Holding

The burden of proof to establish that a workman has worked continuously for 240 days in the preceding year rests on the workman himself.

Summary

The Supreme Court examined an appeal by Ranip Nagar Palika challenging the reinstatement of several workmen who had been terminated in 1994. The workmen claimed they were regular employees who had continuously worked since 1991, invoking Section 25-F of the Industrial Disputes Act, 1947, which requires at least 240 days of service in the preceding year for protection against termination. The Labour Court, High Court, and a Division Bench had ordered reinstatement, holding that the workmen had completed the requisite service, but the employer argued that the burden of proving the 240 days lay with the employer. The Court clarified that the onus is on the workman to produce cogent evidence of continuous service, not on the employer, and noted that the lower courts had not properly examined the factual material. Consequently, the Supreme Court set aside the earlier orders and remitted the matter to the Labour Court for fresh determination of the workmen’s service continuity. The appeal was allowed.

Issues considered

The burden of proof under Section 25-F of the Industrial Disputes Act, 1947, as to whether a workman has completed 240 days of continuous service in the preceding year.
Whether the lower courts erred in placing the onus on the employer to disprove the workmen’s claim of continuous service.

Legislation cited

Industrial Disputes Act, 1947s. 25-F

Subjects

Industrial Disputes ActSection 25-Fburden of proofcontinuous servicetermination of employmentreinstatementlabour courtdaily wage workers

Judgment

--,._
A RANIP NAGAR PALIKA
v.
BABUJI GABHAJI THAKORE AND ORS.

NOVEMBER 23, 2007
B
(DR. ARlJIT PASAYAT AND P. SATHASIVAM, JJ.] ,
).

Industrial Disputes Act, 1947-s. 25-F-Termination of
workmen-Challenged as being in contravention of s. 25-F-Courts
c below directing their reinstatement holding that burden to prove non-
completion ofcontinuous 240 days service, was on the employer-On
appeal, held: Burden to prove continuous service for 240 days is on
the workman-Courts below have not considered the matter in proper
perspective-Hence, matter remitted to Labour Court-Evidence-
D Burden ofproof
A
The services of respondent-workmen were terminated by the
appellant-employer. Workmen challenged the same on the ground that
it was without following the procedure under s. 25-F of Industrial
E Disputes Act, 1947. They claimed that they were working since, 1991
continuously till their termination i.e. on 16.5.1994. Labour Court
directed their re-instatement with continuity of service. Single Judge
as well as Division Bench of High Court confirmed the Order ofLabour
Court.
F
In appeal to this Court appellant contended that in absence of plea
as well as finding by the Labour Court regarding completed 240 days
ofservice, High Court was not justified in holding that the Labour Court
concluded that the workmen had completed 240 days of service; that
the Courts below erroneously put the onus on the employer, to establish
G
that the workmen had not completed 240 days ofservice, while the same
is on the person who claimed to have rendered more than 240 days of
service.
----
456
H
RANIP NAGAR PALIKA v. BABUJI GABHAJI THAKORE 457

Allowing the appeal and remitting the matter to the Labour Court, A
the Court

HELD: 1. The burden of prooflies on the workman to show that
he had worked continuously for 240 days for the preceding one year
and it is for the workman to adduce evidence apart from examining B
himself to prove the factum of being in employment of the
employer. [Para 15] [463-G, H; 464-A]

Range Forest Officer v. Hadimani, [2002] 3 SCC 25; Essen Deinki
v. Rajiv Kumar, [2002] 8 SCC 400; Rajasthan State Ganganagar S Mills
Ltd. v. State of Rajasthan and Anr., [2004] 8 SCC 161; Municipal C
Corporation, Faridabadv. Siri Niwas, [2004] 8SCC195; MP. Electricity
Boardv. Hariram, [2004] 8 SCC 246; Manager, Reserve Bank ofIndia,
Bangalore v. S Mani and Ors., [2005] 5 SCC 100; Batala Cooperative
Sugar Mills Ltd. v. Sowaran Singh, [2005] 8 SCC 25; Surendranagar
District Panchayatv. Dehyabhai Amarsingh, (2005) 7 Supreme 307; RM D
Yellatti v. The Asst. Executive Engineer, [2006) 1 SCC 106; ONGC Ltd.
and Anr. v. Shyamal Chandra Bhowmik, [2006] 1 SCC 337 and
Surendranagar Distt. Panchayatv. Gangaben Laljibhai and Ors., [2006)
9 sec 132, relied on
E
-.' 2. The appellant-management had produced materials to show that
the claim of the respondent-workmen thatthey had worked from 1991
was patently wrong. In fact, finding has been recorded that one of the
respondents had worked since January, 1994 contrary to the claim of
having worked from 1991. There was need for factual adjudication on p
the basis of the materials adduced by the parties. That apparently has
not been done. Therefore the orders of the Labour Court, Single Judge
and Division Bench of the High Court are set aside and the matter is
remitted to the Labour Court to consider the matter afresh. It has to
specifically record a finding as to whether the claim of the workmen of G
__, continuance of service is acceptable. It has also to be decided as to
whether the workmen had completed 240 days ofservice. That decision
is vital to sec whether Section 25-F of the Act has any relevance.
[Paras 16and17) (464-A, B, C, DJ
H
458 SUPREME COURT REPORTS [2007] 12 S.C.R.

A CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4468 of
2005.
From the final Judgment and Order dated 28.4.2003 of the High
Court of Gujarat at Ahmedabad in LP.A. No. 424 of2003 No. 612000.
B Mahendra Anand, H.S. Parihar and Kuldeep S. Parihar for the
Appellant.
P.K. Manohar for the Respondents.
The Judgment of the Court was delivered by
c DR ARIJIT PASAYAT, J. 1. In the present appeal challenge is
to the order passed by a Division Bench of the Gujarat High Court
dismissing the Letters Patent Appeal filed by the appellant. In the Letters
Patent Appeal challenge was to the order passed by a learned Single
0 Judge who had dismissed the writ petition filed by the appellant.
2. A brief reference to the factual aspects would suffice.
3. Claim was made by the respondents to the effect that their services
were terminated without following the procedure prescribed under Section
E 25-F of the Industrial Disputes Act, 1947 (in short the 'Act'). It was their
case that they were employed on regular basis and, therefore, the
termination of service is illegal. In the claim petition they had averred that
they were working since 1991 and had worked continuously till there was
termination of service by an oral order on 16.5.1994. Appellant took the
F stand that the respondents were engaged as daily rated helpers. Their
appointments were not in terms of the recruitment rules and workers were
called for rendering services as and when required. It was therefore said
that the claim regarding continuance of service was mis-conceived. The
respondents only worked for a few days. In fact after November, 1993
G there was no engagement made as their services were not required. The
Labour Court, Ahmedabad by order dated 9. 7.1999 directed re-
instatement with continuity of service and 50% back wages. The order
was assailed before the High Court. It was contended that the respondents
were working as daily wagers and they had not rendered regular service.
H A learned Single judge of the High Court dismissed the writ petition holding
RANIP NAGAR PALIKA v. BABUJI GABHAJI THAKORE 459
'"\ _.,,- [PASAYAT,J.]
that each of the respondents had completed 240 days of service and, A
therefore, the order of the Labour Court was justified. As noted above,
writ appeal was dismissed.
4. Learned counsel for the appellant submitted that there was no
pleading that the respondents had completed 240 days of service. In fact
~- . B
_./ their claim in the claim petition was that they had rendered continuous
service without indicating any particulars. In any event, there was no finding
recorded by the Labour Court that they had completed 240 days of
service. Learned Single Judge therefore was not justified in holding that
the Labour Court had concluded that the concerned workmen had
completed 240 days of service. It was further submitted that all relevant
c
records were produced before the Labour Court which were lightly
brushed aside and conclusions were arrived at on conjectures by holding
that the claim of the present respondents was to be accepted.
5. It was further submitted that the onus is on the person who claims D
,,.\
to have rendered more than 240 days of service to establish it. The Labour
Court and the High Court erroneously held that it was for the employer
to establish that the claimants-workmen had not completed 240 days of
service
E
6. Learned counsel for the respondents on the other hand submitted
that after analyzing the factual position in detail the Labour Court and the
High Court have arrived at the correct conclusion.
7. In a large number of cases the position of law relating to the onus
+ to be discharged has been delineated. In Range Forest Officer v. S.T. F
Hadimani, [2002] 3 SCC 25, it was held as follows:
"2. In the instant case, dispute was referred to the Labour Court
that the respondent had worked for 4,40 days and his service had
been terminated without paying him any retrenchment
..,.__; compensation. The appellant herein did not accept this and
G

