CHIEF CONSERVATOR OF FORESTSversusJAGANNATH MARUTI KONDHARE

                CHIEF CONSERVATOR OF FORESTS                                A
                                    v.
                JAGANNATH MARUTI KONDHARE

                          DECEMBER 6, 1995
                                                                             B
     (A.M. AHMADI, C.J., B.L. HANSARIA AND S.C. SEN, JJ.)


        Industrial Disputes Act 1947 s.2(j)-Maharashtra Recognition of Trade
Unions and Prevention of Unfair Labour Practices Act 1971-"ln-
dustry''-Scheme undertaken by Forest Department for creation of park under C
bio-aesthetic development for benefit of urban population, or social forestry
work, whether sovereign function vf state-Whether Forest Depmtment can be
"industry''-Held, dichotomy or sovereign and non-sovereign function does not
exist-It would depend on nature of power and manner of its exer-
cise-Scheme, held, is not part of inalienable or inescapable function of
state-Such work could be undertaken by an agency other than an instrumen- D
tality of state-Except the strictly understood sovereign function, welfare ac-
tivities of the state would come within the definition of industry-Sovereign
functions-Employment Guarantee Schemes.

       Maharashtra Recognition of Trade Unions and Prevention of Unfair E
Labour Practices Act 1971-Schedule W, item 6-Unfair labour prac-
tice-Workmen employed as casual workers for years-{]nfair labour practice
whether established-Whether burden on workmen to establish that object of
continuing them for years as casual workers was to deprive them of status
and privileges of pennanent employees-Held, object of State Act, inter alia,
being prevention of unfair labour practices, it would be thwmted if burden F
placed on workman which he cannot reasonably discharge-Inference may be
drawn on the basis offacts of case-Further, as in the present case, pennanen-
cy writ large, and yet persons are kept in jobs on casual basis for years-State
government, held, had indulged in unfair labour practice-Minimum· Wages
Act 1948.
                                                                            G
       Maharashtra Recognition of Trade Union and Prevention of Unfair
Labour Practices Act 1971-Schedule W, item 6-Unfair labour prac-
tice---Regularisation of workmen employed by Forest Department whether to
be interfered with--Held, concerned workmen having been employed under
schemes to advance objects having pennanent basis, relief of regularisation H
                                   259
    260                  SUPREME COURT REPORTS [1995] SUPP. 6 S.C.R.

A not to be inteifered with-Further, right to be paid wages mealll for per-
  manent workers automatically flows from regularisatio11--Financia/ strain of
  state to reason to deny pennanency to workmen-Relief of regularisation,
  however, not ipso facto available to all casual employees either of Forest
  Dep01tment or any other dep01tment of State-Claim of casual employees for
B permanency to be decided on merits of each cas~Regula1isa­
  tion-Maharashtra Employment Guarantee Act 1977, S.13-lndustrial Dis-
  putes Act 1947.

        Workmen employed in the Panchgaon Parwati Scheme near Pnne,
  and in social forestry work in Ahmednagar District, moved the Indnstrial
C Tribnnal alleging unrair labour practices being practised by the Forest
  Department or the State government. The Panchgaon Parwati Scheme,
  based on a policy taken in April 1976, was to be initially for a period of
  five years and an area or about 245 hectares. The scheme was for the
  creation or a park under bio-aesthetic development for the benefit of the
D urban population and 'to fulfil bio-aesthetic, recreational and educational
  aspirations of the people .. ." The Forest Division was also doing afforesta·
    tion for soil/moisture conservation under various State level schemes as
    well as Employment Guarantee Schemes for a period of five years.

        The Industrial Tribunal found that the workmen had admittedly
E been in the employment of the State for 5-6 years and in each year had
  worked for a period ranging from 100 to 330 days.

        The questions for determination by this court were whether the
  Forest Department of. the State government is an 'industry' within the
F meaning of Section 2(j) of the Industrial Disputes Act 1947, which defini-
  tion had been adopted by the Maharashtra Recognition of Trade Unious
  and Prevention of Unfair Labour Practices Act 1971 (State Act); and
  whether the relief of regnlarisation given by the Industrial Court needed
  interference.

