5976 GI/2026

(8589)

रजजस्ट्री सं. डी.एल. (एन) 04/0007/2003—05

REGD. NO. D. L. (N) 04/0007/2003—05

xxxGIDHxxx

xxxGIDExxx

प्राजधकार से प्रकाजित

PUBLISHED BY AUTHORITY

साप् ताजहक

WEEKLY

सं. 31]

नई ददल् ली, अगस्ट् त 9—अगस्ट् त 15, 2026, िजनवार/ श्रावण 18—श्रावण 24, 1948

No. 31]

NEW DELHI, AUGUST 9—AUGUST 15, 2026, SATURDAY/ SHRAVAN 18– SHRAVAN 24, 1948

इस भाग में जभन् न ृृ्‍ सं्‍ या दी जाती हज जजससे दक यह ृृथक संकलन के प ृ में रखा जा सके

Separate Paging is given to this Part in order that it may be filed as a separate compilation

भाग II—खण् ड 3—उृ-खण् ड (ii)

PART II—Section 3—Sub-section (ii)

भारत सरकार के मंत्रालयों (रक्षा मंत्रालय को छोड़कर) द्वारा जारी दकए गए सांजवजधक आदेि और अजधसूचनाएं

Statutory Orders and Notifications Issued by the Ministries of the Government of India

(Other than the Ministry of Defence)

संचार मंत्रालय

(डाक जवभाग)

नई ददल्ली, 22 twu, 2026

का.आ. 1691.— केन् र सरकार, राजभाषा (संघ के िासकीय प्रयोजनों के जलए प्रयोग) जनयम 1976 (यथा

संिोजधत 1987) के जनयम 10 के उृ जनयम (4) के अनुसरण में, डाक जवभाग के जनम् नजलजखत अधीनस्ट् थ कायालय, जजसके

80 प्रजतित से अजधक अजधकाररयों/कमलचाररयों ने जहन् दी का कायलसाधक ञानान प्राप् त कर जलया हज, को एतदद्वारा अजधसूजचत

करती हज:-

कायालय

(

),

डाक

कायालय,

- 462027

[फा. सं. ई-11017-1/2026-रा.भा.]

मनोज कुमार, उृ महाजनदेिक (प्रजिक्षण/राजभाषा)

सी.जी.-डी.एल.-सा.-16092026-276166

CG-DL-W-16092026-276166

सी.जी.-डी.एल.-सा.-16092026-276166

CG-DL-W-16092026-276166

8590

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

MINISTRY OF COMMUNICATIONS

(Department of Posts)

New Delhi, the 22nd June, 2026

S.O. 1691.— In Pursuance of sub rule (4) of Rule 10 of the Official Language (use for official Purposes of the

Union) Rules 1976 (as amended in 1987), the Central Government hereby notifies following Sub-ordinate office of the

Department of Posts, where more than 80% Officers/Officials have acquired the working knowledge of Hindi:-

Office of the General Manager (Finance)

Postal Accounts Office,

Bhopal - 462027

[F. No. E-11017-1/2026-OL]

Manoj Kumar, Deputy Director General (Training/OL)

नई दिल्ली, 22 िुलाई, 2026

का.आ. 1692.— केन् र सरकार, रािभाषा (संघ के िासकी प्र ोिनों के जलए प्र ोग) जन म 1976 ( ा

संिोजित 1987) के जन म 10 के उृ जन म (4) के अनुसरण में, डाक जवभाग के जनम् नजलज त अिीनस्ट् का ाल , जिसके

80 प्रजतित से अजिक अजिकारर ों/कमलचारर ों ने जिन् िी का का लसािक ञानान प्राप् त कर जल ा िज, को एतिद्वारा अजिसूजचत

करती िज:-

मु्‍ ृोस्ट्टमास्ट्टर िनरल का का ाल ,

िम्मू एवं कश्मीर सकलल,

श्रीनगर - 190 001,

[फा. सं. ई-11017-1/2026-रा.भा.]

मनोि कुमार, उृ मिाजनिेिक (प्रजिक्षण/रािभाषा)

New Delhi, the 22nd July, 2026

S.O. 1692.— In Pursuance of sub rule (4) of Rule 10 of the Official Language (use for official Purposes of the

Union) Rules 1976 (as amended in 1987), the Central Government hereby notifies following Sub-ordinate office of the

Department of Posts, where more than 80% Officers/Officials have acquired the working knowledge of Hindi:-

Office of the Chief Postmaster General,

Jammu & Kashmir Circle,

Srinagar- 190 001

[F. No. E-11017-1/2026-OL]

Manoj Kumar, Deputy Director General (Training/OL)

नई दिल्ली, 22 िुलाई, 2026

का.आ. 1693.— केन् र सरकार, रािभाषा (संघ के िासकी प्र ोिनों के जलए प्र ोग) जन म 1976 ( ा

संिोजित 1987) के जन म 10 के उृ जन म (4) के अनुसरण में, डाक जवभाग के जनम् नजलज त अिीनस्ट् का ाल , जिसके

80 प्रजतित से अजिक अजिकारर ों/कमलचारर ों ने जिन् िी का का लसािक ञानान प्राप् त कर जल ा िज, को एतिद्वारा अजिसूजचत

करती िज:-

का ाल ृोस्ट्टमास्ट्टर िनरल

बरेली ृररक्षेत्र,

बरेली- 243001,

[फा. सं. ई-11017-1/2026-रा.भा.]

मनोि कुमार, उृ मिाजनिेिक (प्रजिक्षण/रािभाषा)

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8591

New Delhi, the 22nd July, 2026

S.O. 1693.— In Pursuance of sub rule (4) of Rule 10 of the Official Language (use for official Purposes of the

Union) Rules 1976 (as amended in 1987), the Central Government hereby notifies following Sub-ordinate office of the

Department of Posts, where more than 80% Officers/Officials have acquired the working knowledge of Hindi:-

Office of the Postmaster General,

Bareilly Region,

Bareilly - 243001

[F. No. E-11017-1/2026-OL]

Manoj Kumar, Deputy Director General (Training/OL)

नई दिल्ली, 22 िुलाई, 2026

का.आ. 1694.— केन् र सरकार, रािभाषा (संघ के िासकी प्र ोिनों के जलए प्र ोग) जन म 1976 ( ा

संिोजित 1987) के जन म 10 के उृ जन म (4) के अनुसरण में, डाक जवभाग के जनम् नजलज त अिीनस्ट् का ाल , जिसके

80 प्रजतित से अजिक अजिकारर ों/कमलचारर ों ने जिन् िी का का लसािक ञानान प्राप् त कर जल ा िज, को एतिद्वारा अजिसूजचत

करती िज:-

का ाल अिीक्षक डाकघर,

जिवृुरी संभाग,

जिवृुरी- 473 551

[फा. सं. ई-11017-1/2026-रा.भा.]

मनोि कुमार, उृ मिाजनिेिक (प्रजिक्षण/रािभाषा)

New Delhi, the 22nd August, 2026

S.O. 1694.— In Pursuance of sub rule (4) of Rule 10 of the Official Language (use for official Purposes of

the Union) Rules 1976 (as amended in 1987), the Central Government hereby notifies following Sub-ordinate office of

the Department of Posts, where more than 80% Officers/Officials have acquired the working knowledge of Hindi:-

Office of the Superintendent of Post Offices

Shivpuri division,

Shivpuri – 473 551

[F. No. E-11017-1/2026-OL]

Manoj Kumar, Deputy Director General (Training/OL)

नई दिल्ली, 25 िुलाई, 2026

का.आ. 1695.— केन् र सरकार, रािभाषा (संघ के िासकी प्र ोिनों के जलए प्र ोग) जन म 1976 ( ा

संिोजित 1987) के जन म 10 के उृ जन म (4) के अनुसरण में, डाक जवभाग के जनम् नजलज त अिीनस्ट् का ाल , जिसके

80 प्रजतित से अजिक अजिकारर ों/कमलचारर ों ने जिन् िी का का लसािक ञानान प्राप् त कर जल ा िज, को एतिद्वारा अजिसूजचत

करती िज:-

का ाल अिीक्षक डाकघर,

मंडला संभाग,

मंडला - 481 661

[फा. सं. ई-11017-1/2026-रा.भा.]

मनोि कुमार, उृ मिाजनिेिक (प्रजिक्षण/रािभाषा)

8592

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

New Delhi, the 22nd July, 2026

S.O. 1695.— In Pursuance of sub rule (4) of Rule 10 of the Official Language (use for official Purposes of

the Union) Rules 1976 (as amended in 1987), the Central Government hereby notifies following Sub-ordinate office

of the Department of Posts, where more than 80% Officers/Officials have acquired the working knowledge of Hindi:-

Office of the Superintendent of Post Offices

Mandla division,

Mandla – 481 661

[F. No. E-11017-1/2026-OL]

Manoj Kumar, Deputy Director General (Training/OL)

नई दिल्ली, 22 िुलाई, 2026

का.आ. 1696.— केन् र सरकार, रािभाषा (संघ के िासकी प्र ोिनों के जलए प्र ोग) जन म 1976 ( ा

संिोजित 1987) के जन म 10 के उृ जन म (4) के अनुसरण में, डाक जवभाग के जनम् नजलज त अिीनस्ट् का ाल , जिसके

80 प्रजतित से अजिक अजिकारर ों/कमलचारर ों ने जिन् िी का का लसािक ञानान प्राप् त कर जल ा िज, को एतिद्वारा अजिसूजचत

करती िज:-

का ाल अिीक्षक डाकघर,

जवदििा संभाग,

जवदििा- 464 001

[फा. सं. ई-11017-1/2026-रा.भा.]

मनोि कुमार, उृ मिाजनिेिक (प्रजिक्षण/रािभाषा)

New Delhi, the 22nd August, 2026

S.O. 1696.— ……………. In Pursuance of sub rule (4) of Rule 10 of the Official Language (use for official

Purposes of the Union) Rules 1976 (as amended in 1987), the Central Government hereby notifies following Sub-

ordinate office of the Department of Posts, where more than 80% Officers/Officials have acquired the working

knowledge of Hindi:-

Office of the Superintendent of Post Offices

Vidisha division,

Vidisha - 464 001

[F. No. E-11017-1/2026-OL]

Manoj Kumar, Deputy Director General (Training/OL)

नई दिल्ली, 22 िुलाई, 2026

का.आ. 1697.— केन् र सरकार, रािभाषा (संघ के िासकी प्र ोिनों के जलए प्र ोग) जन म 1976 ( ा

संिोजित 1987) के जन म 10 के उृ जन म (4) के अनुसरण में, डाक जवभाग के जनम् नजलज त अिीनस्ट् का ाल , जिसके

80 प्रजतित से अजिक अजिकारर ों/कमलचारर ों ने जिन् िी का का लसािक ञानान प्राप् त कर जल ा िज, को एतिद्वारा अजिसूजचत

करती िज:-

का ाल अिीक्षक डाकघर,

सतना संभाग,

सतना – 485 001

[फा. सं. ई-11017-1/2026-रा.भा.]

मनोि कुमार, उृ मिाजनिेिक (प्रजिक्षण/रािभाषा)

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8593

New Delhi, the 22nd July, 2026

S.O. 1697.— In Pursuance of sub rule (4) of Rule 10 of the Official Language (use for official Purposes of

the Union) Rules 1976 (as amended in 1987), the Central Government hereby notifies following Sub-ordinate office

of the Department of Posts, where more than 80% Officers/Officials have acquired the working knowledge of Hindi:-

Office of the Superintendent of Post Offices

Satna division,

Satna – 485 001

[F. No. E-11017-1/2026-OL]

Manoj Kumar, Deputy Director General (Training/OL)

Je ,oa jkstxkj e=ky;

नई दिल्ली, 30 िुलाई, 2026

का.आ. 1698.— vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa

dsUnzh; ljdkj स्ट्टेट बैंक ऑफ इंजड ा ds izca/kr=] lac) fu;kstdks vkSj श्री जगरिा िंकर जतवारील ds chp vuqca/k esa

fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky; कानृूर ds iapkV (64/2013)

izdkf”kr djrh gSA

[la0 ,y-12012/125/2012-vkbZ vkj (ch-II)]

सलोनी, उृ जनिेिक

MINISTRY OF LABOUR & EMPLOYMENT

New Delhi, the 30th July, 2026

S.O. 1698.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 64/2013) of the Central Government Industrial Tribunal-cum-

Labour Court Kanpur as shown in the Annexure, in the industrial dispute between the management of State Bank

of India and Shri Girja Shanker Tiwaril.

