXECUTIVE DIRECTORversusNIRAJ KUMAR AND ORS.

Citation
2009 INSC 995
Decided
31 July 2009
Disposal
Appeal(s) allowed

Holding

Daily‑rated employees engaged for temporary workload during a season are not automatically seasonal workmen, and the workman did not satisfy the criteria for re‑employment as a seasonal workman.

Summary

The Uttar Pradesh State Sugar Corporation, a seasonal sugar unit, engaged Niraj Kumar as a weighment clerk on a daily‑wage basis from 1 January 1997 to 15 April 1997, i.e., during the middle of the 1996‑97 crushing season. Kumar claimed that he was a seasonal workman and that the corporation’s failure to re‑engage him for the 1997‑98 season amounted to illegal termination. The Labour Court held him to be a seasonal workman, directing re‑engagement and awarding compensation; the High Court modified this, ordering the corporation to engage him in every crushing season. The Supreme Court examined whether Kumar qualified as a seasonal workman under the corporation’s Standing Orders, which require a workman to have worked the whole second half of the preceding season or the full previous season. It held that daily‑rated employees engaged for temporary workload do not automatically become seasonal workmen and that Kumar had not satisfied the statutory criteria. Consequently, the Court set aside the High Court’s order and the Labour Court award, allowing the appeals. The parties each bore their own costs.

Issues considered

  • Whether the workman was a seasonal workman or a temporary workman under the Standing Orders.
  • Whether the workman was entitled to re‑employment in the succeeding crushing season.

Subjects

seasonal workmantemporary workmanindustrial disputere‑employmentstanding orderssugar industrylabour lawillegal termination

Judgment

                      [2009) 11 S.C.R. 898


A    U.P. STATE SUGAR CORPORATION LTD. NOW MIS.
    DOWIALA SUGAR COMPANY LTD. DOIWALA THROUGH
                ITS EXECUTIVE DIRECTOR
                               v.
                    NIRAJ KUMAR AND ORS.
B                (Civil Appeal No. 3002 of 2007)

                         JULY 31, 2009

        [TARUN CHATTERJEE AND R.M. LODHA, JJ.]

C      Labour Laws - Workman, temporary or seasonal -
  Determination of - Workman engaged as weighment clerk in
  mid of the crushing season but not in the next crushing
  season though presented himself - Industrial dispute,          ...
  challenging illegal termination - Order of courts below that
D workman was seasonal workman - Direction by High Court
  to engage workman in every crushing reason - Sustainability
  of - Held: Not sustainable - Daily rated employees engaged
  during the season by Corporation do not automatically
  become seasonal workmen - If employee is engaged for work
E of temporary or casual nature, his engagement would be that
  of temporary workman - Workman did not discharge his                 ._
  burden that he was engaged as 'seasonal workman' - He
  neither worked in the previous full crushing season nor
  remained in employment during the whole of the second half
F of the crushing season for holding lien in the succeeding
  crushing season - Mere working during part of the previous
  crushing season does not make him entitled for re-
  employment in the succeeding season - Order of High Court
  set aside.
G       Appellant Corporation is a seasonal sugar unit. It
    engaged respondent no. 1-workman as weighment
    clerks on temporary/daily wage basis in mid of the
    crushing season and thereafter, his engagement ceased.
    He was not engaged ior the next crushing season
H                             898
                      UP STATE SUGAR CORPN. NOW DOWIALA SUGAR CO. LTD. 899
                          DOIWALA THR. ITS EX. DIR v. NIRAJ KUMAR
        )
                      though he presented himself. Respondent raised an             A
                      industrial dispute that his services were illegally
                      terminated. Labour court held that the respondent was a
!,  '                 seasonal workman. It directed the appellant to engage the
                      workman in the next season and awarded compensation.
                      High Court modified the award by directing the appellant      B
                      to engage the respondent in every crushing season.
                      Hence the present appeal.
i
        "                 Allowing the appeals, the Court

                           HELD: 1.1. It is not that the daily rated employees      c
                      engaged during the season by the Corporation
                      automatically become seasonal workmen. If an employee
                      is engaged for work of a temporary or casual nature like
                      additional workload during a season, his engagement
                      would be that of a temporary workman. The burden lay          D
            ;.        on the workman to establish that he was engaged as
                      'seasonal workman'. There is no material from which it
                      can be held that the workman had discharged his burden.
                      High Court brushed a.side the objection raised by the
                      Corporation that respondenf no.1 was engaged on               E
                      temporary basis by observing that the petitioner has not
                      been able to show any perversity in the finding recorded
                      by the labour court. The finding recorded by the labour
                      court that the respondent no. 1 was engaged as a
                      seasonal workman, is based on no legal evidence and           F
                      High Court was not justified in affirming the said finding.
                      [Para 15] [905-8-E]

