Supreme Court Upholds Permanent Status of Daily Wage Employee in Madhya Pradesh Industrial Relations Act Case — Concurrent Findings of Fact Not Interfered With. The Court held that a temporary employee who worked continuously for more than six months on a vacant post is deemed permanent under the exception to Standing Order 2(vi) of the Madhya Pradesh Industrial Employment (Standing Orders) Rules, 1963.

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Case Note & Summary

The State of Madhya Pradesh appealed against the order of the Division Bench of the High Court of Madhya Pradesh at Gwalior, which had upheld the Labour Court's award granting permanent status to the respondent, Kumari Arati Saxena. The respondent was appointed on 05.06.1992 as a daily wage Hindi Typist. She filed an application under Sections 31, 61, and 62 of the Madhya Pradesh Industrial Relations Act, 1960, seeking permanent categorization as a Junior Division Clerk with permanent salary. The Labour Court, in Case No. 107/M.P.I.R/98, found that the respondent had worked continuously for more than six months on a vacant post of Typist-Lower Division Clerk. Applying the exception under Standing Order 2(vi) of the Madhya Pradesh Industrial Employment (Standing Orders) Rules, 1963, the Labour Court held that she was entitled to be deemed a permanent employee and ordered her regularization as a Lower Division Clerk w.e.f. 20.07.1996. The Appellate Authority and the High Court affirmed this award. The Supreme Court considered whether the Labour Court's finding was perverse and whether the High Court's direction to classify the respondent as a Hindi Stenographer w.e.f. 27.11.1999 based on an order dated 17.11.2004 (which was under inquiry) was justified. The Court held that the concurrent findings of fact by the Labour Court, Appellate Authority, and High Court were not perverse and could not be interfered with. Regarding the classification as Hindi Stenographer, the Court clarified that the benefit was not derived from the order dated 17.11.2004 but from the respondent's long satisfactory service after being deemed a permanent typist. The Court upheld the High Court's direction with the clarification that it would not affect pending inquiries against other employees based on similar orders. The appeal was disposed of with no order as to costs, and all service benefits were directed to be computed and paid expeditiously.

Headnote

A) Industrial Law - Permanent Employment - Deemed Permanent - Exception to Standing Order 2(vi) - Madhya Pradesh Industrial Employment (Standing Orders) Rules, 1963 - The respondent, appointed as a daily wage Hindi Typist, worked continuously for more than six months on a vacant post. The Labour Court held that she satisfied the exception under Standing Order 2(vi) and was entitled to be deemed a permanent employee. The Supreme Court upheld this concurrent finding of fact, noting no perversity. (Paras 3-5)

B) Industrial Law - Scope of Interference - Concurrent Findings of Fact - The Supreme Court reiterated that in proceedings assailing a Labour Court's award, the higher forum cannot reappreciate evidence unless the finding is perverse. Since the finding that the respondent worked for more than six months was undisputed, the conclusion of permanent status was justified. (Paras 5-6)

C) Industrial Law - Regularization - Benefit Based on Long Service - The High Court directed classification as Hindi Stenographer w.e.f. 27.11.1999 based on an order dated 17.11.2004, which was under inquiry. The Supreme Court clarified that the benefit was not dependent on that order but on the respondent's long satisfactory service after being deemed a permanent typist. The direction was upheld with the clarification that it would not affect pending inquiries against others. (Paras 9-10)

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Issue of Consideration

Whether the Labour Court's finding that the respondent was entitled to be deemed a permanent employee under the exception to Standing Order 2(vi) of the Madhya Pradesh Industrial Employment (Standing Orders) Rules, 1963 was perverse and whether the High Court's direction to classify the respondent as a Hindi Stenographer based on an order under inquiry was justified.

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Final Decision

The Supreme Court dismissed the appeal, upholding the Labour Court's award dated 10.03.2000 and the High Court's order dated 16.02.2010, with the clarification that the benefit of classification as Hindi Stenographer was not based on the order dated 17.11.2004 but on the respondent's long service. All service benefits to be computed and paid expeditiously. No order as to costs.