[No. L-12012/125/2012-IR(B-II)]

SALONI, Deputy Director

THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT, KANPUR

ID Case No. 64 of 2013

Present ShriRajendra Prasad Srivastava, H.J.S. (Retd.)

Shri Girja Shanker Tiwaril,

S/o Shri Chhote Lal Tiwari,

C/o Shri O.P. Mathur,

117/K-36, Sarvodaya Nagar,

Kanpur (U.P.)- 208025.

…………….Workman

Vs.

(i) The General Manager,

State Bank of India,

MotiMahal, Hazratgaj,

Lucknow.

8594

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

(ii) The Zonal Manager,

State Bank of India,

Mall Road,

Kanpur (U.P.)

…………………Management

(JUDGMENT)

(Passed on this 24th day of April, 2026)

As per letter dated 16/05/2013 by the Government of India, Ministry of Labour, New Delhi, the reference has been

made to this Tribunal under Section-10 of Industrial Disputes Act, 1947 (in short the 'Act') as per Notification No. L-

12012/125/2012-IR(B-I) dt.16/05/2013. The dispute under reference relates to:

"Whether the action of the management of State Bank of India in terminating the services of Shri Girja

Shanker Tiwari S/o Shri Chhote Lal Tiwari workman with effect from 01.05.1988 and not considering his

name for reemployment while reemploying others including the recruitment of fresh hands is just fair &

legal? If not, to what relief the workman concerned is entitled to?"

Claimant/workman Girja Shanker Tiwari (hereinafter stated as the claimant) has filed the statement of claim with

averments which may be concisely stated as hereunder:

(I) Claimant/applicant was employed under the Zonal Office, State Bank Of India Kanpur in Gwaltoli

Branch, Kanpur in subordinate cadre. The service of the applicant was terminated on 01.05.1988 in violation

of the provisions of Industrial disputes Act 1947. (Central) After the termination of the service of the

applicant new hands have been employed in place of the applicant in violation of Section 25 H of the

Industrial Disputes Act 1947.

(II) The action of the employer in terminating the services of the applicant is illegal and is unfair labour

practice because the applicant was working on the permanent post, but after termination of the applicant new

hands had been employed. This is also against the principles of natural justice.

(III) The employer has done this type of unfair labour practice and illegal work and exploitation i.e. engaging

one workman and terminating his service after few days and then again engaging another person and again

terminating his services is being done with hundreds of persons. The applicant along with number of such

other victimised persons started agitation by staging Dharna, demonstrations etc. against the illegal, unfair

and unjust action of the State Bank of India.

(IV) Thereafter, due to protest of the workmen, the State Bank of India decided to hold tests/interview so that

regular and permanent appointment may be given to workmen who have already worked in the Bank.

(V) The action of the Bank in holding test/interview was illegal because under the provisions of the

Industrial Disputes Act 1947 the applicant was a retrenched employee and he was to be given appointment in

the Bank not on the basis of any test/interview. But directly by the Bank as provided under Section 25 H of

the Industrial Disputes Act 1947.

(VI) The bank invited applications through advertisements in newspaper for giving permanent appointment

in the Bank. The applicant also applied and he appeared in the interview held in August 1991. The applicant

passed in the interview The Bank for illmotive and malafide reasons did not give permanent appointment to

the applicant. It is submitted that the intention of the Bank was not fair through out and they wanted to get

rid, by deceiving, the applicant and other workmen as such instead of giving appointment to the applicant.

the Bank kept the name of the applicant in the waiting list. The Bank for malafide reason and unfair labour

practice did not inform anything to the applicant nor published the waiting list in the news papers or

otherwise. However from the enquiries it came to the knowledge of the applicant that I have passed in the

interview and my name was in within 20 of the waiting list for giving permanent appointment in the Bank. It

is requested that the Hon'ble Tribunal be pleased to summon the waiting of 1991 from the Bank so that

justices may be done.

(VII) Out of aforesaid waiting list of 1991 all most all the candidates have been appointed by the Bank but

the Bank has not given appointment to the applicant. This is clearly unfair labour practice and illegal action

of the Bank and it is also against the principles of natural justices.

(VIII) The Bank has hided all the information regarding result of interview, serial number in the waiting list,

how many persons have been appointed etc. from the workmen so that the workmen may not get

employment in the Bank. But it has come to the knowledge that the applicant's name was within 20 in the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8595

said waiting list. The Bank has appointed more than 200 persons who are junior in the list and new hands

than applicant. The action of the Bank is illegal and unjust by all means.

(IX) The termination of the applicant is retrenchment as defined in the Industrial Disputes Act 1947. The

employer has not paid notice pay and retrenchment compensation. As such the termination of the applicant is

illegal and unjust and the applicant is entitled to the reinstatement with continuity of service and full back

wages.

(X) After the termination of the applicant so many new hand have been appointed by the Bank. As such the

action of the Bank is illegal and unjust and the applicant is entitled to be reinstated with continuity of service

and full back wages.

(XI) The name of the applicant was within 20 of the waiting list of 1991. The applicant has not been given

appointment but all most all the persons from the said waiting list have been appointed. As such the action of

the Bank is illegal and unjust and the applicant is entitled to be reinstated with continuity of service and full

back wages.

Respondent side has submitted the written statement with averments which may be summarized as stated below:

(i)

It is essential to mention that to abuse/misuse of the provisions of the I. D. Act 1947[14 of 1947]

instant industrial dispute has been raised by the applicant regarding his alleged termination from

01.05.1998, which is not tenable in the eyes of law. On this alone ground case is liable to be

dismissed at the very outset by the Hon'ble Tribunal.

(ii)

The alleged disengagement being of 1988&23 years have passed since then the industrial dispute

cannot be said to have survived & a stale alleged dispute can not be allowed be raised now.

(iii)

It is specific to state that to create illegal pressure upon the bank's management, General Manager,

Lucknow as well as Zonal Manager, Kanpur have knowingly been made parties by the claimant in

the present dispute whereas claimant never worked for a day in both offices. It is made clear that

relationship of employer & employee does not exist between the rival parties. In the light of above

given facts claim is legally not maintainable & is deserved to be rejected forthwith by the Hon'ble

court.

(iv)

It is clearly submitted that present case is out of ambit of continuous service as defined in section 25

B of the act because applicant never pleaded before the A.L.C. [C] that he had worked for 240 days

at Gwaltoli Branch, Kanpur therefore provisions of section 25 F do not attract in the instant matter.

(v)

It is necessary to add that claimant was not engaged in the bank against any post. To enrich our

contention it is narrated here that there is a prescribed procedure for appointment in the respondent

bank, which is evident from fact that appointment letter was not filed by the applicant along with

his claim statement before the Hon'ble Court.

(vi)

It is mentioned here that panels of suitable persons were prepared by the selection committee after

conducting interviews of eligible persons & list of successful persons was published at notice board

of the bank at relevant point of time. It has to be informed that thereafter a settlement on 09.06.95

was entered into between above referred parties before Shri A. Prabhakar Regional Labour

Commissioner [Central], Hyderabad that panels of temporary employees & daily wagers will be

kept alive upto March 1997 & after lapse of said date claim of persons empanelled is not tenable in

the eyes of law as settled by Apex Court as well as various High Court.

(vii)

In reply to assertions of paras 12 & 13 of the claim it is submitted here that claimant was never

appointed in bank hence question of his alleged retrenchment does not arise. It is submitted that

even if the self serving allegation of the claimant is accepted that he has worked and that

subsequently during the process of giving chance of absorption, he was invited for interview, the

said process of holding interview conducted in terms of settlements constitutes compliance of

section 25 H of the I.D. Act as has been held by the Hon'ble Supteme Court in Regional Manager

S.B.I. V. Rakesh Kumar Tiwari AIR 2006 S.C. 839. Also even if the self serving statement of the

claimant is further accepted that his name was included in the panel of candidates wait listed for

appointment against future vacancies but he is not found entitled to get claimed relief in the light of

view taken by Hon'ble Apex Court that wait listed candidates can not have a valid claim to any post

upon the lapse of the wait list panel.

(viii)

In claim statement is mere reiterations. It is clearly submitted that applicant is not entitled to get

relief claimed from the hon'ble court. In the light of afore-mentioned true facts claim has no force of

law & on the face of given reply case may be turned down by the Hon'ble Tribunal.

After that applicant filed rejoinder against written statement filed by opposite party is read as under:

8596

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

1. The contents of Para No. 1 of the written statement of the employer is wrong, baseless and

against the provision of Law hence are not admitted. In reply it is submitted that the services of the

applicant has been illegally and unjustly terminated by the employer. The termination of the

applicant is retrenchment. The employer has appointed new hands but has not given chance to the

applicant as required under section 25 H of the Industrial Dispute Act 1947. The Labour Law is for

the welfare and protection from the exploitation of workmen i.e. weaker section of the society.

Therefore the law makers, i.e the Parliament of the country, keeping all these facts and

circumstances in mind and past experienced did not mention any time limit for reemployment of

retrenched workers in section 25 H of the Industrial Dispute Act 1947. In view of these submissions

no one including all courts of the country can and should not impose any time limit for raising such

dispute in the name of old cases or belated case. As Such the objection is baseless and misconceived

and is liable to be rejected.

2. The contents of Para No. 6 of the written statement of the employer are wrong, baseless and

misconceived hence are not admitted. In reply it is submitted that the applicant was engaged against

a clear post. The Opposite Party Bank is a very big exploiter, The Opposite party engaged the

applicant and after termination engaged another person. Thus the Bank has engaged number of

persons. The action of the employer is unfair labour practices, malafide and exploitation of poor

workers and action of the employer is to be condemned.

3. The contents of Para No. 12 of the written statement as are stated are not correct hence are not

admitted. In reply it is submitted that the settlement at Hyderabad has no concerned or meaning

with Kanpur employees. It is also submitted that the applicant was never member of any union or

federation as such the agreement signed by the so called union or federation is not binding upon the

applicant. This is a fraud done by the Bank to befool the employees who were demanding

reinstatement as per law. The citations of the rulings are not mentioned in the para under reply as

such no proper comments can be offered on it. However it is submitted that if full facts of the case

before the Hon'ble court were submitted the decision must have been in favour of the employees.

Applicant filed some documents which are read as under:

1. Certificate issued by the Employer.

2. Certificate issued by the employer.

3. List of employees employed after my termination.

4. Employer application dated 18.5.1996

5. Proof of agitation, paper cuttings 12.

In rebuttal opposite party some documents which are read as under:

1. Copy of settlement dated 17.11.1987.

2. Copy of settlement dated 27.10.1988.

3. Copy of settlement dated 09.01.1991.

4. Copy of settlement dated 09.06.1995.

Main question in this reference is that Whether the action of the management of State Bank of India terminating the

services of Shri Girja Shanker Tiwari S/o Shri Chhote Lal Tiwari workman with effect from 01.05.1988 and not

considering his name for reemployment while reemploying others including the recruitment of fresh hands is just fair

& legal? If not, to what relief the workman concerned is entitled to?

Applicant said that he was employed in opposite party bank. His service was terminated on 01.05.1988 against the

provision of Industrial Dispute Act and against the termination of the service of the applicant new hands have been

employed in place of applicant. This is unfair labour practice because applicant was working on the permanent post.