                          1.2. Even if it is assumed that the respondent no. 1
    .
    '
                      was engaged as a seasonal workman, it is pertinent to
                      notice that before the labour court, it was an admitted       G
                      position that the crushing season 1996-97 commenced
                 .i
                      from November 11, 1996 and came to an end on May 3,
                      1997. The workman was engaged on January 1,1997 and
                      worked upto April 15, 1997. These admitted facts would
                      amply show that the workman had neither worked in the         H
    900        SUPREME COURT REPORTS          [2009] 11 S.C.R.


A previous full crushing season nor he remained in
  employment during the whole of the second half of the
  crushing season 1996-9~. The Standing Orders
  contemplate lien of a seasonal workman in the
  succeeding crushing season if he has worked in the
B previous full crushing season or in the whole second half
  of that crushing season. It is true that 'second half of the
  crushing season' is not defined in the Standing Orders
  but in absence thereof an ordinary meaning of the
  expression "second half of the crushing season" has to
C be given and that would mean the crushing season be
  divided into two parts and later part of the crushing
  season would be second half of the season. [Para 16)
  [905-F-H; 906-A-B]

       1.3. To be entitled for re-employment in the
D succeeding crushing season, a seasonal workman has
  to show that he worked in the previous full crushing               ,
  season or in whole of the second half of the last
  preceding year. Merely because workman has worked
  during the part of the previous crushing season, he does
E not become entitled for re-employment in the succeeding
  season. In view of the admitted facts, it is concluded that
  workmen have no right to be re-employed in the
  succeeding crushing season. High Court was not right
  in directing the Corporation to engage the workman in
F every crushing season as and when the purchase
  centres are opened at mill or at any other place based on
  that judgment. The judgment of the High Court and the
  award impugned in the appeals are set aside. [Paras 17,
  18 and 19) [906-B-G]
G
        Marinda Cooperative Sugar Mills Limited vs. Ram
    Kishan JT 1995 (6) SC 547, Distinguished.
                                                                 \

                        Case Law Reference:
          JT 1995 (6) SC 547      Distinguished.     Para 8
H
             U.P. STATE SUGAR CORPN. NOW DOWIALA SUGAR CO. LTD. 901
                   DOIWALA THR. ITS EX. DIR. v. NIRAJ KUMAR

                 CIVIL APPELLATE JURISDICTION : Civil Appeal No.                A
             3002 of 2007.

                  From the Judgment & Order dated 22.7.2005 of the High
             Court of Uttaranchal at Nainital in Writ Petition No. 1337/(M/S)
             of 2001 (Old No. 48853 of 2000).
                                                                                B
                                          WITH

             C. A Nos. 4697 of 2006.

             C. A. No 3189, 3190, 3191, 3192 of 2007.                           c
                  Vinay Garg, Deepam Garg for the Appellants.


-                L.D. Joshi, Anagha S. Desai, Venkateswara Rao Anumolu,
             M.K. Michael (N.P.) for the Respondents.

                  The Judgment of the Court was delivered by
                                                                                D

                  R.M. LODHA, J. 1. This group of six appeals by special
             leave involving identical issues was heard together and is being
             disposed of by a common judgment.
                                                                                E
                 2. In Civil Appeal No. 3002/2007, both the parties are
             represented by their counsel and, therefore, we deem it
             appropriate to take up the facts from this appeal.

                  3. The appellants, U.P .. State $ugar.CorporaJion Limited, F
    '        (for short, "Corporation"), is engaged in mcifrii.itacture of white
             crystal sugar by vaccum process. The sugar Unit is a seasonal
             Unit which functions for a period of about 5 months in a year
             depending upon the allocation of sugar cane to the concerned
             Unit by the Cane Commissioner, U.P .. During the crushing
             season 1996-1997, the appellant engaged Niraj Kumar, the G
             respondent no. 1 (for short, "workman"), purely on temporary/
        .1   daily wages basis; According to the Corporation, the workman
             was engaged as weighment Clerk as an additional hand in the
             mid of the crushing season 1996-97 Le. from January 1, 1997;
             the workman worked upto April 15, 1997 and on and after that H
    902       SUPREME COURT REPORTS              [2009] 11 S.C.R.


A date, his engagement ceased.