Law Points

  • Permanent employee
  • Temporary employee
  • Deemed permanent
  • Standing Orders
  • Concurrent findings of fact
  • Limited scope of interference
  • Madhya Pradesh Industrial Relations Act
  • 1960
  • Madhya Pradesh Industrial Employment (Standing Orders) Rules
  • 1963
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Case Details

2019 LawText (SC) (9) 93

Civil Appeal No(s). 5814/2011

2019-09-26

A.S. Bopanna, Hrishikesh Roy

Mrs. Pragati Neekhra (for appellants), Mr. Tapesh Kumar Singh (for respondent)

State of Madhya Pradesh & Ors.

Kumari Arati Saxena

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Nature of Litigation

Civil appeal against the order of the Division Bench of the High Court of Madhya Pradesh at Gwalior upholding the Labour Court's award granting permanent status to the respondent.

Remedy Sought

The respondent sought categorization as a permanent Junior Division Clerk with permanent salary structure.

Filing Reason

The respondent was appointed as a daily wage Hindi Typist and claimed permanent status after working continuously for more than six months.

Previous Decisions

Labour Court awarded permanent status w.e.f. 20.07.1996; Appellate Authority upheld the award; High Court dismissed the State's writ petition and directed classification as Hindi Stenographer w.e.f. 27.11.1999.

Issues

Whether the Labour Court's finding that the respondent was entitled to be deemed a permanent employee under the exception to Standing Order 2(vi) was perverse. Whether the High Court's direction to classify the respondent as a Hindi Stenographer based on an order under inquiry was justified.

Submissions/Arguments

Appellants-State argued that the respondent was appointed on daily wages not against a clear vacancy, and the High Court erred in relying on an order dated 17.11.2004 which was under inquiry. Respondent argued that she had worked continuously for more than six months and satisfied the exception under Standing Order 2(vi), and the concurrent findings of fact should not be disturbed.

Ratio Decidendi

A temporary employee who works continuously for more than six months on a vacant post is deemed a permanent employee under the exception to Standing Order 2(vi) of the Madhya Pradesh Industrial Employment (Standing Orders) Rules, 1963. Concurrent findings of fact by lower courts cannot be interfered with unless perverse.

Judgment Excerpts

The Labour Court on taking note of the legal position as also the factual position emerging in the case had recorded a factual finding that the respondent herein had worked for more than six months continuously on the vacant post of Typist- Lower Division Clerk from the date of the appointment. In that light we are of the opinion that the consideration as made by the Labour Court is to take note of the claim which was put forth that though the respondent was appointed as a temporary employee she has satisfied the condition to be deemed as a permanent employee as per the said Exception contained in the Standing Order and had accordingly considered and ordered that the respondent be treated as a permanent employee which is justified in the factual background arising in the instant case. When such conclusion is reached concurrently by the three courts below such finding of fact would not call for interference in the proceedings of the present nature where the scope for examination is limited.

Procedural History

The respondent filed an application under Sections 31, 61, and 62 of the Madhya Pradesh Industrial Relations Act, 1960 before the Labour Court, Gwalior (Case No. 107/M.P.I.R/98). The Labour Court awarded permanent status w.e.f. 20.07.1996 on 10.03.2000. The State appealed to the Appellate Authority (Appeal No. 269/MPIR/2000), which upheld the award. The State then filed a writ petition (W.P. No. 4225/2005) before the High Court of Madhya Pradesh at Gwalior, which dismissed the petition on 16.02.2010. The State appealed to the Supreme Court by way of Civil Appeal No. 5814/2011, which was disposed of on 26.09.2019.

Acts & Sections

  • Madhya Pradesh Industrial Relations Act, 1960: 31, 61, 62
  • Madhya Pradesh Industrial Employment (Standing Orders) Rules, 1963: Standing Order 2(vi)
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