G       The State contended that the function discharged by the Forest
  Department nuder the schemes in question was sovereign in nature; that
  to be found to be an unfair labour practice, it was not sufficient that the
  workmen had been employed as casuals for years, but that the workmen
  were further required to establish that the object of continuing them for
H years was to deprive them of the status and privileges of permanent
        CHIEFCONSERVATOROFFORESTS v.J.M.KONDHARE                        261

employees; that the relief of regularisation was not justified as some of the A
workmen had been employed under the State Act; and that the drain on
the State exchequer if all workers like the respondent-workmen were to be
paid as permanent employees would be enormous, making it difficult for
the State to engage in other welfare activities. It was further argued that
the decision of the seven Judge bench of this Court in Bangalore Water· B
Supply and Sewerage Board v.. R. Rajappa, (1978) 3 SCR 207 needed
reconsideration.

      It was contended for the workmen that those functions alone which
are inalienable can be called sovereign, and that the burden of establishing
the object of an employer in employing workmen as casual workmen for           C
years is within the subjective satisfaction of the employer and should not
be fastened on the workmen.

      Dismissing the appeals, this Court

      HELD : 1. Sovereign functions 'strictly understood' alone qualify for    D
exemption from the application of the law relating to workmen in industry,
and not the welfare activities or economic adventures undertaken by the
government. Further, even in the departments discharging sovereign func-
tions, if there are units which are industries and they are substantially
severable, then they can be considered to be an industry. (267-A]              E
      Bangalore Water Supply and Sewerage Board v. R. Rajappa, (1978) 3
SCR 207, followed.

      As to which activities could be called sovereign functions strictly
understood, has not been spelt out in Bangalore Water Supply and Sewerage      F
Board. Apart from legislative power, administration of laws and exercise
of judicial power, there may be some other functions also regarding which
a view could be taken that the same too is a sovereign function. (267-B]

    . JJ. Shrima/i v. District Development Officer, Mehsana, (1989) 1 Guj      G
LR 396, approved.

      Corporation of the City of Nagpur v. Its Employees, [1960) 2 SCR 942,
relied on.

      Coomber v. Justices of Berks, (1883-84) 9 AC 61 and Federated State H
    262                   SUPREME COURT REPORTS (1995] SUPP. 6 S.C.R.

A   School Teachers' Association of Austra/ila v. State of Victoria, (1929) 41 CLR
    569, refereed to.

           The dichotomy of sovereign and non-sovereign functions does not
    really exist - it would i!epend on the nature of the power and the manner
    of its exercise. In a welfare state, functions of the state are not only the
B   defence of the country or administration of justice or maintaining law and
    order but extends to regulating and controlling the activities of people in
    almost every sphere, educational, commercial, social, economic, political
    and even marital. Because of this the demarcating line between sovereign
    and non-sovereign powers has largely disappeared. [269-C-E]
c
          Nagendra Rao & Co. v. State of Andhra Pradesh, JT (1994) 5 SC 572,
    followed.

          2. The scheme as well as the social forestry work undertaken by the
D   Forest Department connot be regarded as a part of the sovereign function
    of the state. Nor are they inalienable or inescapable functions of the state.
    Nor are they inalienable or inescapable functions of the state for the reason
    that the scheme was intended even to fulfil the recreational and educational
    aspirations of the people. There is no doubt that such a work could well be
    undertaken by an agency which is not required to be an instrumentality of
E   the state. There was therefore no threshold bar in knocking on the door of
    the Industrial Courts by the workmen making a grievance about adoption
    of unfair labout practice be the appellants. [270-G-H)

          3. The object of the State Act, inter alia, being prevention of certain
    unfair labour practices, the same would be thwarted or get frustrated if
F   such a burden is placed on a workman he cannot reasonably discharge. It
    would be permissible on the facts of a particular case to draw the inference
    that the object of continuing the workmen as casuals for years was to
    deprive them of the status and privileges of permanent employees. In the
    present case, it would have required the employer to pay the workmen at a
G   rate higher than the one fixed under the Minimum Wages Act 1948.
                                                                       [272-D-E]

          4. The scheme was meant to cater to the recreational and educational
    aspirations of the populace, and the environment-pollution-care work of
    social forestry whose need is on the increase because of increase in
H   pollution, which are not ephemeral but permanent objects. If, even in such
       CHIEFCONSERVATOROFFORESTS v.J.M.KONDHARE                       263

projects, persons are kept in jobs on casual basis for years the object A
manifests itself; no scrutiny is required. [272-F-GJ                             '

      5. TI1e workmen being employed under schemes to advance objects
having permanent basis, and having worked for more or less five years
continuously by the time they approached the· Industrial Court, no inter-
                                                                             B
ference with the relief of regularisation is called for. [273-F, HJ

      Delhi development Horticulture Employees' Union v. Delhi Administra-
tion, Delhi, JT (1992) 1 SC 394, distinguished.

