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Supreme Court of India

M/S. CREATIVE GARMENTS LTDversusKASHIRAM VERMA

Citation
2023 INSC 243
Decided
16 March 2023
Disposal
Appeal(s) allowed

Holding

The Supreme Court set aside the Labour Court award and High Court order, holding that effective relief cannot be granted unless the workman's permanent address is furnished and the workman's conduct shows lack of interest in the employment.

Summary

The employer, M/s. Creative Garments Ltd., appealed against a Labour Court award that reinstated employee Kashiram Verma with back wages. The employee never reported for duty despite multiple communications, and his permanent address was never furnished; only a "care of Union" address was provided. The Supreme Court found that service of notice at the union address was ineffective and that relief cannot be granted without the workman's permanent address in the pleadings. It held that the employee's conduct demonstrated a lack of interest in the employment, rendering the award untenable. Consequently, the Court set aside both the Labour Court award and the High Court order, allowing the appeal. The judgment also directed all labour authorities to ensure that parties furnish their permanent addresses in future proceedings.

Issues considered

  • Whether an award of reinstatement and back wages can be upheld when the workman's permanent address is not furnished and service of notice is ineffective.
  • Whether the workman's failure to report for duty negates his entitlement to the relief awarded.
  • Whether furnishing the permanent address of a workman is a mandatory procedural requirement under the various labour statutes.

Legislation cited

Subjects

labour lawservice of noticepermanent addressreinstatementback wagesindustrial disputeprocedural requirementlabour codes

Judgment

958                      [2023]REPORTS
               SUPREME COURT    2 S.C.R. 958              [2023] 2 S.C.R.


A                    M/S. CREATIVE GARMENTS LTD.
                                       v.
                             KASHIRAM VERMA
                        (Civil Appeal No. 5758 of 2012)
B                              MARCH 16, 2023
              [ABHAY S. OKA AND RAJESH BINDAL, JJ.]

             Labour Laws: Labour dispute – Non-mentioning of the
      permanent address of the workman, addressed furnished is care of
C     Union, and as such efforts to serve him at the given address remained
      futile – Held: Effective relief can granted to a worker only if the
      permanent address of the workman is furnished in the pleadings –
      Issuance of directions to the authorities working under the various
      labour laws to take corrective measure – Parties to furnish their
D     permanent address – Even if the representative of the workman is
      appearing, he shall furnish permanent address of the workman as
      well – Mere mentioning through labour union or authorised
      representatives, who are sometimes union leaders or legal
      practitioners not sufficient – Service of notice of workman to be
      affected on the permanent address of the workman – On facts, the
E     employee did not furnish his own address but is through some Union
      – Management sent various communications by Registered Post/
      Courier requesting him to report for duty, but there was no response
      – Conduct of the employee itself establishes that he is no more
      interested in employment – Thus, the award passed by the labour
F     court directing reinstatement of the employee with continuity of
      service as upheld by the High Court, set aside – Judicial directions.

            CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5758
      of 2012.

G          From the Judgment and Order dated 10.06.2010 of the High Court
      of Bombay in AN No.781 of 2006 in WP No. 1607 of 2007.

            Ms. Sonal Gupta, M/s. Parekh & Co., Advs. for the Appellant.


H
                                      958
  M/S. CREATIVE GARMENTS LTD. v. KASHIRAM VERMA                                959


      The Judgment of the Court was delivered by                               A
      RAJESH BINDAL, J.
      1. The Management has filed the present appeal challenging the
order passed by the Division Bench of the High Court of Judicature at
Bombay dated 10.06.2010 vide which the order passed by the Single
Bench dated 06.07.2006 was upheld. As a consequence, the award of              B
the Labour Court was held to be valid. The Labour Court vide its award
dated 28.10.2005 had directed reinstatement of the respondent with
continuity of service from 08.12.1997 with full back wages.
       2. A perusal of the paper-book shows that the notice in the Petition
for Special Leave to Appeal was issued on 22.10.2010. As the respondent        C
remained unserved, fresh notice was directed to be issued on 13.12.2010.
Dasti service was also permitted through nearest civil court or trial court.
On 24.10.2011, this Court being not satisfied that service of the respondent
had been effected, directed for issuance of fresh notice subject to deposit
of ` 10,000/- to be paid to the respondent for his travelling expenses as      D
and when he enters appearance. Dasti service was also permitted. Fresh
notice was issued on 24.07.2011 as the service was not complete. As
per Office Report dated 14.12.2011 in terms of the affidavit filed by the
appellant, the service on the respondent was complete but he had not
put in appearance till date. Meaning thereby that he is not interested to
defend the present litigation.                                                 E