       4. The workman raised an industrial dispute alleging that
  by not engaging him in the next crushing season viz., 1997-98,
  although he presented himself, his services were illegally
  terminated. He set up the case that he had worked with the
8
  Corporation during the crushing season 1996-97 from January
  1, 1997 for full second part and was, accordingly, entitled to
  be engaged in next crushing season and although he presented
  himself, he was not given any work and, thus, under the                     y
C Standing Orders his services are deemed to have been illegally
  terminated.



                                                                                  -
       5. The Corporation contested the claim of the workman and
  set up the case that during the crushing season, the work load
  in sugar Unit increases manifold which at times necessitates
D engagement of additional hands on daily wages to cater to the
  additional workload. During the crushing season 1996-97,
  sugarcane purchase centres were allotted by the Cane
  Commissioner which created additional workload and for that
  additional hands were engaged on daily wages at various
E centres. The workman was one of such additional hands. He
  was engaged on January 1, 1997 and worked as such only upto
  April 15, 1997 whereafter the additional workload for which he
  was engaged, came to an end and, therefore, his engagement
                                                                                  -
  automatically ceased w.e.f. April 15, 1997. The Corporation
F also stated that the duration of crushing season 1996-97 was
  from November 19, 1996 until May, 1997. The Corporation                 '
  denied that there was any illegal termination of services of the
  workman.

       6. Both the parties led oral as well as documentary
G evidence in respect of their respective case. The Presiding
  Officer, Labour Court, U.P. , Dehradun, after hearing the parties
  passed the award on April 17, 2000 holding that by not              "
  engaging the workman in the crushing season 1997-98 which
  was to start on November 1997, the Corporation can be said
  to have terminated the services of the workman illegally. The
                                                                 I
                                                                 I
              U.P. STATE SUGAR CORPN. NOW DOWIALA SUGAR CO. LTD. 903
              DOIWALA THR. ITS EX. DIR. v. NIRAJ KUMAR [R.M. LODHA, J.]

    )        Labour Court directed the Corporation to engage the workman        A
             in the next season and also awarded compensation of Rs.
             10,000/- to him.

                  7. The Corporation challenged the award before the High
             Court of Uttranchal at Nainital. The principal ground taken by
                                                                                B
             the Corporation before the High Court was, as was the case
             before the Labour Court, that the workman was a temporary
             workman as classified under the Standing Orders and,
             therefore, the direction of the Labour Court was not justified.
             The workman defended the award before the Hi~h Court.
                                                                                c
                   8. The High Court held that there was noiperversity in the
                                                           I '
             finding recorded by the Labour Court that the wor,kman was a
             seasonal workman. However, taking note of a decision of this
             Court in Marinda Cooperative Sugar Mills Limited vs. Ram
             Kishan 1, the High Court modified the award by directing the D
             Corporation to engage the workman in every crushing season
             when the purchase centres are opened at mill or at any other
             place.

                  9. The Standing Orders incorporating the conditions of
                                                                                E
-            emp1oyment of workmen in Vaccum Pan Sugar Factories in
             U.P. define 'Season' thus:

                         "Season" means the period commencing from the
                   date when the crushing commences till the date when
                   crushing ends. Provided that for these departments which     F
                   are not in operation when crushing begins and which
                   continue in operation after crushing ends, the "season" so
                   far as it affects the workmen in those departments, shall
                   commence with the date the department commences
                   operation and shall end when the department ceases to        G
                   be operated."
        -4       10. Workmen, in the Standing Orders, are classified in six
             categories viz. ; (i) Permanent, (ii) Seasonal, (iii) Temporary,
             1.   Jt. 1995 (6) SC 574.                                          H
    904         SUPREME COURT REPORtS                 [2009] 11 S.C.R.


A   (iv) Probationers, (v) Apprentices, and (vi) Substitutes.

          11. A seasonal workman is:

          "One who is engaged only for the crushing season:

B         Provided that if he is a retainer, he shall be liable to be
          called on duty at any time in the off-season and if he
          refuses to join or does not join, he shall lose his lien as
          well as his retaining allowance. However, if he submits a
          satisfactory explanation of his not joining duty, he shall only
c         loss his retaining allowance for the period of his absence."