     State of Haryana v. Piara Singh, [1992J 4 SCC 118, applied.             c
     6. There is no factual basis for the submission that some of the
workmen had been employed under the Maharashtra Employment
Guarantee Act 1977. Also, a perusal of this Act shows that it has not
excepted the application of the Industrial Dispntes Act 1947. This is D
apparent from the perusal of Section 13 of this Act. Further, this Act
having been brought into force from 1978, could not have applied to the
appointments at hand most of whom are of the year 1977. [274-A-BJ

       7. The argument relating to financial burden of the state is one of
despair or in terrorem. If this argument is taken to its logical end, the E
justification for paying even minimum wages could wither away, leaving
any employer, not to speak of model employer like the state, to exploit
unemployed persons. The relief of permanency to the respondent-workmen
cannot be denied only because in that case they would be required to be
paid wages meant for permanent workers. This right flows automatically F
from the relief of regularisation to which no objection can reasonably be
taken. [274-D, HJ

      8. However, the relief made .available to the respondents is not one
which would be available ipso facto to all the casual employees either of
the Forest Department or any other department of the state. Claim of         G
casual employees for permanency or for higher pay shall have to be
decided on the merits of their own cases. [275-AJ

      9. Since the appellants did not raise the question of reconsideration
of the decision in Bangalore Water Supply and Sewerage Board even on H
    264                  SUPREME COURT REPORTS [1995] SUPP. 6 S.C.R.

A November 6, 1992, when this court passed an earlier order in this case,
    counsel was not permitted to address the court on the need for reconsider-
    ing the ratio of that decision. [265-C]

         CIVIL APPELLATE .JURISDICTION: Civil Appeal No. 4375 of
    1990 Etc. Etc.
B
         From the Judgment and Order dated 24.12.85 of the Bombay High
    Court in W.P. No. 5480 of 1985.

          S.K. Dhokakia, M.C. Bhandare, N.B. Shetye and Ms. Indira Jaising,
C S.M. Jadhav, AS. Bhasme, Joshi, only in C.A No. 761-62/91, AM. Khan-
    wilkar, Bharat Sangal, N.P. Midha and M.N. Shroff for the appearing
    parties.

          The Judgment of the Court was delivered by

D         HANSARIA, J. Two questions in the main need our determination
  in this batch of appeals which are by the Chief Conservator of Forests,
  State of Maharashtra. The first and foremost question is whether Forest
  Department of the State Government is an "industry" within the meaning
  of section 2G) of the Industrial Disputes Act, 1947 (hereinafter) 'the
E Central Act'), which definition has been adopted by the Maharashtra
  Recognition of Trade Unions and Prevention of Unfair Labour Practices
  Act, 1971 (for short 'the State Act'). We shall have then to address
  ourselves to the question whether in the ca;es at hand the employer,
  namely the State Government, had indulged in unfair labour practice
F visualised by item 6 of Schedule IV of the State Act, as alleged by the
  respondents before the Industrial Court, Pune/Ahmednagar. If these ques-
  tions would be answered in affirmative, we would be required to consider
  whether the directions given by the aforesaid Industrial Courts need our
  interference.

G       2. Before applying our mind to the first question, it would be apposite
  to mention that this point had not been before the Industrial Court and it
  is because of this that the High Court, on being approached against the
  award of the Industrial Court, did allow this point to be agitated before it.
  This Court, however, felt, in view of the importance of the question, that
H the contention may be gone into as would appear from the order passed
    CHIEF CONSERVATOR OF FORESTS v. J.M KONDHARE[HANSARIA,J.j 265


on 6.11.1992. But as a contention was advance for the respondents- A
workmen that the dispute is fairly old and if the matter were to be
remanded to Industrial Court, the workmen would suffer second round of
litigation causing hardship to them, a direction was given to the counsel for
the appellants to place the actual data, on record of this Court itself, on
the basis of which it was contended that the Forest Department was not B
an 'industry'. It was so done.