Due to protest of workmen, opposite party decided to hold test/interview so that regular and permanent appointment

may be given to workmen who have already worked in the Bank. The applicant was a retrenched employee and he

was to be given appointment in the Bank not on the basis of any test/interview as provided ID Act. The applicant

applied and he appeared in the interview held in August 1991. The applicant passed in the interview but due to

illmotive and malafide reasons bank did not give permanent appointment to the applicant. The bank kept the name of

the applicant in the waiting list. The bank for malafide reason and unfair labour practice did not inform anything to

the applicant nor published the waiting list in the news papers or otherwise.

Against that opposite party said in our written statement that the alleged disengagement being of 1988 and after 23

years the industrial dispute cannot be raised. It is also made clear that relationship of employer and employee does not

exist between the rival parties and this case is out of ambit of continuous service as defined in section 25 B of the Act.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8597

The applicant was not engaged in the bank against any post and never appointed in the bank hence the question of his

alleged retrenchment does not arise. It is also mentioned here that panels of suitable persons were prepared by the

selection committee after conducting interviews of eligible persons and list of successful persons was published at

notice board of the bank.

Now the main question is applicant is working on permanent post as stated in para 2 of the our claim statement.

Applicant filed by paper number 10/2 certificate issued by the employer in this certificate the applicant worked in the

bank as Temporary Messenger on daily wages from 03.02.1987 to 22.05.1987 for 89 days only. In paper number 10/3

certificate issued by the employer in this certificate the applicant worked in the bank as a casual labour for 89 days

from 02.02.1988 to 30.04.1988 and in paper number 10/4 list of employees employed after my termination i.e. Ram

Chandra, Ajay Kumar, Rakesh Kumar and Satish Chandra.

To decide above question the documentary/oral evidence of the parties are important.

On perusal of the record it emerged out that the applicant filed an applicant for summoning of documents which are as

under:

1. Vouchers of three years relating to newly appointed employees after terminating the service of worker.

2. The result of interview held in 1991 in which applicant had appeared along with its waiting list.

3. Seniority list of sub staff with the date of appointment under SBI Zone Office, Kanpur.

4. Copy of application dated 18.05.1996 filed by employer in ID case no. 03 of 1987.

In rebuttal written objection has been filed by opposite party bank.

On 24.04.2018 this Tribunal has passed an order which is read as under:

I have heard parties auth. Representatives on the application of the worker for summoning documents from

the management and its objection filed by the management.

The reference in the Industrial Dispute is with regard to the termination of the worker and for not

considering his name for re-employment while employing others.

Worker has requested to summon vouchers of three years relating to newly appointed employees after

terminating the service of worker. The prayer cannot be allowed as worker has not named any newly

appointed person whose voucher is requested.

Worker has also requested to summon the result of the interview held in 1991 in which worker had appeared

along with its waiting list. A.R. for the management admitted that the list is available with them.

Likewise prayer for summoning seniority list of sub staff with the date of appointment under SBI Zone Office

Kanpur cannot be allowed as it is not relevant for the disposal of the case.

Worker has also requested to summon copy of application dated 18.05.96 filed by employer in ID case no.

3/87. This prayer of worker cannot be allowed as worker may obtain certificate copy of it and can file in this

case.

For the reasons given above the application of the worker is partly allowed and the management is directed

to file the result of interview held in 1991 along with waiting list as prayed in Para 4 of the application.

In compliance of the order dated 24.04.2018 passed by this Tribunal, opposite party filed an affidavit along with

office order/messenger report with specific contention that result of interview as well as wait list prepared in year

1991 could not be located or traced even after best efforts of concerned staff, as more than 27 years have been lapsed

and H.R. section premises, where interviews were conducted, had been transferred on different places in different

point of time during the intervening period.

The applicant examined himself as W.W.1 in our chief examination he supported our claim statement, and in para 2

said that after the completion of the all formalities he appointed in sub ordinate cadre for permanent post. Further he

said as stated in our claim statement. In our cross-examination he said that I did not issue any letter of protest to SBI

Gwaltoli Branch after my termination on 01.05.1988. I was born 01.01.1969, the witness shows his Adhar card, Pan

card and Driving License showing his date of birth as 01.01.1969. I was engaged as a casual labour. I can produce

original of the said certificate issued by Branch Manager on 31.05.1988. I have not mentioned that I worked for 240

days in preceding Twelve months prior to termination on 01.05.1988. My attendance was not recorded in the

attendance register of other SBI staff. My wages were paid through Bankers Cheque. I was not given wages for

Sunday and other holidays except for 15th August and 26th January. I have not mentioned that after my termination on

01.05.1988 Ram Chandra, Ajay Kumar and Satish Chandra were engaged. I have not filed any document regarding

engagement of those persons by O.P. I did not come across any notification issued for reengagement of terminated

workmen by the Bank. No appointment letter was issued to me before my engagement. I did not come across any

8598

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

news item that post of Messenger in SBI Gwaltoli Branch was lying vacant before my engagement. No call letter for

interview was received by me. I did not see the list of successful candidates. I did not file any application form prior

to appearing in the interview.

Applicant said in our claim statement in para 2 and in our chief examination of para 2 that applicant was working on

permanent post and in our chief examination of para 2 again repeated above. He also said that after complying of all

formalities he was appointed but as per his documentary evidence which is filed by applicant as mentioned above ‘the

applicant was appointed as temporary messenger for daily wages from 03.02.1987 to 22.05.1987 for 89 days.

Further as his documentary evidence ‘he worked as a casual labour for 89 days from 02.02.1988 to 30.04.1988’.

In our cross-examination as mentioned above he said that I do agree in the certificate dated 31.05.1988 it is stated I

was engaged as a casual labour hence applicant admitted that he was engaged as casual labour as shown in his above

certificates.

Now as the question of work 240 days applicant, applicant said in our cross-examination of page 2, I have not

mentioned that I worked for 240 days in previous twelve months prior to his termination on 01.05.1988. The applicant

is not mentioned in his claim statement that he worked for 240 days as he said in our cross-examination above. And

other worked concerned the applicant said my attendance was not recorded the attendance register of other SBI staff.

My wages were paid through Bankers Cheque. I was not given wages for Sunday and other holidays except for 15th

August and 26th January. I have not mentioned that after my termination on 01.05.1988 Ram Chandra, Ajay Kumar,

Rakesh Kumar and Satish Chandra were engaged. I have not filed any documents regarding engagement of those

persons. Hence applicant is admitted that reengagement of above persons not mentioned in his claim statement. No

appointment letter was issued to me before my engagement. No call letter interview was received by me. I did not see

the list of successful candidates. I did not file any application form prior to appearing in the interview.

Applicant said in our claim statement as mentioned above that he is working on a permanent post and further he said

he was retrenched employee and he also applied and appeared in the interview held in August, 1991 but he have not

filed any documents as interview letter. He said he was working on the permanent post but he have no any

appointment letter, pay slip etc. which shows that he was permanent employee as stated in his claim statement. He

never seen the list of successful candidates.

Opposite party is a nationalised bank there is procedure of appointment in all cadre. After adopting above procedure

opposite party bank appoint any person as per criteria.

The applicant said that there is violation of section 25-H of the Act. Section 25-H is said that:

25-H. Re-employment of retrenched workmen- Where any workmen are retrenched and the employer

proposes to take into his employ any persons, he shall, in such manner as may be prescribed, give an

opportunity to the retrenched workmen who are citizens of India to offer themselves for re-employment, and

such retrenched workmen] who offer themselves for re-employment shall have preference over other

persons.

But there is no any evidence that opposite party doing violation of section 25-H of the Act. One side applicant said

that he was working on permanent post and he further said he was retrenched employee. He never worked in any

calendar year for 240 day as he admitted.

As per the question of benefits of Section 25-B of the Act which is as read as under:

[25-B. Definition of continuous service- For the purpose of this Chapter-

(1) a workmen shall be said to be in continuous service for a period if he is, for that period, in uninterrupted

service, including service which may be interrupted on account of sickness or authorised leave or an

accident or a strike which is not illegal, or a lock-out or a cessation of work which is not due to any fault on

the part of the workman; [25-B. Definition of continuous service

(2) where a workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer-

(a) for a period of one year, if the workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less than-

(i) one hundred and ninety days in the case of a workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

(b) for a period of six months, if the workman, during a period of six calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less than-

(i) ninety-five days, in the case of a workman employed below ground in a mine; and

(ii) one hundred and twenty days, in any other case.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8599

Now the question whether the applicant is employee of opposite party Bank. As per the question of the employer and

workman in the ID Act, there is a workman definition in section 2 (s) is read as under:

"workman" means any person (including an apprentice) employed in any industry to do any manual,

unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms

of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an

industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection

with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that

dispute, but does not include any such person-

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy

Act, 1957 (62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee of a prison, or

(iii) who is employed mainly in a managerial or administrative capacity, or

(iv) who, being employed in a supervisory capacity, draws wages exceeding [one thousand rupees] per

menses or exercises, either by the nature of the duties attached to the office or by reason of the powers vested

in him, functions mainly of a managerial nature.

And employer definition is given in section 2 (g) is read as under:

“employer” means-

(i) in relation to an industry carried on by or under the authority of any department of '[the Central

Government or a State Government] the authority prescribed in this behalf, or where no authority is

prescribed, the head of the department;

(ii) in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that

authority;

In view of the above, the applicant has failed to prove the existence of a valid employer-employee relationship or the

completion of 240 days of service. Therefore, the action of the Management in ceasing the engagement of the

applicant is held to be just, proper, and legal.

The claim of the applicant is hereby dismissed. The applicant is not entitled to any relief of reinstatement, back

wages, or compensation.

Accordingly, the reference is answered in the negative. The claimant is not entitled to any relief. A 'Nil' Award is

hereby passed.

Parties are left to bear their respective costs.

Date: 24.04.2026

RAJENDRA PRASAD SRIVASTAVA, Presiding Officer

नई दिल्ली, 2 twu, 2026

का.आ. 1699.— औद्योजगक fookn vf/kfu;e 1947 (a1947 dk 14 ) dh /kkjk 17 ds vuqlj.k esa dsUnzh; ljdkj

Hkkjrh; LVsV cSad ds izca/kr=] lac) fu;kstdks vkSj muds deZdkjks ds chp vuqca/k esa fufnZ’V औद्योजगक fookn esa

dsUnzh; ljdkj औद्योजगक vf/kdj.k@Je U;k;ky; gSnjkckn ds iapkV (a48/2003) izdkf”kr djrh gSA

[la. ,y - 12025/01/2026- vkbZ vkj (ch-I)-146]

सलोनी, उृ जनिेिक

New Delhi, the 2nd June, 2026

S.O. 1699.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref.48/2003) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

Hyderabad as shown in the Annexure, in the industrial dispute between the management of State Bank of

India and their workmen.

[No. L-12025/01/2026- IR(B-I)-146]

SALONI, Deputy Director

8600

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

In The Central Government Industrial Tribunal Cum Labour Court At Hyderabad

Present: Sri IRFAN QAMAR

Presiding Officer

Dated the 16th day of April, 2026

INDUSTRIAL DISPUTE L.C.No. 48/2003

[Old ID No. 4/1999 of Labour Court, Guntur]

Between:

Sri Gollamudi Adam,

S/o Subba Rao,

Old Ponur,

Ward No.25,

Murthy Mahal,

Ponnur. Guntur District.

… Petitioner

And

1.

The Branch Manager,

State Bank of India,

Ponnur Village & Mandalam,

Guntur District.

2.

The Chief General Manager,

Local Head Office,

State Bank of India, Koti,

Bank Street,

Hyderabad.

…..Respondents

Appearances:

For the Petitioner :

Sri Macherla Rangaiah, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Gollamudi Adam, who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit. Earlier Petitioner

has filed this dispute before the Labour Court, Guntur for adjudication and later the same has been transferred to this

Tribunal bearing ID No. 4/1999, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated

18.10.2001 and registered, numbered in this Tribunal as LC No. 48/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8601

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. AIl these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.2019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement is that the

Petitioner herein was engaged by the Respondent Bank—State Bank of India—as a Messenger (temporary employee).

