Miss Lucy
← All judgments

U.P. State Sugar Corp. Ltd vs Niraj Kumar & Ors

Supreme Court31 July 2009R. M. Lodha · Tarun Chatterjee

Ratio decidendi

The rule this decision rests on

1. Daily-rated employees engaged during a crushing season to perform work of a temporary or casual nature, such as to meet additional workload, are to be classified as temporary workmen, not seasonal workmen, unless the employer explicitly engages them as seasonal workmen. 2. A seasonal workman's right to re-employment in the succeeding crushing season under the Standing Orders for Vacuum Pan Sugar Factories in U.P. is conditional upon: either (i) having worked during the whole of the previous crushing season, or (ii) having worked during the whole of the second half of the previous crushing season, meaning continuous employment from mid-season until the end of that season; mere engagement during part of a previous season does not confer such right. 3. The burden of proof lies on the workman to establish that he was engaged as a seasonal workman, and a finding to that effect recorded without material evidence on the record is based on no legal evidence and cannot be sustained.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

ReportableIN THE SUPREME COURT OF INDIACIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 3002 OF 2007
U.P. State Sugar Corporation Ltd.NowM/s Dowiala Sugar Company Ltd. DoiwalaThrough its Executive Director ...Appellant
Versus
Niraj Kumar and Ors. ...Respondents
WithCivil Appeal No. 4697/2006Civil Appeal No. 3189/2007Civil Appeal No. 3190/2007Civil Appeal No. 3191/07Civil Appeal No. 3192/2007
JUDGEMENT
R.M. Lodha, J.
This group of six appeals by special leave involving
identical issues was heard together and is being disposed of
by a common judgment.
1
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 Sugar Corporation Limited, (for

short, "Corporation"), is engaged in manufacture 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

respondent no. 1 (for short, "workman"), purely on

temporary/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 i.e. from

January 1, 1997; the workman worked upto April 15, 1997 and

on and after that 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

Corporation during the crushing season 1996-97 from January

2 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

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

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

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

also stated that the duration of crushing season 1996-97 was

from November 19, 1996 until May, 1997. The Corporation

3 denied that there was any illegal termination of services of the

workman.

6. Both the parties led oral as well as documentary 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 Labour Court

directed the Corporation to engage the workman 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 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 High Court.

8. The High Court held that there was no perversity

in the finding recorded by the Labour Court that the workman

was a seasonal workman. However, taking note of a decision

4 of this Court in Morinda Cooperative Sugar Mills Limited vs.

Ram Kishan1 , the High Court modified the award by directing

the 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

employment 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 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 be operated."

10. Workmen, in the Standing Orders, are classified in six

categories viz. ; (i) Permanent, (ii) Seasonal, (iii) Temporary, (iv)

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

11. A seasonal workman is:

"One who is engaged only for the crushing season:

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 1 JT 1995 (6) SC 547

5 lien as well as his retaining allowance. However, if he submits a satisfactory explanation of his not joining duty, he shall only 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.

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

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-

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.

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 management in the current season, shall be deemed to have been condoned by the management."

6 14. The question that falls for our consideration 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?

15. It is not that the daily rated employees 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.

Having 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 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 observing that the

counsel of the petitioner has not been able to show any

perversity in the finding recorded by the Labour Court. In our

view, the finding recorded by the Labour Court that the

7 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

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

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

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 thereof an

ordinary meaning of the expression "second half of the crushing

season" has to be given and that would mean the crushing

8 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

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

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

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 Morinda Cooperative Sugar

Mills Limited 1 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

9 in every crushing season as and when the purchase centres are

opened at mill or at any other place based on that judgment.

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. The parties will bear their own costs.

........................J (Tarun Chatterjee)

........................J (R. M. Lodha) New Delhi July 31, 2009.

10

This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.

Research this judgment with Miss Lucy

Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.

Try Miss Lucy free