       3. Shri Dholakia, appearing for the appellants, first urged, and per-
sistently, that to decide this question we may not be guided by what was
held in this regard by a 7-Judge Bench of this Court in Bangalore Water-
Supply & Severage Board, etc. v. R. Rajappa & others, [1978] 3 SCR 207.
                                                                               c
According to the learned counsel this decision needs reconsideration and
we should so order. As this was not the stand of the appellants even when
the order of 6.11.1992 was passed we did not permit Shri Dholakia to
address us on the need of reconsidering the ratio of the aforesaid decision.
                                                                               D
       4. We, therefore, propose to examine the first question on the touch
stone of what was held by this Court in Bangalore Water-Supply case. A
perusal of that judgment shows that the main judgment was written by
Krishna Iyer, J. (on behalf of self, Bhagwati and Desai, JJ. as would appear
from the reporting of this judgment in AIR 1978 SC 548). Reg, CJ en-           E
dorsed the opinion and conclusion of Krishna Iyer, J. in a concurrent
judgment giving his own reasons. Though Tulzapurkar, J. had stated in the
order passed on the day the judgment was delivered (February 21, 1978)
that reasons for concurrence and divergence if any would be given later,
no such reasons were given, Chandrachud, J. (as he then was put on record      F
his reasons on April 7, 1978 by which date he had become Chief Justice.
Jaswnt Singh, J. also did the same.


      5. The aforesaid shows that the conclusions reached by Krishna Iyer,
J. had been endorsed fully by two other learned Judges and Beg. CJ did G
the same but for different reasons. We wonld, therefore, confme our
attention to the conclusions reached by Krishna Iyer, J. which appear at
pages 282 and 283 of the Report. The one which is relevant for our purpose
is what finds place under serial titled IV "The dominant nature test", which
was spelt out as below :                                                     H
    266                   SUPREME COURT REPORTS [1995] SUPP. 6 S.C.R.

A           "(a) Where a complex of activities, some of which qualify for
            exemption, others not, involves employees on the total undertaking,
            some of whom are not 'workmen' as in the University of Delhi Case
            or some departments are not productive of goods and services if
            isolated, even then, the predominant nature of the services and the
            integrated nature of the departments as explained in the Corpora-
B           tion of Nagpur, will be true test. The whole undertaking will be
            'industry' although those who are not 'workmen' by definition may
            not benefit by the status.

            (b) Notwithstanding the previous clauses, sovereign functions,
c           strictly understood, alone qualify for exemption, not the welfare
            activities or economic adventures undertaken by government or
            statutory bodies.

            (c) Even in departments discharging sovereign functions, if there
            are units which are industries and they are substantially severable,
D           then they can be considered to come within section 2G).

            (d) Constitutional and competently enacted legislative provisions
            may well remove from the scope of the Act categories which
            otherwise may be covered thereby."

E          (It may be stated that it is in pursuance to what was stated under ( d)
    above that the aforesaid amendment of 1982 was made which provided for
    exclusions of some categories, one of which is "any activity of the Govern-
    ment relatable to the sovereign functions of the Government including all
    the activities carried on by the departments of the Central Government
F   dealing with defence research, atomic energy and space". This is exception
    no. (6) of the 9 mentioned in the amended definition). 6. Shri Dholakia
    being required to address us as to whether the Forest Department can be
    said to be an "industry" as per the ratio in Bangalore Water-Supply case,
    urges that it cannot be, because the function discharged by the department,
    more particularly the one relatable to the scheme in question, named
G   Pachgaon Parwati Scheme undertaken in Pnne district, is sovereign in
    nature, which would as per the aforesaid decision itself qualify for exe~p­
    tion. This is also the contention advanced by Shri Bhandare, appearing for
    the appellants in the cases relatable to Ahmednagar district. Th;,; stand of
    the learned counsel for the appellants is strenuously chal!Paged by Ms.
H   Jaising, appearing for the respondent-workmen.
    CHIEFCONSERVATOROFFORESfSv.J.M.KONDHARE[HANSARIA,J.[ 267

       7. & per the Bangalore Water-Supply case sovereign functions "strict-    A
ly understood" alone qualify for exemption; and not the welfare activities
or economic adventures undertaken by the Government. This is not all. A
rider has been added that even in the departments discharging sovereign
functions, if there are units which are industries and they are substantially
severable, then they can be considered to be an industry. As to which           B
activities of the Government could be called sovereign functions strictly
understood, has not been spelt out in the aforesaid case.