      3. A perusal of the award of the Labour Court shows that the
address of the respondent is through some Union and he had not furnished
his own address. A perusal of the order passed by the Single Bench of
High Court shows that the respondent workman was represented, hence
he knew about the challenge to the award of the Labour Court and also          F
dismissal of the Writ Petition.
       4. The Order dated 07.11.2006 passed by the Division Bench of
the High Court in the appeal filed by the Management against the order
passed by the Single Bench shows that the statement of the counsel for
the Management was recorded that the Management will reinstate the             G
workman and he shall be communicated accordingly so as to enable him
to report for duty. Challenge was to the award of the Labour Court only
to the extent of award of back-wages. The appeal was admitted.
Thereafter, the Management had sent various communications by
Registered Post/Courier on 08.11.2006, 10.11.2006 and 24.11.2006
                                                                               H
960             SUPREME COURT REPORTS                           [2023] 2 S.C.R.


A     requesting the respondent to report for duty. However, there was no
      response.
            5. Further, when the matter was taken up by the Division Bench
      of the High Court on 30.10.2007, the statement of counsel for the
      workman was recorded that he will report for duty on 05.11.2007 at
B     10:00 A.M. The order reads as under:
                   “1. The learned Counsel appearing for the Respondent
            No.1 states that the Respondent No.1 will report for work at
            Amir Industrial Estate, Sun Mill Compound, Lower Parel,
            Mumbai. The learned Counsel for the appellant states that if
C           the respondent No.1 comes to Amir Industrial Estate, Sun Mill
            Compound, Lower Parel, Mumbai, at 10.00 a.m. on 5.11.2007
            and meet Mr. S.K. Kedia, he will be permitted to join
            immediately. The statements are accepted. Put up on
            19.11.2007.”

D            6. The Management sent another letter to the workman on
      26.12.2007 specifically mentioning that his inaction to report for duty
      would amount to presumption that he is no more interested to join the
      duty. Request was also made to him to furnish his permanent address.
              7. When the matter was taken up for hearing, the learned counsel
E     for the appellant on instructions from his client submitted that the
      respondent has not reported for duty till date. Meaning thereby that he is
      no more interested in joining duty and must have been gainfully employed
      after leaving the job in question.
             8. Considering the aforesaid factual matrix, in our opinion the award
F     of the Labour Court granting back-wages and continuity in service to
      the respondent workman deserves to be set aside as he has not reported
      for duty despite the statement made by his counsel in Court on 30.10.2007.
      The present appeal cannot be kept pending as the conduct of the
      respondent itself establishes that he is no more interested in employment
      what to talk of back-wages.
G
            9. The appeal is accordingly allowed. The impugned order passed
      by the High Court and the award of the Labour Court are set aside.
            10. A sum of ` 10,000/- which was directed to be deposited by
      the appellant before this Court vide order dated 21.04.2011 be refunded
      back to the appellant.
H
  M/S. CREATIVE GARMENTS LTD. v. KASHIRAM VERMA                               961
                 [RAJESH BINDAL, J.]

      11. Before parting with the order, this Court would like to direct      A
the authorities working under the various labour laws to take some
corrective steps.
       12. It is a case in which permanent address of the workman has
not been mentioned. The address furnished is care of Union. All efforts
made to serve him at the given address remained futile. Finally, appellant    B
served the respondent and filed affidavit. The service was at the address
of the Union, which may not be interested to pursue the case on behalf
of the workman.
     13. Effective relief can be granted to a worker only if the
permanent address of the workman is furnished in the pleadings.               C
      14. Under section 15(2) and section 16 of the Payment of Wages
Act, 1936, if an application is filed by an individual, there is a specific
requirement of furnishing permanent address of the applicant as per
Form-A. If an application is to be filed by a group of persons all the
applicants are required to furnish their addresses as per Form-B annexed      D
to Payment of Wages (Procedure) Rules 1937.
       15. Under Workman Compensation Act 1923, when an application
is filed by a workman for compensation, he is required to furnish his
residential address while filing an application in Form–F (see Rule 20).
In cases of compensation for fatal accident a workman is required to          E
furnish his permanent address on Form-A (see Rule 6(1)) appended
with Workman Compensation Rules ,1924.
      16. Under Industrial Disputes Act, 1947, for initiating the
proceedings under the Act, mentioning of addresses of the parties to the
disputes is required as contained in Forms-I, J and K appended with           F
Industrial Dispute (Central) Rules, 1957.
      17. Under section 20(2) of Minimum Wages Act, 1948 if an
applicant files an application for payment of wages, he is required to
mention his residential address as contained in Form-VI framed under
the aforesaid Act.
                                                                              G
       18. Under Payment of Gratuity Act 1972, when an employee
makes an application for payment of Gratuity, he is required to mention
full address as per Form-I (see Rule 7(1)) appended with Payment of
Gratuity (Central) Rules 1972.
                                                                              H
962              SUPREME COURT REPORTS                           [2023] 2 S.C.R.