The Petitioner have joined the service of the Respondent Bank and worked from 1987 to 1997 and rendered

unblemished service spreading over a period of about 10 years. It is submitted that the services of the Petitioner were

terminated with verbal orders dt. 31.03.1997 without assigning any valid reasons. But the Respondent has retained

Petitioner’s juniors in service. The Respondent has failed to take the prior permission from the government for his

retrenchment. It is submitted that he could not secure any alternative employment till date inspite of his best efforts.

It is submitted that there is sufficient work with the Respondent and extending the opportunities to others denying the

Petitioner is unjust and contrary to law. Hence, the action of the Respondent is not justified. Therefore, it is prayed

to grant the relief of reinstatement with full back wages and all attendant benefits.

4.

The Respondent Bank contends that the reference made is untenable under the Industrial Disputes Act, 1947

as the Bank temporarily engaged subordinate staff—messengers, sweepers, etc.—strictly on a need-based, ad hoc

basis to ensure uninterrupted operations to address staff shortages due to leave vacancies and constraints imposed by

the Government of India and RBI on hiring.

5.

It is submitted that the All India State Bank of India Staff Federation which represents majority of the

employees in the State Bank of India comprising about 98% of the work force as its' members espoused the cause of

temporary employees who have put in less than 240 days of temporary service in 12 calendar months in the bank and

who were ineligible for any protection under Industrial Disputes Act, 1947 to give a chance for being considered for

absorption and permanent appointments. Various discussions were held to resolve the said issue, resulting in five

settlement agreements between the Bank and the Workmen.

6.

The first settlement dated 17.11.1987 (under Sec. 2(p) r/w Sec. 18(1) of the ID Act) categorized temporary

employees and provided for consideration of permanent absorption against vacancies between 1987–1991. The

second settlement dated 16.07.1988 extended this period to 1987–1992. The third settlement dated 27.10.1988

reaffirmed consideration of vacancies arising from 1988–1992. Following these, the Government of India issued

8602

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

recruitment guidelines on 16.08.1990, recommending settlement-based absorption for temporary employees with

more than 240 days of service in a 12-month block. For those with fewer days, the guidelines allowed for discretion-

based conciliation.

7.

Despite this, the Bank, in a liberal approach, considered even those with less than 90 days' service and those

employed since 1975. However, para 6(k) of the approach paper clarified that this would be a one-time exercise

resolving all past claims. Subsequently, the fourth settlement dated 09.01.1991 extended panel validity to 1994, with

daily wagers considered for 1995–1996 vacancies. It is submitted that Zone-wise panels (1989 for temporary

employees and 1992 for daily wagers) were also created, listing candidates in descending order of service from

01.07.1975 to 31.07.1988.

8.

The Federation also sought implementation through the Regional Labour Commissioner (Central), resulting

in a conciliation agreement on 09.02.1995. This led to the fifth settlement dated 30.07.1996. Finally, on 27.02.1997, a

Memorandum of Understanding recorded that 403 messengerial vacancies were identified and would be filled from

the 1989 panel. Both panels were agreed to lapse on 31.03.1997. Thus, the Workman, who served less than 240 days

in any 12-month block during the reference period, has no legal claim outside these settlements.

9.

It is further argued that the Workman’s case has already been considered under the five settlements. The

settlements were time-bound and binding on both parties, hence, the Bank was not obligated to absorb all empanelled

candidates. Sustaining panels beyond 31.03.1997 would contradict the settlements and constitutional principles

(Articles 14 & 16), amounting to backdoor regularization.

10.

The Hon’ble High Court in WP No.12964/94 has affirmed that such settlements are binding and temporary

service does not create a right to regularization unless the Workman can show violation of a specific settlement term,

which is not the case here. The Hon'ble High Court in WP No.12964/94, held as follows,

"It is needless to state that the settlement arrived at between the All India State Bank of India Staff Federation

which, is the majority union and the bank Management is binding on the Workmen also. It is not at all the case

of the Workman that any of the terms of the settlement has been violated by the bank's Management. If the

Workman had worked in the bank on part-time basis before 31.5.94, that itself would not vest in him a right to

claim that his services should be regularized on permanent basis against a full time cadre post. The claim put

forth by the Workman in the present petition is therefore misconceived and not tenable. However, it is open to

the Workman to claim any right which flows from the settlement between the union and the bank Management.

As already pointed out that it is not the grievance of the Workman that some right which has flown from the

settlement in favour of the Workman has been denied by the bank Management. Therefore, I do not find any

ground, let alone substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails

and is accordingly dismissed. No costs."

11.

Hence, the Workman’s claim was held misconceived. Furthermore, if the panels were not allowed to lapse, it

would undermine open recruitment processes, violating constitutional rights of other eligible candidates under

Articles 14 and 16 of the Constitution as well as contrary to the settlements.

12.

Similarly placed ex-temporary employees approached the High Court via WP No. 9206/1995. Though

allowed by the Single Judge, the Division Bench reversed the decision in WA No. 86/1998. The Supreme Court

subsequently dismissed SLP Nos. 11886-11888/1998, making the original judgment irrelevant.

13.

The Workman (WW1) filed and relied on documents Ex.W1 to W3, including appointment letters, interview

letters, and service certificates showing employment across various periods. The Respondent examined MW1, Sri

K. Chandra Sekhar Goud, and produced 12 documents (Ex.M1–M12), including all five settlements, panel details,

and judgments of the Hon’ble High Court and Supreme Court, conclusively supporting the Bank’s position.

14.

The Workman also cited various judicial precedents which shall be addressed in the relevant portion of

this Award.

15.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

16.

On the basis of pleadings and submissions made by the Learned Counsel for both the parties, following

points arise for determination in the industrial dispute :-

I.

Whether the action of State Bank of India, Local Head Office, Hyderabad in terminating the

services of Workman Sri Gollamudi Adam, a Temporary/Messenger with effect from 31.3.1997 is

justified?

II.

To what relief if any the Workman is entitled for?

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8603

Findings:-

17.

Issue No.I:- The Workman alleged that Respondent has terminated his services by oral order on 31.3.1997

without issuing any notice or paying any salary or compensation in lieu thereof illegally. Further, he alleges that he

has been terminated from service in violation of provision contained under Section 25 F of I.D. Act, 1947 and same

is liable to be set aside.

18.

On the other hand, Respondent counsel contended that Workman has not worked continuously for 240 days

in any preceding calendar year and reference of the industrial dispute is not maintainable. Before examining the

claim of the Workman on merit it would be apposite to have a glance on the relevant provision pertaining to

retrenchment of workman under I.D. Act, 1947.

2(oo) “retrenchment” means the termination by the employer of the service of a workman for any reason whatsoever,

otherwise than as a punishment inflicted by way of disciplinary action, but does not include—

(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of superannuation if the contract of employment between the

employer and the workman concerned contains a stipulation in that behalf; or

(bb) termination of the service of the workman as a result of the non-renewal of the contract of employment between

the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in

that behalf contained therein; or

(c) termination of the service of a workman on the ground of continued ill-health;”

In view of the definition of retrenchment, perused the record. The Workman claims that he had been terminated from

the service of the Respondent in contravention of the provision of ID Act. The case of the Workman does not fall in

any exclusive clause of section 2(oo). Therefore, he is included in the category of retrenchment as defined under

section 2(oo) of the I.D.Act, 1947.

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

Thus, in view of the above provision, Workman has to prove that he had worked with Respondent continuously for

240 days uninterruptedly in 12 months of a calendar year just preceding from data of his termination i.e., 31.3.1997.

It is settled law that the initial burden of proof to prove the fact of 240 days of service in the 12 months of a calendar

year just preceding from the date of termination, lies upon the Workman and he is duty bound to prove this factum

by adducing oral as well as documentary evidence in support of his claim.

As regard burden of proof and calculation of 240 continuous working days, following decisions of Hon’ble Supreme

Court are relevant as discussed here under:-

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[PART II—SEC. 3(ii)]

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and Chapter

VA.”

19.

Thus, in view of the law laid down by Hon'ble Apex Court as discussed above in respect of calculating the

240 days continuous service by workman as per provision under Section 25-F read with Section 25-B of the I.D. Act,

1947, we have to examine whether Workman herein has discharged his initial burden of proof in respect of his

claim of 240 days continuous service in a calendar year just preceding from the date of his termination i.e.,

31.3.1997 by his evidence.

20.

In order to corroborate the averments made in claim statement, Petitioner has examined himself as WW1

and in his oral testimony WW1 has stated that he joined the service of Respondent at Ponnur Branch, on 28.7.87 as a

Messenger and worked continuously in various branches depending upon the availability of work and also as per the

orders of bank officers till 31.3.1997. WW1 states that the Respondent has not given any advance notice to him

before his termination and has not obtained prior permission from central government for his retrenchment and

Respondent has not given him any order of termination. Further, WW1 states that he had worked Ponnur branch of

the Respondent and Ex.W1 is the Service certificate for 1296 days for the period of July 1987 to March, 1997. Ex.

W2 is the Copy of representation. Ex. W3 is the acknowledgement of Ex.W2 representation.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8605

21.

Further WW1 states that he worked for more than 240 days continuously in different spells in one year

period of time and he worked for 260 days continuously during the period from April, 1996 to March, 1997, Ex.W1 is

the certificate in this regard. Further, WW1 states that there were no complaints against him from any customers or

officers of the Respondent throughout the period of his service. This Witness was cross examined by the Respondent

counsel and in his cross examination the WW1 states that he was given appointment as a messenger on temporary

basis in the year 1987. Further, witness states that he was not sponsored by any employment exchange. Further,

witness states that he did not work continuously and he used to work depending upon availability of work in the bank.

Further, in reply to the question put by the Respondent counsel in cross examination, WW1 states that it is true that

he did not work for 240 days in any year in his service.

Month

Working days

April,1996

30

May, 1996

31

June, 1996

09

July, 1996

29

August, 1996

23

September, 1996

30

October, 1996

29

November, 1996

00

December, 1996

06

January, 1997

29

February, 1997

13

March, 1997

31

Total

260

Thus, sum of working days as shown in the above table is 260 days which is more than 240 working days as required

under the provision of section 25F of the ID Act for continuous service.

22.

However, Learned Counsel for Respondent bank has contended that the Petitioner has not worked

continuously for 240 days in a calendar year with the Respondent and protection from termination is not available to

Petitioner as per provision under section 25 F of I.D. Act, 1947. On going oral and documentary evidence available

on record it manifest that Respondent had engaged the Petitioner as a temporary messenger in different spells as

mentioned in his appointment letter during the total period of about 10 years. We may conclude from the documents

filed in evidence on record, that the Respondent has created artificial breaks in the working days of the Petitioner in

order to deprive him from completing 240 days of continuous service and in order to defeat social security provision

under the I.D. Act, 1947. Moreover, Petitioner has been regularly engaged during the long period of 10 years by the

Respondent as a temporary messenger and has created artificial breaks of few days or more in his engagement as

employee. The conduct of Respondent in creating artificial breaks in engagement of workers is nothing but unfair

labour practice adopted by Respondent in order to deprive the Petitioner from entitlement of any benefits of social

security under the provision of I.D. Act, 1947. Thus, it can safely be concluded that Respondent with malafide

intention has deliberately created artificial break in the employment of the Petitioner as a temporary messenger.

23.

Thus, in view of the fore gone discussion and on going documentary and oral evidence on record I am of the

view that the Workman had worked for 240 days continuously in 12 months of calendar year just preceding from the

date of his termination i.e., 31.3.1997. Undisputedly, Respondent has not filed any document pertaining to the fact

that 3 months notice was issued to the Petitioner as per provision contained under section 25N of the ID Act before

termination of Petitioner for service by oral order w.e.f.1.4.1997. Further, there is no evidence on record to the fact

that Respondent has paid any amount toward compensation. Therefore, oral termination order of the Petitioner from

employment issued by Respondent with effect from 1.4.1997 is in contravention of provision contained under section

25N of the I.D. Act, 1947 and hence not sustainable in the eye of law.