       8. Ms. Jaising, however, urges that as the majority had accepted the
test explained in the C01poration of the City of Nagpur v. Its Employees,       C
[1960] 2 SCR 942, we should note what was stated about sovereign func-
tions in that decision. In that judgmeni this aspect has been dealt at pages
953 to 955 of the Report. The Bench of that case first noted the rival
contention advanced in this regard, which by the learned counsel for the
Corporation was to enlarge the scope of these functions as to comprehend
all the welfare activities of a modern State, whereas the learned counsel       D
for the respondents sought to confine them to what are aptly termed "the
primary and inalienable functions of a constitutional government". In sup-
port of the contentions advanced reference was made to Holland's
Jurisprudence as to which it was observed by the Bench that the same had
no relevance. The Bench then referred to what was stated by Lord Watson         E
in Coomber v. Justices of Berks, (1883-84) 9 Appeal Cases 61, in which the
functions such as administration of justice, maintenance of order and
repression of crime were described among the primary and inalienable
functions. Reference was then made to the dissenting judgment of the
Isaacs, J. in The Federated State School Teachers' Association of Australia
v. The State of Victoria, (1929) 41 C.L.R. 569, in which the learned Judge      F
stated as below at page 585 :


        "Regal functions are inescapable and inalienable. Such are the
        legislative power, the administration of laws, the exercise of the
        judicial power, Non-regal functions may be assumed by means of          G
        the legislative power. But when they are assumed the State acts
        simply as a huge corporation, with its legislation, the charter. Its
        action under the legislation, so far as it is not regal execution of
        the law is merely analogous to that of a private company similarly
        authorised."                                                            H
    268                   SUPREME COURT REPORTS [1995] SUPP. 6 S.C.R.

A         The Bench thereafter observed that the aforesaid clearly mark out
    the ambit of the regal functions as distinguished from the other powers of
    a State. This shows that as per the Corporation of Nagpur case those
    functions alone which are inalienable can be called sovereign. Ms. Jaising
    would like us to take the same stand.
B
           9. Shri Dholakia and Shri Bhandare, however, urged that in view of
    the constitutional duty imposed on States, to undertake many activities
    including preservation of environment, a la - Article 48A of the Constitu-
    tion , the extent of sovereign functions may not be confined to the aforesaid
    three inasmuch as other functions could also be inalienable : and protection
C   of environment in the present state of pollution is one such function, which
    cannot be, and would not be, undertaken by any private agency in a
    meaningful way.

         10. In support of the aforesaid contention, the learned counsel for
D the appellants have relied on a decision of a Division Bench of the Gujarat
  High Court rendered by one of us (Ahmadi, J. as he then was) in the case
  of J.!. Shrimali v. District Development Officer, Mehsana & Ors., (1989) 1
  Gujarat Law Reporter 396. This aspect of the matter has been dealt with
  at pages 405 to 410 of the judgment, reference to which shows that keeping
E in view the special facts and circumstances of the case (paragraph 11),
  namely undertaking of famine and drought relief works by the State
  Government by introducing certain schemes to provide relief and succour
  works to the affected people, instead of distributing doles which may hurt
  the dignity, self respect and sentiments of those receiving the same, it was
F held that it would be difficult to hold the undertaking to be an 'industry'.
  What really follows from this judgment is that apart from the aforesaid
  three functions, there may be some other functions also regarding which a
  view could be taken that the same too is a sovereign function. We accept
  this.

G         11. As to which function could be, and should be, taken as regal or
    sovereign function has been recently examined by a Bench of this Court,
    to which one of us (Hansaria, J.) was a party. This was in Nagendera Kao
    & Co. v. The State of Andhra Pradesh, IT 1994 (5) SC 572, in which case
    Sahai, J. Speaking for the Bench examined this question in detail in the
H   background of the stand of the respondent-State pleadmg absence of
    CHIEF CONSERVATOR OFFORESfS v. J.M. KONDHARE [HANSARIA, J.] 269


vicarious liability because of the doctrine of sovereign immunity. This            A
aspect has been dealt in paras 21 to 24. Para 21 opens by saying that the
old and archaic concept of a sovereignity does not survive as sovereignity
now vests in the people. It. is because of this that in the aforesaid Australian
case the distinction between sovereign and non-sovereign functions was
categorised as regal and non-regal. In some cases the expression used is           B
State function, whereas in some Governmental function.

