HIMANSHU KUMAR VIDYARTHI AND ORS.versusSTATE OF BIHAR AND ORS.
- Citation
- 1997 INSC 322
- Decided
- 26 March 1997
- Disposal
- Dismissed
Holding
The termination of daily‑wage, temporary employees of a government‑run cooperative training institute does not amount to retrenchment under Section 25F of the Industrial Disputes Act, 1947, because such appointments are not within the definition of “industry” and the employees have no right to the posts.
Summary
The petitioners, who were appointed as daily‑wage assistant, driver and peons in a cooperative training institute of the Bihar government, had their services terminated by the institute's principal. They filed a writ petition alleging that their dismissal violated Section 25F of the Industrial Disputes Act, 1947, claiming it amounted to retrenchment. The Supreme Court examined whether the institute could be treated as an "industry" and whether the termination of such temporary, daily‑wage workers fell within the definition of retrenchment. The Court held that appointments regulated by statutory rules are excluded from the concept of industry, and that daily‑wage employees who have no right to the posts cannot be considered retrenched. Consequently, the termination was not deemed arbitrary or a violation of the Act, and the petition was dismissed.
Issues considered
- Whether a government department such as a cooperative training institute qualifies as an "industry" under the Industrial Disputes Act, 1947.
- Whether the termination of daily‑wage, temporary employees constitutes "retrenchment" within the meaning of Section 25F of the Act.
- Whether the termination of the petitioners' services is arbitrary.
Legislation cited
Subjects
Judgment
A HIMANSHU KUMAR VIDYARTHI AND ORS.
v.
STATE OF BIHAR AND ORS~
MARCH 26, 1997
B [K. RAMASWAMY AND D.P. WADHWA, JJ.]
Industrial Di~putes Act, 1947 :
S.25-F-Retrenchment-Cooperative Trai11ing Institute in State of
C Bihm~Daily wage e111ployee~Te11ni11ation of service~Held, eve1y depa1t-
me11t of Govemme11t cannot be treated to be "industry''-Wlien appointments
are regulated by statutory 1Ules, concept of "industry" to that extent stands
excluded'-Disengagement of daily wage employees from service cannot be
const1ued to be retrenchment under the Act-Concept of "retrenchment"
cannot be stretched to such an extent as to cover these employee~Since they
D are only daily wage employee and have no right to the posts, their disengage-
ment is not arbitrmy.
CIVIL APPELLATE JURISDICTION: Special Leave Petition (C)
No. 7957 of 1996.
E From the Judgment and Order dated 1.7.96 of the Patna High Court
in L.P.A. No. 1231 of 1995.
Ranjan Mukherjee for the Petitioners.
The following Order of the Court was delivtred :
F
Delay condoned.
This special leave petition arises from the judgment of the Division
Bench of the Patna High Court, made on 1.7.1996 in LPA No. 1213/95
G confirming the order of the learned single Judge in CWJC No. 2311/95.
The admitted position is that the petitioner No. 1 came to be ap-
pointed as Assistant, Petitioner No. 2 as Driver and Petitioner Nos. 3 to 5
as Peons on different dates, viz., on August 1, 1988, November 10, 1989,
May 31, 1987 and April 22, 1992. They were appointed in the Co-operative
H Training Institute, Deoghar by its Principal. They are admittedly daily wage
368
HIMANSHU KUMAR VIDYARTIII v. STATE 369
employees. Their services came to be terminated by the Principal. Calling A
that termination in question, they filed a writ petition in the High Court.
The main grievance of the petitioners before us is that termination of their
services is in violation of Section 25F of the Industrial Disputes Act, 1947.
The question for consideration, therefore, is : whether the petitioners can
be said to have been 'retrenched' within the meaning of Section 25-F of B
the Industrial Disputes Act? Every department of the Government cannot
be treated to be "industry". When the appointments are regulated by the
statutory rules, the concept of "industry" to that extent stands excluded.
Admittedly, they were not appointed to the posts in accordance with the
rules but were engaged on the basis of need of the work. They are
temporary employees working on daily wages. Under these circumstances, C
their disengagement from service cannot be construed to be a retrench-
ment under the Industrial Disputes Act. The concept of "retrenchment",
therefore, cannot be stretched to such an e>.1:ent as to cover these
employees. The learned counsel for the petitioners seeks to contend that
in the High Court, the petitioners did not contend that it is a case of D
retrenchment but termination of their services is arbitrary. Since they are
only daily-wage employees and have no right to the posts, their disengage-
ment is not arbitrary.
The special leave petition is accordingly dismissed.
R.P. Petition dismissed.
E
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