contended that the respondent had not worked for 240 days. The
Tribunal vide its award dated 10.8.1998 came to the conclusion
that the service had been terminated without giving retrenchment
compensation. In arriving at the conclusion that the respondent had
H
460 SUPREME COURT REPORTS [2007] 12 S.C.R.
--...,...._'
A worked for 240 days the Tribunal stated that the burden was on
the management to show that there was justification in termination
of the service and that the affidavit of the workman was sufficient
to prove that he had worked for 240 days in a year.
3. For the view we are taking, it is not necessary to go into the
B
question as to whether the appellant is an "industry" or not, though ._ ,.
reliance is placed on the decision ofthis Court in State ofGujarat
v. Pratamsingh Narsinh Parmar, [2001] 9 SCC 713. In our
opinion the Tribunal was not right in placing the onus on the
management without first determining on the basis of cogent
c evidence that the respondent had worked for more than 240 days
in the year pn.'Ceding his termination. It was the case of the claimant
that he had so worked but this claim was denied by the appellant.
It was then for the claimant to lead evidence to show that he had
in fact worked for 240 days in the year preceding his termination. •
D
Filing of an affidavit is only his own statement in his favour and ~

that cannot be regarded as sufficient evidence for any court or
tribunal to come to the conclusion that a workman had, in fact,
worked for 240 days in a year. No proof of receipt of salary or
wages for 240 days or order or record of appointment or
E
engagement for this period was produced by the workman. On
this ground alone, the award is liable to be set aside. However,
Mr. Hegde appearing for the Department states that the State is
really interested in getting the law settled and the respondent will
be given an employment on compassionate grounds on the same
F
terms as he was allegedly engaged prior to his termination, within
two months from today."
8. The said decision was followed in Essen Deinki v. Rajiv Kumar,
(20021 s sec 400.
G
9. In Rajasthan State Ganganagar S. Mills Ltd. v. State of .,__.
Rajasthan and Anr., [2004] 8 SCC 161, the position was again reiterated
in paragraph 6 as follows:
"It was the case of the workman that he had worked for more
H
RANIP NAGAR PALIKA v. BABUJI GABHAJI THAKORE 461
[PASAYAT,J.]
than 240 days in the year concerned. This claim was denied by A
the appellant. It was for the claimant to lead evidence to show that
he had in fact worked up to 240 days in the year preceding his
termination. He has filed an affidavit. It is only his own statement
which is in his favour and that cannot be regarded as sufficient
evidence for any Court or Tribunal to come to the conclusion that B
in fact the claimant had worked for 240 days in a year. These
aspects were highlighted in Range Forest Officer v. S. T.
Hadimani, [2002] 3 SCC 25. No proof of receipt of salary or
wages for 240 days or order or record in that regard was
produced. Mere non-production of the muster roll for a particular C
period was not sufficient for the Labour Court to hold that the
workman had worked for 240 days as claimed."

10. In Municipal Corporation, Faridabad v. Siri Niwas, [2004]
8 SCC 195, it was held that the burden was on the workman to show D
that he was working for more than 240 days in the preceding one year
prior to his alleged retrenchment. In MP. Electricity Board v. Hariram,
[2004] 8 sec 246, the position was again reiterated in paragraph 11 as
foITuws:
'The above burden having not been discharge<ll and the Labour E
Court having held so, in our opinion, the Industrial Court and the
High Court erred in basing an order of reinstatement solely on an
adverse inference drawn erroneously. At this stage it may be useful
to refer to a judgment of this Court in tht: case of Municipal
Corporation, Faridabad v. Siri NJwas, JT (2004) 7 SC 248 F
wherein this Court disagreed with the High Court's view of drawing
an adverse inference in regard to the non-production of certain
relevant documents. This is what this Court had to say in that
regard:
G
"A court oflaw even in a case where provisions of the Indian
Evidence Act apply, may presume or may not presume that if
a party despite possession of the best evidence had not
produced the same, it would have gone against his contentions.
The matter, however, would be different where despite H
462 SUPREME COURT REPORTS [2007) 12 S.C.R.

A direction by a court the evidence is withheld. Presumption as
to adverse inference for non-production of evidence is always
optional and one of the factors which is required to be taken
into consideration is the'background of facts involved in the
tis. The presumption, thus, is not obligatory because
B notwithstanding the intentional non-production, other
circumstances may exist upon which such intentional non-
production may be found to be justifiable on some reasonable
grounds. In the instant case, the Industrial Tribunal did not draw
any adverse inference against the appellant. It was within its
c jurisdiction to do so particularly having regard to the nature
of the evidence adduced by the respondent."
11. In Manager, Reserve Bank ofIndia, Bangalore v. S. Mani and
Ors., [2005] 5 SCC 100, a three-Judge Bench of this Court again
considered the matter and held that the initial burden of proof was on the
D ....
workman to show that he had completed 240 days of service. Tribunal's
view that the burden was on the employer was held to be erroneous. In )..