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[PART II—SEC. 3(ii)]

In the case of Shankar Bhimrao Kadam and others Vs. Tata Mototrs Limited, Bombay High Court in its

decision dated 28.2.2022 in Writ Petition No.5588 of 2017 have held:-

"52. I have independently assessed the entire oral and documentary evidence adduced before the Labour Court in

these cases and upon analysis of the same, I have come to a firm conclusion that in hundreds of cases, the present

Respondent has created a farcical picture by posing that the work allotted to the temporaries was limited only to the

maximum extent of 7 months. As discussed above, the dedicated department for engagement of temporary workers,

apparently kept a close watch on the duration of employment of these Petitioners and in a case like Balu Bapuji

Shelke, who had put in 232 days in his first round and 238 days in his third round, his service was abruptly

intercepted and he was disengaged. He had almost reached the figure of 240 days and was thrown out, after

completing 238 days. This indicates that the Respondent-management has created an eye-wash and paper-work with

the intention of creating evidence that no worker had completed 240 days. Even in Sunil Pralhad Khomane (supra),

the learned judge of this court, after analyzing the entire evidence before him, concluded that the company has

apparently misused Section 2(oo)(bb). For the reasons assigned by me and my esteemed brother in Sunil (supra), I

find that the said conclusion was justified and in all these cases in hands, Section 2(oo)(bb) will not be applicable. To

hold otherwise, would create a mockery of Section 2(oo)(bb).

58. It cannot be ignored from the various rounds of temporary employments of these temporaries that after one

disengagement, they used to look forward for the next appointment order. As expected, they used to receive such

appointment orders. They used to perform their duties not only till the tenure mentioned in the appointment order was

completed, but even upto reaching any duration between 225 days to 238 days in one single stint of temporary

employment. None of the temporaries in such cases, ever received an appointment order that a particular temporary

would work for 238 days or 236 days, etc. The maximum tenure was an appointment for 7 months. This was not the

pattern followed in Mahindra & Mahindra Ltd., Nagpur (supra), inasmuch, as it was noticed by this court in the said

case that the workers used to work in other factories during their disengagement and had actually approached the

Industrial Court after about 9 to 23 years."

Similarly, in the present case Respondent has issued number of appointment letters to engage the Workman for the

work in different spells for his employment in its branches. The practice of Respondent management of issuance of

the appointment letters in different spells for this engagement of the Petitioner Workman during the whole period for

more than ten years clearly manifest that Respondent management has adopted unfair labour practice in order to

deprive the Workman from availing social security benefits accruing to him under the provision of Industrial Disputes

Act, 1947.

24.

Perused the record. Petitioner witness WW1 in his statement in chief has categorically stated that he had

worked for more than 240 days continuously in different spells in a period of one year. He worked for 1296 days

continuously during the period from July, 1987 to March, 1997 at Ponnur branch. Ex.W1 is the certificate in this

regard. Whereas in the cross examination witness WW1 stood firm in respect of his statement given in chief

examination. However, at one place in cross examination in reply to the question he had given the statement that it is

true that he did not work for 240 days in any year. But in the suggestions given by Respondent counsel witness has

stated that it is not true to say that he had never worked for 240 days in any year as stated by him. It is settled law

that the statement of any witness cannot be read in isolation and the whole statement has to be taken into

consideration while appreciating the evidence in the case. Whereas the claim of the Petitioner that he had worked

for more than 240 days in a calendar year with the Respondent is fully corroborated by oral and documentary

evidence produced by the Petitioner. Therefore, the contention of the Respondent in view of the above is not

tenable. Further, documents filed by the Petitioner in evidence goes to reveal that during the period from 1987 upto

the date of his termination i.e., 31.3.1997 workman had been engaged by Respondent for the work on number of

times with the breaks, that goes to manifest that there was the work available in the Respondent bank and also need

of engagement of the Workman. Therefore, the Workman was engaged by Respondent management on number of

times during the long period of more than 10 years and artificial breaks in the employment of Petitioner has been

created by the Respondent intentionally and deliberately in order to deprive the workman from the social security

benefit provided under the ID Act. Therefore, in view of the above, the contention of the Respondent is not tenable.

Respondent has cited number of decisions of Hon’ble Apex Court and Hon'ble High Courts which are being

discussed as hereunder:-

In the case of Bholaram vs. PO, Labour Court Ambala & ors CWP No.4784/2010 dated 2.6.2011, of Hon'ble

High Court of Punjab & Haryana, wherein Hon'ble High Court have held that Petitioner is directed to be reinstated in

the service with 50% of back wages.

Further, in the case of Kuldeep Singh vs. G.M., Instrument Design D & F., DOD, dated 3.12.2010, the facts of the

case are that the Petitioner Kuldeep, the workman was appointed as a Data Entry Operator on daily wages on

8.10.1990 and he worked as such till 28.11.1991 and thereafter on adhoc basis and worked upto 26.5.1992 without

any break when his services were terminated by the employer. The Respondent management, according to Petitioner,

no notice or compensation in lieu thereof, was given for terminating his services though he had worked for 240 days

in the preceding 12 months. In that case Hon'ble Supreme Court have held that the management has terminated the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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services of the Petitioner workman without complying the provision of Sec.25F of the I.D.Act, 1947 and the said

order is illegal, null and void deserves to be set aside, and ordered reinstatement of the Appellant workman with

consequential service benefits without back wages within a period of eight weeks.

Further, in the case of State of Karnataka vs. Uma Devi Civil Appeal No.3595-3612 of 1990 dated 10.4.2006,

therein Constitutional Bench of Hon'ble Supreme Court have held,

“15. We have already indicated the constitutional scheme of public employment in this country, and the executive, or

for that matter the Court, in appropriate cases, would have only the right to regularize an appointment made after

following the due procedure, even though a non-fundamental element of that process or procedure has not been

followed. This right of the executive and that of the court, would not extend to the executive or the court being in a

position to direct that an appointment made in clear violation of the constitutional scheme, and the statutory rules

made in that behalf, can be treated as permanent or can be directed to be treated as permanent.

44. One aspect needs to be clarified. There may be cases where irregular appointments (not illegal appointments) as

explained in S.V.NARAYANAPPA (supra), R.N. NANJUNDAPPA (supra), and B.N. NAGARAJAN (supra), and

referred to in paragraph 15 above, of duly qualified persons in duly sanctioned vacant posts might have been made

and the employees have continued to work for ten years or more but without the intervention of orders of courts or of

tribunals. The question of regularization of the services of such employees may have to be considered on merits in the

light of the principles settled by this Court in the cases above referred to and in the light of this judgment. In that

context, the Union of India, the State Governments and their instrumentalities should take steps to regularize as a one

time measure, the services of such irregularly appointed, who have worked for ten years or more in duly sanctioned

posts but not under cover of orders of courts or of tribunals and should further ensure that regular recruitments are

undertaken to fill those vacant sanctioned posts that require to be filled up, in cases where temporary employees or

daily wagers are being now employed. The process must be set in motion within six months from this date. We also

clarify that regularization, if any already made, but not subjudice, need not be reopened based on this judgment, but

there should be no further by-passing of the constitutional requirement and regularizing or making permanent, those

not duly appointed as per the constitutional scheme.”

Thus, in the above cited decision Hon'ble Apex Court has laid down guidelines for deciding the question of

regularization of the services of the employees. Further, as regard other decisions of Hon’ble Court filed by the

Petitioner in support of his argument, therein, the Hon’ble Supreme Court has laid down the principle that the

termination of the employee in contravention of the provision of Sec.25F of I.D. Act, 1947 is illegal and null and

void and liable to be set aside.

Moreover, Hon’ble Supreme Court in the case of Anoop Sharma vs. Exec. Engineer Public Health Division dated

9.4.2010, Civil Appeal No.3478 of 2010 have held:-

“15. In State Bank of India v. N. Sundara Money (supra), the Court emphasised that the workman cannot be

retrenched without payment, at the time of retrenchment, compensation computed in terms of Section 25-F(b).

16. The legal position has been beautifully summed up in Pramod Jha v. State of Bihar (supra) in the following words:

"The underlying object of Section 25-F is twofold. Firstly, a retrenched employee must have one month's time

available at his disposal to search for alternate employment, and so, either he should be given one month's notice of

the proposed termination or he should be paid wages for the notice period. Secondly, the workman must be paid

retrenchment compensation at the time of retrenchment, or before, so that once having been retrenched there should

be no need for him to go to his employer demanding retrenchment compensation and the compensation so paid is not

only a reward earned for his previous services rendered to the employer but is also a sustenance to the worker for the

period which may be spent in searching for another employment. Section 25-F nowhere speaks of the retrenchment

compensation being paid or tendered to the worker along with one month's notice; on the contrary, clause (b)

expressly provides for the payment of compensation being made at the time of retrenchment and by implication it

would be permissible to pay the same before retrenchment. Payment or tender of compensation after the time when

the retrenchment has taken effect would vitiate the retrenchment and non-compliance with the mandatory provision

which has a beneficial purpose and a public policy behind it would result in nullifying the retrenchment.

17. If the workman is retrenched by an oral order or communication or he is simply asked not to come for duty, the

employer will be required to lead tangible and substantive evidence to prove compliance of Clauses (a) and (b)

of Section 25-F of the Act.”

Thus, in view of the fore gone discussion and principle laid down by the Hon'ble Apex Court as discussed above, we

arrive at conclusion that services of workman has been terminated by the Respondent in violation of provision of I.D.

Act, 1947 and hence not sustainable in the eye of law.

Therefore, Issue No.I is answered in favour of the Workman and against the Respondent.

25.

Issue No.II:- In view of the discussion and finding given at Issue No.I, it is established that the

Workman had worked for more than 240 days in a calendar year just preceding from the date of termination.

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[PART II—SEC. 3(ii)]

Respondent has not issued any notice under Sec.25 N of I.D.Act, 1947 before termination of workman and has not

paid any compensation as per provision contained under Sec.25 F of the I.D.Act, 1947. Therefore, the termination of

Petitioner from service vide oral order dated 31.3.1997 by the Respondent is in contravention of the provision

contained under Section 25-F of the I.D. Act, 1947 and is illegal and not justified and liable to be set aside.

26.

Now, let us see whether workman is entitled for reinstatement in the service or for any other relief.

In this context the reference of decision of Hon’ble Supreme Court is relevant. In Ashok Kumar Sharma Vs.

Oberoi flight Services AIR 2010 SCC page 502 Hon’ble Supreme Court have held:-

8. In the case of Sita Ram V. Moti Lal Nehru Farmers Training Institute2 this Court considered the matter thus:

"21. The question, which, however, falls for our consideration is as to whether the Labour Court was justified in

awarding reinstatement of the appellants in service.

22. Keeping in view the period during which the services were rendered by the Respondent (sic appellants); the fact

that the Respondent had stopped its operation of bee farming, and the services of the appellants were terminated in

December 1996, we are of the opinion that it is not a fit case where the appellants could have been directed to be

reinstated in service.

23. Indisputably, the Industrial Court, exercises a discretionary jurisdiction, but such discretion is required to be

exercised judiciously. Relevant factors therefor were required to be taken into consideration; the nature of

appointment, the period of appointment, the availability of the job, etc. should weigh with the court for determination

of such an issue.

24. This Court in a large number of decisions opined that payment of adequate amount of compensation in place of a

direction to be reinstated in service in cases of this nature would subserve the ends of justice. (See Jaipur

Development Authority v. Ramsahai [(2006) 11 SCC 684], M.P. Admn. v. Tribhuban [(2007) 9 SCC 748] and

Uttaranchal Forest Development Corpn. v. M.C. Joshi [(2007) 9 SCC 353])

25. Having regard to the facts and circumstances of this case, we are of the opinion that payment of a sum of Rs.

1,00,000 to each of the appellants, would meet the ends of justice. This appeal is allowed to the aforementioned

extent. In the facts and circumstances of this case, there shall be no order as to costs."