A            19. If any party approaches any authority for a relief, the first
      thing required to be mentioned is his complete address. Mentioning of
      address of the representative is secondary as someone may like to appear
      in person. Even in Civil Procedure Code, 1908, Order VI Rule 14A
      provides that in every pleading, the parties are required to furnish their
      complete addresses and if there is any change it is also required to be
B
      informed.
              20. Supreme Court Rules, Form-32 of the Supreme Court of India
      Handbook on Practice and Procedure and Office Procedure mentions
      that in every petition, the petitioner and respondent are required to furnish
      their complete addresses.
C
            21. To simplify labour laws and strengthening the protection
      available to workers, including unorganised workers in terms of statutory
      minimum wages, social security and healthcare of the workers. The
      Parliament has consolidated 29 labour laws under 4 category of Codes,
      namely, Wage Code, Social Security Code, Occupational Safety, Health
D     and Working Conditions Code and The Industrial Relations Code.
      Different existing statutes, as consolidated in four Codes, are as under:
            1.     Code on Wages, 2019
                    (i) The Payment of Wages Act, 1936;
E                   (ii) The Minimum Wages Act, 1948;
                    (iii)The Payment of Bonus Act, 1965;
                    (iv)The Equal Remuneration Act, 1976.
            2.     Occupational Safety, Health and Working Conditions
F                   Code, 2020
                    (i)     The Factories Act, 1948;
                    (ii)    The Mines Act, 1952;
                    (iii)   The Dock Workers (Safety, Health and Welfare) Act,
G                           1986;
                    (iv)    The Building and Other Construction Workers
                            (Regulation of Employment and Conditions of
                            Service) Act, 1996;
                    (v)     The Plantations Labour Act, 1951;
H
M/S. CREATIVE GARMENTS LTD. v. KASHIRAM VERMA                        963
               [RAJESH BINDAL, J.]

       (vi)    The Contract Labour (Regulation and Abolition) Act,   A
               1970;
       (vii)   The Inter-State Migrant Workmen (Regulation of
               Employment and Conditions of Service) Act, 1979;
       (viii) The Working Journalist and other Newspaper
              Employees (Conditions of Service and Miscellaneous     B
              Provision) Act, 1955;
       (ix)    The Working Journalist (Fixation of Rates of Wages)
               Act, 1958;
       (x)     The Motor Transport Workers Act, 1961;                C
       (xi)    The Sales Promotion Employees (Condition of
               Service) Act, 1976;
       (xii)   The Beedi and Cigar Workers (Conditions of
               Employment) Act, 1966;
                                                                     D
       (xiii) The Cine-Workers and Cinema Theatre Workers
              (Regulation of Employment) Act, 1981.
  3.   Industrial Relation Code, 2020
       (i)     The Trade Unions Act, 1926;
       (ii)    The Industrial Employment (Standing Orders) Act,      E
               1946;
       (iii)   The Industrial Disputes Act, 1947.
  4.   Code on Social Security, 2020
       (i)     The Employees’ Provident Funds and Miscellaneous      F
               Provisions Act, 1952;
       (ii)    The Employees’ State Insurance Act, 1948;
       (iii)   The Employees’ Compensation Act, 1923;
       (iv)    The Employment Exchanges (Compulsory                  G
               Notification of Vacancies) Act, 1959;
       (v)     The Maternity Benefit Act, 1961;
       (vi)    The Payment of Gratuity Act, 1972;
       (vii)   The Cine-workers Welfare Fund Act, 1981;
                                                                     H
964              SUPREME COURT REPORTS                          [2023] 2 S.C.R.


A                    (viii) The Building and Other Construction Worker’s
                            Welfare Cess Act 1996;
                     (ix)    The Unorganised Workers Social Security Act, 2008.
             22. The aforesaid Codes are yet to be enforced. With the
      enforcement of 4 Labour Codes, we are hopeful that in future, when
B     rules are framed, authorities will take care that parties to the dispute
      furnish their permanent addresses in the cases relating to labour law
      disputes.
             23. In future all the cases to be filed and in all the pending cases,
      the parties shall be required to furnish their permanent address(es). Even
C     if the representative of the workman is appearing, he shall furnish
      permanent address of the workman as well. Even in proceedings
      subsequent to first stage, it shall be mandatory to provide permanent
      address of the party for his service. Merely mentioning through Labour
      Union or authorised representatives, who are sometimes union leaders
D     or legal practitioners, will not be sufficient. Service of notice of workman
      will have to be effected on the permanent address of the workman.

      Nidhi Jain                                                    Appeal allowed.
      (Assisted by : Shashwat Jain, LCRA)

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