Batala Cooperative Sugar Mills Ltd. v. Sowaran Singh, [2005] 8 SCC
25 it was held as follows:
E "So far as the question of onus regarding working for more than
240 days is concerned, as observed by this Court in Range Forest
Officer v. S. T Hadimani, [2002] 3 SCC 25, the onus is on the
workman."

F
12. The position was examined in detail in Surendranagar District
Panchayat v. Dehyabhai Amarsingh, (2005) 7 Supreme 307, and the
view expressed in Range Forest Officer, Siri Niwas, MP. Electricity
Board cases (supra) was reiterated.
13. In R.M Yellatti v. The Asst. Executive Engineer, [2006] I
G SCC I06, the decisions referred to above were noted and it was held as
follows: .,_..
"Analyzing the above decisions of this court, it is clear that the
provisions of the Evidence Act in terms do not apply to the
H proceedings under section l 0 of the Industrial Disputes Act.
~
RANIP NAGAR PALIKA v. BABUJI GABHAJI THAKORE 463
[PASAYAT,J.]
~ However, applying general principles and on reading the aforestated A
judgments, we find that this court has repeatedly taken the view
that the burden of proof is on the claimant to show that he had
worked for 240 days in a given year. This burden is discharged
only upon the workman stepping in the witness box. This burden
is discharged upon the workman adducing cogent evidence, both B
oral and docurnentlli)'. In cases of termination of services of daily
"·_.J
waged earner, there will be no letter of appointment or termination.
There will also be no receipt or proof of payment. Thus in most
cases, the workman (claimant) can only call upon the employer to
produce before the court the nominal muster roll for the given c
period, the letter of appointment or termination, if any, the wage
register, the attendance register etc. Drawing of adverse inference
ultimately would depend thereafter on facts of each case. The
above decisions however make it clear that mere affidavits or self-
serving statements made by the claimant/workman will not suffice D
in the matter of discharge of the burden placed by law on the
~ workman to prove that he had worked for 240 days in a given
year. The above judgments further lay down that mere non-
production of muster rolls per se without any plea of suppression
by the claimant workman will not be the ground for the tribunal to E
draw an adverse inference against the management. Lastly, the
above judgments lay down the basic principle, namely, that the High
" Court under Article 226 of the Constitution will not interfere with
the concurrent findings of fact recorded by the labour court unless
they are perverse. This exercise will depend upon facts of each F
;_ case."

14. The above position was again reiterated in ONGC Ltd and Anr.
v. Shyamal Chandra Bhowmik, [2006] 1 SCC 337 and Surendranagar
Distt. Panchayat v. Gangaben Lalj"ibhai and Ors., [2006] 9 SCC 132.
G
15. It was held in all these cases that the burden of proof lies on the
>-._/-
workman to show that he had worked continuously for 240 days for the
preceding one year and it is for the workman to adduce evidence apart
from examining himself to prove the factum of being in employment of
H
464 SUPREME COURT REPORTS [2007] 12 S.C.R.

A the employer.
16. It is to be noted that the appellant had produced materials to
show that the claim of the respondents that they had worked from 1991
was patently wrong. In fact, finding has been recorded that one of the
B respondents had worked since January, 1994 contrary to the claim of
having worked from 1991. In view of the fact that the Labour Court and
the High Court have not considered the matter in the proper perspective
and the view expressed is contrary to the decision in several decisions
referred to above, the orders of the Labour Court and the High Court
cannot be sustained.
c
17. There was need for factual adjudication on the basis of the
materials adduced by the parties. That apparently has not been done. We
therefore set aside the orders of the Labour Court, learned Single Judge
and Division Bench of the High Court and remit the matter to the Labour
D Court to consider the matter afresh. It has to specifically record a finding
as to whether the claim of the workmen of continuance of service is
acceptable. It has also to be decided as to whether the workmen had
completed 240 days of service. That decision is vital to see whether
Section 25-F of the Act has any relevance.
E
18. The appeal is allowed with no order as to costs.
K.K.T. Appeal allowed.