         12. Under the Standing Orders, a temporary workman is
    one who is engaged for a work of temporary or casual nature
    or to fill in a temporary need of extra hands on permanent,
    seasonal or temporary posts.
0
         13. It is pertinent to notice that for a temporary workman,
    Standing Orders do not provide for any lien of employment in
    the succeeding season based on the employment in the last
    preceding season. As regards, seasonal workmen, there are
E   special conditions. Clause K(1) of the Standing Orders is
    relevant for this purpose which reads· thus:

          " K. Special conditions governing employment of
                                                                                 -
          seasonal workmen-
F                1. A seasonal workman who has worked or, but for
                                                                            ..
          illness or any other unavoidable cause, would have worked
          under a factory during the whole of the second half of the
          last preceding season will be employed by the factory in
          the current season.
G
          Explanation - Unauthorised absence during the second
          half of the last preceding season of a workman has not
          been validly dismissed under these Standing Orders and
          of a workman who has been re-employed by the
H         m_anagement in the current season, shall be deemed to
 U.P. STATE SUGAR CORPN. NOW DOWIALA SUGAR CO. LTD. 905
 DOIWALA THR. ITS EX. DIR. v. NIRAJ KUMAR [R.M. LODHA, J.]

      have been condoned by the management." .                          A
       14. The questjon 'that falls for our consider2tion is: whether
 in the facts noticed above, the workman was engaged as a
 temporary workman or seasonal workman and whether he is
 entitled to be re-employed ·in the succeeding year?
                                                                        B
        15. It Is not that the daily rated employees engaged during
  the season by the Corporation automatically become seasonal
  workmen. lfan employee is engaged for work of a temporary
  or casual n.atu_re like additional workload during a season, his
  engagement would be that of a temporary workman. Having               c
  perused the award of the Labour, Court carefully, we find it
  difficult to fathom on what basis the-Labour Court recorded the
  finding that the first respondent was engaged as seasonal
  workman . The burden lay on the workman to establish that he
  was engaged as 'seasonal workman'. There is no material from
                                                                        0
  which it can be held that the workman has discharged his
  burden. The High Court brushed aside the objection raised by
  the Corporation that respondent no.1 was engaged on
  temporary basis in one line by'obseNing that the counsel of the
  petitioner has not been able to show any peNersity in the finding
                                                                        E
• recorded by the Labour Court. In our view, the finding recorded
  by the Labour Court that the respondent No. 1 was engaged
  as a seasonal workman, is based on no ·legal evidence and
  High Court was not justified in affirming the said finding .
      16. Even if we assume that the respondent no. 1 was               F
 engaged as a seasonal workman, it is pertinent to notice that
 before the Labour Court, it was an admitted position that the
 crushing season 1996-97 commenced from November 11 ,
 1996. That the season came to an end on May 3, 1997 was
 not disputed. It was also an admitted position before the Labour       G
 Court that the workman was engaged on January 1, 1997 and
 worked upto April 15, 1997. These admitted facts would amply
 show that the workman had neither worked in the previous full
 crushing season nor he remained in employment during the
 whole of the second half of the crushing season 1996-97. The           H
    906       SUPREME COURT REPORTS              [2009] 11 S.C.R.


A Standing Orders contemplate lien of a seasonal workman in
  the succeeding crushing season if he has worked in the
  previous full crushing season or in the whole second half of that
  crushing season. It is true that 'second half of the crushing
  season'~is not defined in the Standing Orders but in absence
B thereof an ordinary meaning of the expression "second half of
  the crushing season" has to be given and that would mean the
  crushing ·.season be divided into two parts and later part of the
  crushing season would be second half of the season.
       17. To be entitled for reemployment in the succeeding
C crushing season, a seasonal workman has to show that he
  worked in the previous full crushing season or in whole of the
  second half of the last preceding year. Merely because·
  workman has worked during the part of the previous crushing
  season, he does not become entitled for re-employment in the
D succeeding season. If a claim of re-employment is based on
  engagement in the second half of season, such engagement
  has to be for full second half of the season i.e. until the end of
  that season. In view of the admitted facts that have come on
  record and legal position discussed above, the conclusion is
E inescapable that workmen in these appeals have no right to be
  re-employed in the succeeding crushing season. We ·are,
  therefore, unable to uphold the decision of the High Court.
       18. Before we part with the judgment, we may observe that
  the decision of this Court in Marinda CooperaNve Sugar Mills
F Limited1 referred to by the High Court in its judgment has no
  application to the present fact situation and the High Court was
  not right in directing the Corporation to engage the workman
  in every crushing season as and when the purchase centres
  are opened at mill or at any other place based on that judgment.
G
       19. As a result of foregoing discussion, these appeals have
  to be allowed and are allowed. The judgment of the High Court
  and the award impugned in the present appeals are set aside.
  Ttie parties will bear their own costs.
H N.J.                                          Appeals allowed.


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