9. The afore-referred two decisions of this Court and few more decisions were considered by us in the case of Jagbir

JT 2008 (3)SC622 Singh V. Haryana State Agriculture Marketing Board3 albeit in the context of retrenchment of a

daily wager in violation of section 25F of Industrial Disputes Act who had worked for more than 240 days in a year

and we observed thus:

"7. It is true that earlier view of this Court articulated in many decisions reflected the legal position that if the

termination of an employee was found to be illegal, the relief of reinstatement with full back wages would ordinarily

follow. However, in recent past, there has been a shift in the legal position and in long line of cases, this Court has

consistently taken the view that relief by way of reinstatement with back wages is not automatic and may be wholly

inappropriate in a given fact situation even though the termination of an employee is in contravention to the

prescribed procedure. Compensation instead of reinstatement has been held to meet the ends of justice."

Further, in the case of State of Himachal Pradesh vs. Suresh Kumar Verma & anr. 1996 AIR 1565, three Judge

Bench of Hon'ble Apex Court have held:-

“It is settled law that having made rules of recruitment to various services under the State or to a class of posts under

the State, the State is bound to follow the same and to have the selection of the candidates made as per recruitment

rules and appointments shall be made accordingly. From the date of discharging the duties attached to the post the

incumbent becomes a member of the services. Appointment on daily wage basis is not an appointment to a post

according to the Rules.

It is seen that the project in which the Respondents were engaged had come to an end and that, therefore, they have

necessarily been terminated for want of work. The Court cannot give any directions to re-engage them in any other

work or appoint them against existing vacancies. Otherwise, the judicial process would become other mode of

recruitment de hors the rules.

Mr. Mahabir Singh, learned counsel for the Respondents contended that there was an admission in the counter

affidavit filed in the High Court that there were vacancies and that, therefore, the Respondents are entitled to be

continued in service. We do not agree with the contention. The vacancies require to be filled up in accordance with

the rules and all the candidates who would otherwise eligible are entitled to apply for when recruitment is made and

seek consideration of their claims on merit according to the Rules for direct recruitment along with all the eligible

candidates. The appointment on daily wages cannot be a conduct pipe for regular appointments which would be a

back-door entry, detrimental to the efficiency of service and would breed seeds of nepotism and corruption. It is

equally settled law that even for Class IV employees recruitment according to rules is a pre-condition. Only work-

charged employees who perform the duties of transitory nature are appointed not to a post but are required to

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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perform the work of transitory and urgent nature so long as the work exists. One temporary employee cannot be

replaced by another temporary employee.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above in the matter at hand, the

Workman has been terminated long back in the year 1997 from the service by the Respondent in contravention of the

provision contained under Section 25-F. He was working as a temporary messenger and had not worked against a

regular permanent or sanctioned post. Moreover, a period of 25 years has already been elapsed since termination of

Petitioner from Respondent service. As per record, Petitioner had worked as temporary workman for a period of

10 years i.e., from 1987 to 1997 in the Respondent employment in different spells. Therefore, keeping in view the

nature of appointment and period of his employment and in the facts and circumstances of the case the award of

compensation instead of direction for reinstatement in the service would be appropriate relief and that will subserve

the end of justice. Thus, in view of the above the Workman in this case is entitled for compensation instead of

direction for reinstatement into service.

27.

Now question arises how much compensation would meet ends of justice. In view of the circumstances of

the case, Workman has served in the service of the Respondent management from 1987 to 1997 in different spells and

has also gone under physical and mental agony during long period of litigation for more than 24 years at different

levels. In the opinion of the court payment of a sum of Rs.2,00,000/- as lumpsum compensation to the Workman

would meet the ends of justice. Therefore, the claim statement is partly allowed.

28.

However, the learned counsel for Petitioner has also argued that the Petitioner Workman is entitled for

regularization in the employment of the Respondent management on the basis of his empanelment in the waiting list

for regularization. Therefore, the Petitioner is entitled for regularization in the service of the management.

29.

Perused the record. Petitioner has filed the claim statement with the averment that Petitioner had worked in

the Respondent bank in different spells from 28.7.1987 till 31st March 1997. But the Respondent has terminated his

services without assigning any valid reason. Further, it is alleged that Respondent has retained his juniors in his

services and Respondent has failed to take prior permission from government for any retrenchment. In the claim

statement there is no iota of the pleading regarding regularization of Petitioner in the service of the Respondent

management. Further, in the relief clause of claim statement Petitioner has not mentioned prayer for the

regularization in the Respondent employment. The relief clause of the claim statement reads out as here under:-

“to set aside the termination order dated 1.4.97 of the claimant and direct the Respondents to reinstate the Claimant

into service with continuity of service together with back wages and all attendant benefits, etc.,”

Thus, in the absence of any pleading and evidence in support of Petitioner’s claim of regularization in the

employment of Respondent, the plea in respect of regularization is not maintainable.

In this context I would like to make reference of the decision of Supreme Court in the case of Ram Sarup

Gupta(dead) by LRs v. Bishun Narain Inter College and others 1987 AIR 1242. In this case Hon’ble Supreme

Court have held:-

“It is well settled that in the absence of pleading, evidence, if any, produced by the parties cannot be considered. It is

also equally settled that no party should be permitted to travel beyond its pleading and that all necessary and

material facts should be pleaded by the party in support of the case setup by it. The object and purpose of pleading is

to enable the advisory party to know the case it has to meet. In order to have a fair trial it is imperative that the party

should state the essential material facts so that other party may not be taken by surprise.”

Hon’ble Supreme Court in several decisions have reiterated that evidence not supported by the pleadings is not

generally admissible. Therefore, in view of law laid down by Hon'ble Apex Court the evidence presented by WW1 in

respect of the claim of regularization in the employment is not admissible as there is no pleading in the claim

statement of the Petitioner to this effect.Therefore, in view of the above, the plea regarding regularization is not

tenable.

This issue is answered accordingly.

AWARD

The action of the management of State Bank of India, Local Head Office, Hyderabad in terminating the

services of Sri Gollamudi Adam, Temporary Messenger, with effect from 31.3.1997 is held not justified. Therefore,

termination order dated 31.3.1997 is hereby set aside. Respondent is directed to pay compensation of Rs.2,00,000/-

(Rupees two lakhs) to the workman within two months from the date of receipt of this award. Reference is answered

accordingly.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 16th day of April, 2026.

IRFAN QAMAR, Presiding Officer

8610

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Gollamudi Adam

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1:

Photocopy of Service Certificate dated NIL

Ex.W2:

Photocopy of representation

Ex.W3:

Photocopy of ack.of representation Ex.W2

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 29 tqykbZ, 2026

का.आ. 1700.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सि

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल

सं्‍ ा 30/2003) dks izdkf”kr djrh gS]

[la0-,y-12012/201/2002-vkbZ-vkj-( बी-I)]

सलोनी, उृ जनिेिक

New Delhi, the 29th July, 2026

S.O. 1700.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award ( Reference.I.D.No.30/2003) of the Central Government Industrial Tribunal-

cum-Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of SBI

of India and their workmen,

[F. No. L-12012/201/2002 – IR (B-I)]

SALONI, Deputy Director

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8611

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 9th day of June, 2026

INDUSTRIAL DISPUTE No. 30/2003

Between:

Sri A. Appa Rao,

S/o Ramaiah,

Totacheria,

Munagacheria (P.O.)

Panuganchiproul,

Krishna Distt.

……Petitioner

AND

The Asst. General manager,

State Bank of India,

Zonal Office, RG-II,

Labbipet, Vijayawada – 520 003.

… Respondent

Appearances:

For the Petitioner :

Sri Macherla Rangaiah, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

The Government of India, Ministry of Labour by its order No.L-12012/201/2002- IR(B.I) dated 29.1.2003

referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between

the management of State Bank of India and their workman. The reference is,

THE SCHEDULE

“Whether the action of the Management of State Bank of India, Vijayawada Zone in terminating the services

of Sri A. Appa Rao, Ex.Temporary Messenger, is justified? If not, what relief the workman is entitled?”

The reference is numbered in this Tribunal as I.D. No. 30/2003 and notices were issued to the parties concerned.

2.

Petitioner has filed his claim statement and as per his claim she has worked for more than 240 days in the

Respondent organization during the period from 1.1.1985 to 31.12.1986 but, his services has been terminated

without any reasonable ground or following any principle and in violation of provision of ID Act of law and prayed

to reinstate his with all benefits from the date of his actual termination.

3.

Respondent has filed the counter wherein he has denied the allegations made in claim statement by the

petitioner and contended that Petitioner had not worked for 240 days in 12 months of any calendar year just

preceding from date of termination. Therefore, the provision of Sec.25F of I.D. Act, 1947 is not applicable to the

Petitioner case and his claim statement is liable to be dismissed.

4.

Perused the record. As per provision contained u/s.25F of the Act, the workman has to put in 240 days

continuous service just preceding from the date of his termination in a 12 month of a calendar year. But, despite

sufficient opportunity petitioner failed to adduce any oral or documentary evidence in support of his claim of 240

days of the service in a calendar year just preceding from the date of his termination. Therefore, the claim of the

Petitioner is not substantiated by any oral or documentary evidence. Therefore, ‘No Claim’ award is passed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant and corrected by me on this the 9th day of

June, 2026.

IRFAN QAMAR, Presiding Officer

8612

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1701.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सि

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल सं्‍ ा

43/2003) dks izdkf”kr djrh gS]

[la0-,y-39025/01/2026-vkbZ-vkj-( बी-II)-83]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1701.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.43/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State

Bank of India and their workmen,

[No. L-39025/01/2026- IR (B-II)- 83]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 18th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 43/2003

[Old ID No. 30/2000 of Labour Court, Guntur]

Between:

Sri S. Devadas,

S/o Kondaiah,

Parakondapadu village,

Gudluru Mandal,

Prakasam distt.

… Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8613

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Zonal Manager,

State Bank of India,

Zonal office,

Tirupathi.

4.

The Branch Manager,

State Bank of India,

Kondepi branch.

Prakasam District.

…..Respondents

Appearances:

For the Petitioner :

M/s. S. Prasada Rao, Advocates

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri S. Devadas who worked as Messenger (who will be referred to as the workman) has filed this petition

under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit. Earlier Petitioner

has filed this dispute before the Labour Court, Guntur for adjudication and later the same has been transferred to

this Tribunal bearing ID No. 30/2000, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II)

dated 18.10.2001 and registered, numbered in this Tribunal as LC No. 43/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the aggrieved

Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble High Court of

Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and

set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central

Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of

India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive vacancy arises.

This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch petitions was

challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of 2014. The

aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High Court of

Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased

to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

8614

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases.This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1986 for one year 1986 and has

rendered unblemished service spreading over a period of about one year. The Respondent has terminated services of

Workman by oral orders with effect from 1986. Further, it is submitted that the management of Respondent bank

decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by wait-

listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. (B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the list

of the selected candidates arose with that it’s a question of time their appointments or services would be regularized

in the services of the bank. The Workman was working with the bank on temporary basis was under the bonafide

hope that sooner his services will be regularized with the bank. He is thereby closed all his options elsewhere. It is

needless to point out that employing person to whom hope of employment in substantial terms was made is a facet of

Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8615

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High Court

also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned that

only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

8616

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management to

terminate the services of the temporary employees who are working in the bank services like the Workman herein as

it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management has

engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

High Court without considering the cases of the similarly situated candidates like the Workman herein. It is submitted

inspite of engaging fresh candidates as is now being done by the Management they would have continued the

similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices and

terminated the services of the candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without jurisdiction

and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of Understanding dated

27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is not published anywhere

to brought to the notice of the Workman whose rights are being affected. It is submitted that Management did not

adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled candidates

like the Workman here. It is pertinent to mention here that the Respondent Management sent letters to the all similarly

situated candidates like the Workman in the month of June, 1997, subsequent to the passing of impugned termination

orders. After knowing the facts that the candidates are litigating, the Management refused to engage these candidates.