       12. We may not go by labels. Let us reach the hub. And the same is
that the dichotomy of sovereign and non-sovereign functions does not really
exist - it would all depend on the nature of the power and manner of its
exercise, as observed in para 23 of Nagendra Rao's case. As per the C
decision in this ca,e, one of the tests to determine whether the executive
function is sovereign in nature is to find out whether the State is answerable
for such action in courts of law. It was stated by Sahai, J. that like defence
of the country, raising armed forces and maintaining it, making peace or
war, foreign affairs, power to acquire and retain territory, are functions D
which are indicative of external sovereignity and are political in nature.
They are, therefore, not amenable to the jurisdiction of ordinary civil court
inasmuch as the State is immune from being sued in such matters. But then,
according to this decision the immunity ends there. It was then observed
that in a welfare State, functions of the State are not only the defence of E
the country or administration of justice or maintaining law and order but
extends to regulating and controlling the activities of people in almost every
sphere, educational, commercial, social. economic, political and even mari-
tal. Because of this the demarcating line between sovereign and non-
sovereign power has largely disappeared.                                       F

      13. The aforesaid shows that if we were to extend the concept of
sovereign function to include all welfare activities as contended on behalf
of the appellants, the ratio in Bangalore Water-Supply case would get
eroded, and substantially. We would demur to do so on the face what was
stated in the aforesaid case according to which except the strictly under- G
stood sovereign function, welfare activities of the State would come within
the purview of the definition of industry; and, not only this, even within the
wider circle of sovereign function, there may be an inner circ)e encompass-
ing some units which could be considered a>' industry if substantially
severable.                                                                     H
    270                  SUPREME COURT REPORTS [1995) SUPP. 6 S.C.R.

A       14. This is not all, as Shri Dholakia has submitted that the Pachgaon
  Parwati Scheme (and for that matter the social forestry work undertaken
  in Ahmednagar district, in appeals relating to which Shri Bhandare has
  addressed us) being meant for preservation of forests and environment has
  to be regarded, in any case, as part of inalienable function inasmuch as the
B type of work which was undertaken under that scheme could not have been
  done by a private individual or entity.

          15. A perusal of the affidavit filed by the Chief Conservator of
  Forests on 5.12.1992, pursuant to our order of 6.11.1992 shows that the
C Pachgaon Parwati Scheme was framed as per the Government Resolution
  based on the policy decision taken in April 1976. The Scheme was to be
  initially for a period of 5 years and an area of about 245 hectares situated
  on a hill plateau on the southern outskirts and within easy access of Pune
  City was selected for creation of a park under bio-aesthetic development
  for the benefit of the urban population. It is further stated that the scheme
D was "primarily intended to fulfil bio-aesthetic, recreational and educational
  aspirations of the people which will have inestimable indirect benefit of
  producing enlightened generation of conservationists of nature inclusive of
  forests and wild life for the future". (Page 137) The affidavit goes on to
  state (at page 138) that the Pune Forest Division is also doing afforestation
E for soiVmoisture conservation under various State level schemes as well as
  Employment Guarantee Schemes all of which are for a period of 5 years.

          16. The aforesaid being the crux of the scheme to implement which
    some of the respondent were employed, we are of the view that the same
F   cannot be regarded as a part of inalienable or inescapable function of the
    State for the reason that the scheme was intended even to fulfil the
    recreational and educational aspirations of the people. We are in no doubt
    that such a work could well be undertaken by an agency which is not
    required to be even an instrumentality of the Stale.

G          17. This being the position, we hold that the aforesaid scheme
    undertaken by the Forest Department cannot he regarded as a part of
    sovereign function of the State, and so, it was open to the respondents to
    invoke the provisions of the State Act. We would say the same qua the
    social foresting work undertaken in Ahmednagar district. There was, there-
H   fore, no threshold bar in knocking the door of the Industrial Courts by the
    CHIEF CONSERVATOR OFFORESI'S v. J.M. KO ND HARE [HANSARIA, J.J 271


respondents making a grievance about adoption of unfair labour practice         A
by the appellants.

