Case Note & Summary
This batch of appeals arises from judgments of various High Courts directing regularisation of workmen employed by Oil and Natural Gas Corporation (ONGC) as contingent employees. The core issue revolves around the interpretation of clause 2(ii) of ONGC's Certified Standing Orders, which states that a temporary workman who has completed 240 days of attendance in twelve consecutive months and possesses minimum qualifications 'may be considered for conversion as regular employee.' The High Courts, relying on the Supreme Court's decision in Oil and Natural Gas Corporation Limited v Petroleum Coal Labour Union (PCLU), held that this clause confers a right to regularisation. ONGC challenged these decisions, arguing that PCLU was per incuriam as it did not consider binding precedents on Item 10 of Schedule V of the Industrial Disputes Act, 1947 (ID Act), and that the clause only provides for consideration, not automatic regularisation. Additionally, ONGC contended that the workmen had bypassed the remedy under the ID Act by directly approaching the High Court under Article 226 of the Constitution. The Supreme Court examined the ingredients of unfair labour practice under Item 10, which prohibits employing workmen as temporaries for years with the object of depriving them of permanent status. The court noted that the object must be established, and mere continuation as temporary does not automatically amount to unfair labour practice. The court also considered the applicability of the Constitution Bench decision in Secretary, State of Karnataka v Umadevi, which held that regularisation of irregularly appointed employees is not permissible unless they were appointed through a proper selection process. The court questioned whether the High Courts could render findings of unfair labour practice in writ proceedings without the workmen leading evidence before the Industrial Tribunal. The judgment is pending final decision, with the court having heard arguments on the points of law.
Headnote
A) Industrial Law - Unfair Labour Practice - Item 10 of Schedule V of Industrial Disputes Act, 1947 - Interpretation - The court considered whether employing workmen as temporaries for years with the object of depriving them of permanent status constitutes unfair labour practice - Held that the object must be established, and mere continuation as temporary does not automatically amount to unfair labour practice (Paras 5-7). B) Certified Standing Orders - Regularisation - Clause 2(ii) of ONGC Certified Standing Orders - The clause provides that a temporary workman who has put in 240 days and possesses minimum qualifications 'may be considered for conversion as regular employee' - The court in PCLU interpreted this as conferring a right to regularisation, but the present court questioned this interpretation, noting that the language is permissive and not mandatory (Paras 11-12). C) Constitutional Law - Regularisation - Umadevi Principles - Applicability to Labour Law - The court examined whether the Constitution Bench decision in Secretary, State of Karnataka v Umadevi (2006) 4 SCC 1 applies to labour law disputes - Held that Umadevi principles regarding regularisation through public employment are applicable and cannot be bypassed by resorting to labour law remedies (Para 4). D) Industrial Law - Jurisdiction - Article 226 of Constitution - The court considered whether a finding of unfair labour practice can be rendered in writ proceedings without the workmen leading evidence in a reference under the ID Act - Held that such findings require evidence and cannot be made in summary proceedings under Article 226 (Para 4).
Issue of Consideration
Whether the decision in PCLU is per incuriam; whether clause 2(ii) of Certified Standing Orders confers a right to regularisation; whether Umadevi applies to labour law; ingredients of unfair labour practice under Item 10; whether a finding of unfair labour practice can be rendered in Article 226 proceedings without evidence before Industrial Tribunal
Law Points
- Interpretation of Certified Standing Orders
- Unfair Labour Practice under Item 10 of Schedule V of ID Act
- Regularisation of temporary workmen
- Applicability of Umadevi to labour law
- Jurisdiction of Industrial Tribunal
