The Court has addressed cross appeals involving the Tamil Nadu Medical Services Corporation Limited (TNMSC) and its employees' union regarding the applicability of the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981. The High Court had previously affirmed that the Act applied to the Corporation, leading to an order to regularize 53 workmen. The Supreme Court upheld this judgment, dismissing the Corporation's appeal and confirming that the workmen were entitled to permanent status under the Act.

Impugned Judgment

The High Court had directed the TNMSC to confer permanent status on 53 workmen, while rejecting the claim of 42 others.

Questions Before the Court

Two main questions:

• • Applicability of the Tamil Nadu Industrial Establishments Act, 1981 to TNMSC.
  • Sustainability of the suggestion to institute an 'Industrial Disputes Claim'.

Facts in Brief

TNMSC was incorporated in 1994 under the Indian Companies Act, 1956, and managed by the State of Tamil Nadu. Employees sought regularization under the Tamil Nadu Act.

Directions of Learned Single Judge

The Single Judge's directions included:

• • Application of the Act to TNMSC.
  • Inspection and verification by the Labour Inspector.
  • Consideration of employment claims on Saturdays.

Inspector of Labour’s Order

The Inspector of Labour granted permanent status to 53 workmen.

Appeals and Proceedings

The High Court confirmed the Inspector's order, which led to civil appeals.

Supreme Court’s Remand

The Supreme Court, on 10th March 2016, remanded the matter to the High Court for reconsideration.

Impugned Judgment of High Court

The High Court reaffirmed the applicability of the Act to TNMSC and directed the provision of permanent employment to the workmen.

Submissions of the Parties

Arguments by TNMSC included non-applicability of the Act and other employment of workmen.

The Union argued exploitation of temporary employees and supported the Inspector’s order for permanent status.

Analysis and Consideration

Examination of relevant provisions and activities of TNMSC leading to the conclusion that TNMSC is an industrial establishment under the Act.

Final Judgment

The appeal by TNMSC is dismissed, and the Union's appeal is allowed, confirming permanent status for the workmen.

Pending Applications

Pending applications, if any, shall stand disposed of.