       18. This takes us to the second main question as to whether on the
facts of the present case could it be held that the appellants were guilty of
adopting unfair labour practice. As already pointed out, the respondents
alleged the aforesaid art by relying on what has been stated under item 6       B
of Schedule IV of the State Act which reads as below :

        "To employ employee as "badlis", casuals or temporaries and to
        continue them as such for years, with the object of depriving them
        of the status .and privileges of permanent employees.                   c
       19. The Industrial Court has found the appellants as having taken
recourse to unfair labour practice in the present cases because the respon-
dents-workmen who had approached the Court had admittedly been in the
employment of the State for 5 to 6 years and in each year had worked for
period ranging from 100 to 330 days. Ms. Jaising draws our attention in         D.
this context to the statement filed by the appellants themselves before the
Industrial Court, a copy of which is at pages 75 to 76 or C.A. No. 4375/90.
A perusal of the same shows that some of the respondents had worked for
a few days only in 1977 and 1978, though subsequently they themselves had
worked for longer period, which in case of Gitaji Baban Kadarn, whose           E
name is at serial No. 4 went upto 322 in 1982, though in 1978 he had worked
for 4-112 days. (Similar is the position qua some other respondents).

       20. According to Ms. J aising the lesser number of days worked by
say Gitaji in 1978, could have been because of his having sought employ-
ment in that year towards the fag-end or it may also be because of the fact     F
that to start with large number of persons were engaged, which by 1981-82
got settled around 60, as would appear from the statement at page 66 of
the aforesaid appeal. It is brought to our notice that only 25 such person
had approached the Industrial Court of Pune (this number is 15 in the
other batch) and as regards these 25 there should not be any doubt that
they worked for long despite which they were continued as casuals, which        G
fact is enough to draw the inference that the same was with the object of
depriving them of the status and privileges of permanent employees.
Learned counsel urges that on these facts it was the burden of the employer
to satisfy the Industrial Court that the object was not as alleged by the
workmen.                                                                        H
    272                   SUPREME COURT REPORTS [1995) SUPP. 6 S.C.R.

A         21. Shri Dholakia would not agree to this submission as, according
    to him, the item in question having not stopped merely by stating about the
    employment of persons as casuals for years being sufficient to describe the
    same as unfair labour practice, which is apparent from what has been in
    the second part of the item, it was the burden of the workmen to establish
B   that the object of continuing them for years was to deprive them of the
    status and privileges of permanent employees. Ms. J aising answers this by
    contending that it would be difficult for any workmen to establish what
    object an employer in such a matter has, as that would be in the realm of
    his subjective satisfaction known only to him. She submits that we may not
    fasten a workman with such a burden which he cannot discharge.
c
        22. We have given our due thought to the aforesaid rival contentions
  and, according to us, the object of the State Act, inter alia, being prevention
  of certain unfair labour practices, the same would be thwarted or get
  frustrated if such a burden is placed on a workman which he cannot
D reasonably discharge. In our opinion, it would be permissible on facts of a
  particular case to draw the inference mentioned in the second part of the
  item, if badlis, casuals or temporaries are continued ·as such for years. We
  further state that the present was such a case inasmuch a5 from the
  materials on record we are satisfied that the 25 workmen who went to
  Industrial Court of Pune (and 15 to Industrial Court, Ahmednagar) had
E been kept as casuals for long years with the primary object of depriving
  them the status of permanent employees inasmuch as giving of this status
  would have required the employer to pay the workmen at a rate higher
  than the one fixed under the Minimum Wages Act. We can think of no
  other possible object as, it may be remembered that the Pachgaon Parwati
F Scheme was intended to cater to the recreational and educational aspira-
  tions also of the populace, which are not ephemeral objects, but par
  excellence permanent. We would say the same about environment-pollu-
  tion-care work of Ahmedanager, whose need is on increase because of
  increase in pollution. Permanency is thus writ large on the face of both the
  types of work. If, even in such projects, persons are kept in jobs on casual
G for years the object manifests itself; no scrutiny is required. We, therefore,
  answer the second question also against the appellants.

           23. The final point which needs our determination is regarding the
    reliefs granted by the Industrial Coor!, which is to make th.e workmen, in
H   both the matters, permanent with all benefits of a permanent worker, which
   CHIEF CONSERVATOR OFFORESI'S v. J.M. KO ND HARE [HANSARIA, J.) 273

would include payment of wages etc. at the rate meant for a permanent          A
worker.

       24. On the relief part, it is Shri Bhandare who principally addressed
us. His contention in this regard is that the relief of making the workmen
permanent, that is, to regularise them was not justified inasmuch as some      B
of them had been employed under the Maharashtra Employment Guaran-
tee Act, 1977. In any case the drain on State exchequer which would follow
if all workers like the respondents are to be paid as permanent employees
would be so enormous that the State would find it difficult to engage in
other welfare activities.
                                                                               c
       25. To bring home his submission regarding the unjust nature of the
relief relating to regularisation, Shri Bhandare sought to rely on the
decision v~ this Court in Delhi Development Horticulture Employees' Union
V. Delhi Administration, Delhi, IT 1992 (1) SC 394. We do not think that
thi; ratio of this decision is applicable to the facts of the present case     D
inasmuch as the employment of persons on daily wage basis under Jawahar
Rozgar Yojna by the Development Department of Delhi Administration,
whose claim for regularisation was dealt in the aforesaid case was entirely
different from that of the scheme in which the respondents-workmen were
employed. Jawahar Rozgar Y ojna was evolved to provide income for those
who are below the poverty line and particularly during the periods when        E
they are without any source of livelihood and, therefore, without any
income.whatsoever. It is because of this that the Bench observed that the
object of the scheme was not to provide right to work as such even to the
rural poor, much less to the unemployed in general. As against this, the
workmen who were employed under the schemes at hand had been so done           F
to advance objects having permanent basis as adverted to by us.

      26. Therefore, what was stated in the aforesaid case cannot be called
in aid at all by the appellants. According to us, the case is more akin to
that of Haryana v. Piara Singh and others, (1992] 4 SCC 118, in which this
Court favoured the State Scheme for regularisation of casual labourers who G
continued for a fairly long spell - say two or three years. (paragraph 51).
As in the cases at hand the concerned workmen had, by the time they
approached the Industrial Courts worked for more or less 5 years con-
tinuously, no case for interference with this part of the relief has been made
out.                                                                           H
    274                   SUPREME COURT REPORTS [1995) SUPP. 6 S.C.R.

A         27. We may also meet the contention that some of the workmen had
    been employed under the Maharashtra Employment Guarantee Act, 1977.
    As to this, we would first observe that no factual basis for this submission
    is on record. Indeed, in some of the cases it has been pointed out that the
    employer had not even brought on record any order of appointment under
B   this Act. This apart, a perusal of his Act shows that it has not excepted the
    application of the Industrial Disputes Act, 1947. This is apparent from the
    perusal of section 13 of this Act. It may be further pointed out that this
    Act having been brought into force from 1978, could not have applied to
    the appointments at hand most of whom are of t)le year 1977.

C         28. In so far as the financial strain on State exchequer is concerned,
    which submission is sought to be buttressed by Shri Dholakia by stating
    that in the Forests Department itself the casual employees are about 1.4
    lacs and if all of them were to be regularised and paid at the rate applicable
    to permanent workmen, the financial involvement would be in the neigh-
D   bourhood Rs 300 crores-a very high figure indeed. We have not felt
    inclined to bear in mind this contention of Shri Dholakia as the same has
    been brought out almost from the hat. The argument relating to financial
    burden of State is one of despair or in terrorem. We have neither been
    impressed by the first not frightened by the second inasmuch as we do not
    intend that the view to be taken by us in these appeals should apply,
E   proprio vigore, to all casual labourers of the Forests Department or any
    other Department of the Government.

           29. We wish to say further that if Shri Bhandare's submission is taken
    to its logical end, the justification for paying even minimum wages could
F   wither away, leaving any employer, not to speak of model employer like
    the State, lo exploit unemployed persons. To be far to Shri Bhandare it
    may, however, be stated that the learned counsel did not extend his
    submission this far, but we find it difficult to limit the submission of Shri
    Bhandare to payment of, say fair wages, as distinguished from minimnm
    wages. We have said so, because if a pay scale lias been provided for
G   permanent workmen that has been done by the State Government keeping
    in view its legal obligations and must be one which had been recommended
    by the State Pay Commission and accepted by the Government. We cannot
    deny this relief of permanency to the respondent-workmen only because in
    that case they would be required to be paid wages meant for permanent
H   workers. This right flows automatically from the relief of regularisation to
   CHIEFCONSERVATOROFFORESI'Sv.J.M.KONDHARE(HANSARJA,J.]                 275

which no objection can reasonably be taken, as already pointed out. We A
would, however, observe that the relief make available to the respondents
is not one which would be available ipso facto to all the casual employees
either of the Forests Department or any other Department of the State.
Claim of casual employees for permanency or for higher pay shall have to
be decided on the merits of their own cases.
                                                                                B
       30, For the reasons aforesaid, we find no ground to interfere with the
impugn~d order of the Industrial Courts. The appeals are, therefore,
dismissed. In the facts and circumstances of the case, we, however, make
no order as to costs.

U.R.                                                     Appeals dismissed.     c