It is once again reiterated that the panels are meant for absorption but not for termination. It was the duty of the

Management to engage the empanelled candidates like the Workman even in temporary vacancies till they are

absorbed permanently in regular vacancies. Hence, the action of the Respondent Management terminating the services

of the Workman by oral order dated 31.3.97 is unjust, illegal, violative of principles of natural justice and hence, the

Management be directed to reinstate and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8617

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement. A

3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow the

provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in 12

consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned

that only those temporary employees who had put in temporary service of 90 days or more days after 1.1.82 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 days or more days, the bank by way of a further concession

entered into settlements. Even in respect of those who had put in less than 90 days and also the bank went a step

further and said those persons who are working after 1975 were also considered. Hence, there was a genuine effort on

the part of the Respondent bank to provide as many as possible jobs subject to the availability of the vacancies.

However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final, settlement of

all the claims and disputes for the past period, in respect of temporary workmen covered by the settlement. Another

settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and

separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies arising

between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers, they can be

considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were prepared

zone-wise separately for messengers and non-messengers in the descending order of temporary service put in by the

candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the Regional

Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was arrived

between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived at

and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned. It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W4. Further, the Workman has filed photocopies of documents in support of

his claim which are discussed as under:-

Ex.W1 is the transfer certificate. Ex.W2 is the income certificate. Ex.W3 is the caste certificate. Ex.W4 is the

conduct certificate.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has exhibited

12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement dated

27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings dated

9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt. 27.2.1997.

Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-Messengerial Panel.

Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court of A.P.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8619

in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP No. 11886-

11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both the

parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri S. Devadas, a

Messenger with effect from 1986 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.3.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.3.1997 and it has also been communicated to all concerned that the panels

8620

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of panel

on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8621

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1986without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

1986without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on merit

it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8623

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., the year 1986.

In this context, WW1 in his cross examination has stated that,

“ My service was for total no. of 186 days continuously.…..

I was not sponsored by employment exchange. ….. It is not true to suggest that I never worked for 240 days in a year

continuously and I was casual worker I am not entitled for any relief.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has indulged

in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1986 rather he was disengaged in view of the non-availability of the work in the branch. Further, there was

direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/ temporary

Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman does not amount to termination. Moreover, the

Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of the I.D. Act,

1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240 days

continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.3.1997, therefore it was directed to issue suitable instructions not to

make temporary appointments from 31.3.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by DGM

that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has been

terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent is

not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager for

which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 31.3.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

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[PART II—SEC. 3(ii)]

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the Federation

and the Management that both the panels of temporary employees and daily wagers /casual labour would be kept alive

upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from both the lists

concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute is filed as a

material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed between the

Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial

Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter may be

referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life of

panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant case

the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8625

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in the

settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding nature

of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the I.D.

Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated

30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no

legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is allowed

to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent management

was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given

chance to the permanent post were seniors in number of working days in panel list and Workman herein was junior

to those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “The

Petitioner has not completed 240 days of service in a calendar year.” Although this witness was cross examined by

the Petitioner but the above statement of the management witness in chief remained uncontroverted, as the witness

MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the Petitioner that he has been

removed from service by the management illegally is untenable. Further, witness MW1 in his chief statement has

stated that, “The temporary messengers and Non-messengers were engaged by the bank in leave vacancies and for

administrative exigencies. The Petitioner did not work continuously for 240 days in any year or over a period of 36

months.” This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the

witness MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil

eligibility criteria of working days as required for regularization. Therefore, he was not given regularisation in the

employment of the Respondent. Therefore, in view of the statement of MW1, the claim of the Petitioner that he was

refused regularization by the Respondent management illegally, is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel i.e.,

31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for his

absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8627

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

8628

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.3.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri S. Devadas, Ex. Messenger by way of oral orders w.e.f. 1986 is justified. Hence, the Petitioner is not

entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 18th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri S. Devadas

MW1: Sri I.S. Appa Rao

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8629

Documents marked for the Petitioner

Ex.W1:

Photocopy of transfer certificate

Ex.W2:

Photocopy of income certificate

Ex.W3:

Photocopy of caste certificate

Ex.W4:

Photocopy of conduct certificate

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1702.— vkS|ksfxd fookn vf/kfu;e] 1947 1947 dk 14)dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd

fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सि

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल सं्‍ ा

18/2003) dks izdkf”kr djrh gS]

[la0-,y-39025/01/2026-vkbZ-vkj-( बी-II)-71]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1702.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central Government

hereby publishes the Award (.No.LC.18/2003) of the Central Government Industrial Tribunal-cum-Labour Court,

Hyderabad as shown in the Annexure, in the industrial dispute between the Management of Satate Bank of India and

their workmen,

[F. No. L-39025/01/2026- IR (B-II)- 71]

SALONI, Deputy Director

8630

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 10th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 18/2003

[Old ID No. 232/2000 of Labour Court, Guntur]

Between:

Sri D. Ratna Prakash

S/o Vedanayakam,

R/o Vijayawada,

Krishna distt.

… Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad-500 095.

3.

The Regional Asst. General Manager,

State Bank of India,

Zonal Office, Vijayawada Zone,

Vijayawada.

4.

The Branch Manager,

State Bank of India,

Governorpet branch,

Vijayawada

Krishna district.

…..Respondents

Appearances:

For the Petitioner :

Sri S. Adinarayana, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri D. Ratna Prakash who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger/Sweeper duly granting all the consequential benefits such as continuity of

service, back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit. Earlier

Petitioner has filed this dispute before the Labour Court, Guntur for adjudication and later the same has been

transferred to this Tribunal bearing ID No. 232/2000, as per orders of Central Government vide Lr.No.H-

11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in this Tribunal as LC No. 18/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8631

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the aggrieved

Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble High Court of

Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and

set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central

Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of

India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive vacancy arises.

This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch petitions was

challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of 2014. The

aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High Court of

Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased

to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 17.2.1988 to November, 1994

and has rendered unblemished service spreading over a period of about 6 years. The Respondent has terminated

services of Workman by oral orders with effect from November, 1994. Further, it is submitted that the management

of Respondent bank decided to give a chance to temporarily employed personnel “found suitable for permanent

appointment” by wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

8632

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the years

1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the panel,

eligible temporary employees who have been empanelled could not appear in the earlier interviews and have been

pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under the

bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High court

of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High Court also

recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the directions

given by the High Court all candidates whose names appeared in the select panels prepared on the basis of the

agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8633

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be

decided by entering into a settlement with the representative union. In respect of temporary employees who had put in

less than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is

mentioned that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982

would be eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement

in respect of employees who had put in temporary service of 90 or more days, the bank by way of further concession

entered into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management to

terminate the services of the temporary employees who are working in the bank services like the Workman herein as

it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices and

8634

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

terminated the services of the candidates with effect from November, 1994 which is arbitrary, discriminatory,

contrary to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of

the Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without jurisdiction

and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of Understanding dated

27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is not published anywhere

to brought to the notice of the Workman whose rights are being affected. It is submitted that Management did not

adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled candidates

like the Workman here. It is pertinent to mention here that the Respondent Management sent letters to the all similarly

situated candidates like the Workman in the month of June, 1997, subsequent to the passing of impugned termination

orders. After knowing the facts that the candidates are litigating, the Management refused to engage these candidates.

It is once again reiterated that the panels are meant for absorption but not for termination. It was the duty of the

Management to engage the empanelled candidates like the Workman even in temporary vacancies till they are

absorbed permanently in regular vacancies. Hence, the action of the Respondent Management terminating the services

of the Workman by oral order dated 31.3.97 is unjust, illegal, violative of principles of natural justice and hence, the

Management be directed to reinstate and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement. A

3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it is

mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8635

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were prepared

zone-wise separately for messengers and non-messengers in the descending order of temporary service put in by the

candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the Regional

Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was arrived

between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived at

and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned. It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

8636

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was filed

and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed Special

Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme Court of

India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP No.9206/97

is of no consequences as the same has already been set aside. The observations made in the Judgements cannot be

relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play. Further the

issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts. Hence,

the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W13. Further, the Workman has filed photocopies of documents in support of

his claim which are discussed as under:-

Ex.W1 to Ex.W5 are the service certificates. Ex.W6 is the employment card. Ex.W7 is the study certificate. Ex.W8

is the transfer certificate. Ex.W9 is the panel list. Ex.W10 is the interview call letter. Ex.W11 is the stay order.

Ex.W12 is the 1992 panel list. Ex.W13 is the legal notice.

21.

On the other hand, Respondent has examined witness MW1 Sri K. Chandra Sekhara Goud and this witness

has exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-Messengerial

Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court

of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP

No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Governorpet branch in terminating the services of

Workman Sri D. Ratna Prakash, a Messenger with effect from November, 1994 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8637

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from November, 1994. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from November, 1994.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from November, 1994 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of

settlements entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by

Respondent Management is also direction to Branch Manager, State Bank of India not to make any temporary

messengerial category appointment with effect from November, 1994 and it has also been communicated to all

concerned that the panels of temporary employees and daily wagers maintained by Zonal offices stand lapsed from

31.1.1997. Further, office order dated 31.3.1997 has been issued by Respondent management that goes to reveal

that the said office order has been issued to this effect that, “Consequent on absorption of temporary employees in

permanent cadre, it has been decided by the competent authority that no one onwards, no further daily labour or

temporary employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents

of the aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by

the Respondent management with effect from November, 1994 because of the lapsed of panel of temporary workers

and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th

settlement which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties.

Therefore, Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding

lapse of panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per

provision contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

8638

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on November, 1994 without issuing any notice or paying any salary or compensation in lieu

thereof. Therefore, the termination order of the Workman from service is in violation of provision contained Under

Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8639

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

November, 1994 without notice of salary or compensation in lieu thereof. Before examining the claim of the

Workman on merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.-No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

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[PART II—SEC. 3(ii)]

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and Chapter

VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., November, 1994.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange and did not undergo the regular process of selection before my

engagement as a temporary messenger in the branch..”

“It is true that I did not work for 240 days in any year in my entire service in the bank.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., November, 1994. Thus, the claim

of the Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination,

in contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated November, 1994 rather he was disengaged in view of the non-availability of the work in the branch. Further,

there was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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temporary Worker w.e.f. November, 1994. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., November, 1994.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from November, 1994, therefore it was directed to issue suitable instructions not

to make temporary appointments from November, 1994. There is no mention in this order that the Workman herein

has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from November, 1994 and there after. It is settled law that the daily wagers are engaged by the employer depending

upon the availability of work and as the work was not available the Workman was not engaged further by the

Respondent management. Therefore, the Workman on the ground of number of days he had worked in the

Respondent bank cannot claim any right to reinstate him into the employment. As the Workman failed to prove the

mandatory condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the Federation

and the Management that both the panels of temporary employees and daily wagers /casual labour would be kept alive

upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from both the lists

concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute is filed as a

material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed between the

Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial

Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter may be

referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

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31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life of

panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant case

the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in the

settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding nature

of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the I.D.

Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated

30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no

legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is allowed

to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent management

was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given

chance to the permanent post were seniors in number of working days in panel list and Workman herein was junior

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8643

to those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross

examination the witness WW1 states:-

“I am not aware of the settlements between the federation and the Management. …. Further witness states, “It is true

that I am not having any documents to show that any of my juniors are continuing in service in the bank.”

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of

various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was

prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself

admitted that some of the temporary employees whose names were included in the panel were given regular

appointment in the bank in order of their seniority in the panel and he is not having any document to show that any

person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the

allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of

the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,

there is no evidence on record that bank has given the appointment to the temporary employees as well as daily

wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no

evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.

Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in

order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed that

both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the date

of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

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[PART II—SEC. 3(ii)]

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8645

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on November,

1994. Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum

of understanding was reached between the SBI and SBI Staff Federation providing that both the panels above

mentioned will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy

of the statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989

non- messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was

included in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could

not be given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri D. Ratna Prakash, Ex. Messenger by way of oral orders w.e.f. November, 1994 is justified. Hence,

the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 10th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri D. Ratna Prakash

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1 to

Ex.W5:

Photocopies of service certificates

Ex.W6:

Photocopy of employment card

Ex.W7:

Photocopy of study certificate

Ex.W8:

Photocopy of transfer certificate

Ex.W9:

Photocopy of panel list

Ex.W10:

Photostat copy of interview call letter

Ex.W11:

Photocopy of stay order

Ex.W12:

Photocopy of 1992 panel list

Ex.W13:

Photocopy of legal notice.

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8647

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1703.— vkS|ksfxd fookn vf/kfu;e] 1947 1947 dk 14)dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd fookn

esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सि

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल सं्‍ ा 69/2003) dks

izdkf”kr djrh gS]

[la0-,y-39025/01/2026-vkbZ-vkj-( बी-II)-88]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1703.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.69/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)- 88]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 18th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 69/2003

Between:

Sri Surya Prakash Rao,

S/o Papa Rao,

R/o Srinivasa nagar,

Akkaypalem,

Visakhapatnam – 16.

… Petitioner

And

The Dy. General Manager,

State Bank of India,

Zonal Office,

Visakhapatnam.

…..Respondent

Appearances:

8648

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

For the Petitioner :

Sri B. Vikas, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Surya Prakash Rao who worked as Non- Messenger (who will be referred to as the workman) has filed

this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India

seeking for reinstatement into service as Non-Messenger duly granting all the consequential benefits such as

continuity of service, back wages and all other attendant benefits etc., and such other reliefs as this court may deem

fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Non-Messenger from 20.6.86 to 1997, and has

rendered unblemished service spreading over a period of about 11 years. The Respondent has terminated services of

Workman by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8649

bank decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by

wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8651

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

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The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

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settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and no documents in evidence filed

by the Petitioner.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

2 documents, marked as Ex.M1 to M2. The details of these documents are as follows:-

Ex.M.1 is the working days particulars of workman. Ex.M2 is the printed book containing settlement between the

staff federation and Management for regularization of services of the temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri Surya

Prakash Rao , a Messenger with effect from 31.3.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

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[PART II—SEC. 3(ii)]

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

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parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

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[PART II—SEC. 3(ii)]

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

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Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997. The

witness WW1 in chief examination has stated that he had worked for 61 days in the said branch in the year 1986.

Further, witness states, “It is pertinent to state that I have worked for 261 days during 1986 in the bank and for

which the service certificates are enclosed. I have been not given more than 200 days in any calendar year inspite of

heavy work load and just to avoid us to get regularised. The bank calculations of ½ and 3/4 days are wrong. This

squarely an unfair labour practice.” As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the

Petitioner has to adduce the evidence of continuous service of 240 days in a calendar year just preceding from the

date of his termination i.e., 31st March 1997. But as per the chief statement of witness WW1, he had worked

continuously for 61 days in the branch in the year 1986. Further, witness has stated that he had worked for 261 days

during 1986 in the bank. Further, Petitioner witness has not adduced any evidence that he had worked for 240 days

continuously in a calendar year of 12 months just preceding from the date of his termination i.e., 31st March 1997.

However, no document in evidence filed by the Petitioner to corroborate the averment of the claim statement is

proved by the statement of WW1 or any other witness’s evidence. No single certificate of working days was filed

by the Petitioner to support the claim of the Petitioner that he had worked for 240 days continuously in a calendar

year just preceding from the date of his termination ie., 31st March 97. Therefore, the claim of the Petitioner that he

has been terminated in contravention of provision contained under section 25 F of the Act is not corroborated by his

oral or documentary evidence. Thus, it is clear from the testimony of WW1 that the Workman had not worked for

240 days continuously in any 12 months of a calendar year just preceding from the date of his termination in the

Respondent bank. Therefore, Workman failed to establish his plea by his oral and documentary evidence that he

had worked for 240 days continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997.

Thus, the claim of the Workman that he has been terminated by oral order without issuing notice or payment in lieu

after termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the

documents filed by the Workman in support of his claim, number of days worked with the Respondent goes to

reveal that the Workman had worked intermittently as daily wager depending upon availability of work in branch.

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[PART II—SEC. 3(ii)]

Workman did not file any document of appointment letter or salary slips in support of his claim for appointment as

a non-messenger in the Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8659

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

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[PART II—SEC. 3(ii)]

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “It is

not true to say that bank has removed the Workman from service by taking care to see that he did not complete 240

days of the service continuously within a period of 12 months. The engagement of the service of the workmen was

need based and there is no continuous availability of leave vacancies for engaging his services.” Although this

witness was cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the

Petitioner that he has been removed from service by the management illegally is untenable. Further, witness MW1

in his chief statement has stated that, the workman was engaged in leave vacancies in the bank on Temporary basis.

This witness has categorically stated that, “The last person whose services was regularised has completed 78 days of

employment during the crucial period as per settlement whereas the Workman herein worked for 61 days during that

period.” This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the witness

MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil eligibility

criteria of working days as required for regularisation. Therefore, he was not given regularisation in the employment

of the Respondent. Moreover, the Workman witness WW1 in his cross examination has admitted the fact that he do

not know whether any junior to him were regularised in the services. Further, WW1 states that he do not know

particulars of the settlement reached between the management and staff union. Therefore, in view of the statement of

WW1 in cross examination, the claim of the Petitioner that he was refused regularization by the Respondent

management illegally, is untenable. Thus, from the above statement of the Workman witness WW1 it is clear that

the panel was prepared in terms of various settlements entered into between Staff Federation of State Bank of India

and State Bank of India and it was prepared on the basis of number of days of work put in by the temporary

employees. Further, the Workman himself admitted that some of the temporary employees whose names were

included in the panel were given regular appointment in the bank in order of their seniority in the panel and he is not

having any document to show that any person who worked for less number of days than the Workman was given

appointment in the bank. Therefore, the allegation of the Workman that the regular appointment has been made by

the bank from the panel list in breach of the terms of the settlement and violation of seniority of panel list is not

proved by this evidence of WW1. Thus, there is no evidence on record that bank has given the appointment to the

temporary employees as well as daily wagers from the panel list 1989 and 1992 in breach of seniority of the

temporary employees in the list. There is no evidence of jumbling in the panel list to make appointment of any

permanent Workman in breach of the seniority. Therefore, I am constrained to hold that the Respondent

Management has appointed the workmen from panel list in order of seniority and there is no jumbling of workmen

in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8661

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

8662

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[PART II—SEC. 3(ii)]

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8663

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All

India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of

subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be considered against

vacancies arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also

agreed that all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such

posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus

in both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a memorandum

of understanding was reached between the SBI and SBI Staff Federation providing that both the panels above

mentioned will lapse on 31.3.1997. Ex.M2 contains, Memorandum of understanding and statements giving the

particulars of 1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel.

Further, witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time between SBI

and SBI staff federation and as per seniority, number of days of temporary service put in by them in the bank in the

given period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo

the regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents Ex.M1 and Ex.M2 and

also contentions made in the counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing

has been elicited in his cross examination so as to discredit the testimony of the witness MW1 as regards the date of

lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to

the permanent post. Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states

that panels were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized after the cut

off date as the available vacancies were already filled up and most of these Petitioners were not in the service of the

bank as on the date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-

examination in the absence of cross examination remained uncontraverted, the claim of the Workman that he was

entitled for absorption in permanent post in the branch of Respondent Management on the basis of panel list is found

not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Surya Prakash Rao, Ex. Non-Messenger by way of oral orders w.e.f. 1.4.1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 18th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Surya Prakash Rao

MW1: Sri C.R.M. Sastry

8664

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

Ex.M1:

Photocopy of statement showing no. of working days of Petitioner

Ex.M2:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1704.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k –सि –Je U;k;ky;] िजिराबाि ds iapkV

(सन्दर्भ संख्या 86/2003) dks izdkf”kr djrh gS]

[la- ,y-39025/01/2026-vkbZ-vkj-( बी-II)-87]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1704.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.86/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)- 87]

SALONI, Deputy Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 23rd day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 86/2003

Between:

Sri Yeddu Suri Appa Rao

S/o Suri Babu,

Bonangi Post & Village,

Gantyada mandalam,

Viziaanagaram Dist.. 535160.

… Petitioner

And

The Dy. General Manager,

State Bank of India,

Zonal Office,

Renigunta Road,

Tirupathi.

…..Respondent

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8665

The Dy.General Manager,

State Bank of India,

Visakhapatnam.

…..Respondent

Appearances:

For the Petitioner :

Sri B. Vikas, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Yeddu Suri Appa Rao who worked as Messenger (who will be referred to as the workman)

has filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State

Bank of India seeking for reinstatement into service as Messenger/Sweeper duly granting all the

consequential benefits such as continuity of service, back wages and all other attendant benefits etc., and

such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute

along with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the

reference was answered in favour of the Respondent and against the Workman. That said common award

dated 17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along

with batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court

vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award

dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government

Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India

was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ

Appeals were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is

extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

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[PART II—SEC. 3(ii)]

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Messenger from 23.5.1986 to

1997, and has rendered unblemished service spreading over a period of about 11 years. The Respondent

has terminated services of Workman by oral orders with effect from 1.4.1997. Further, it is submitted that

the management of Respondent bank decided to give a chance to temporarily employed personnel “found

suitable for permanent appointment” by wait- listing them by offering permanent appointment or

waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months

after 1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36

months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee.

The Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of

their respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of

the settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon

the said agreement and the draft, a notification was issued in the newspapers. The last date for responding

to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held.

A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel

was to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the

said letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second

agreement dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was

to be given, “to all eligible temporary employees for permanent appointments. The appointments were

against the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the

enormity of the problem an extension of the currency of the panel, eligible temporary employees who have

been empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter,

“will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the

1st settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88

is the 3rd settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated

30.7.96 is 5th settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95

marked as Ex M5. That due to all these settlements which were extended by subsequent settlements

thereby created reasonable expectations in the list of the selected candidates arose with that it’s a

question of time their appointments or services would be regularized in the services of the bank. The

Workman was working with the bank on temporary basis was under the bonafide hope that sooner his

services will be regularized with the bank. He is thereby closed all his options elsewhere. It is needless

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8667

to point out that employing person to whom hope of employment in substantial terms was made is a facet

of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P ..

by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble

High Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement.

In view of the directions given by the High Court all candidates whose names appeared in the select

panels prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid

upto December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made

alive upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the

bank has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to

exigencies of circumstances and on account of the urgent need in its banks, it employed temporary

employees in subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the

nature of temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken

by the bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair

labour practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on

the other to ensure that benefits that a model employer will extend under various statutes to its employees

is not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

constituted in this regard. The Government of India guidelines made it clear that all the public sector

banks may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

8668

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned.The approach paper also specify at para 6(c) that the

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were also

considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect- that the panel of temporary employees and the panel of daily wage

employees will be operated to a particular period. Therefore, their cases will not be considered. The

Management herein relying upon this settlement in their impugned action. It is submitted that even the

settlement dated 9.1.1991 will not empower the management to terminate the services of the temporary

employees who are working in the bank services like the Workman herein as it does not specify the

termination of the employees. In fact there are so many vacancies wherein the Management has engaged

several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

High Court without considering the cases of the similarly situated candidates like the Workman herein. It

is submitted inspite of engaging fresh candidates as is now being done by the Management they would

have continued the similarly situated candidates like the Workman herein in the services of the bank and

consider their cases for absorption in view of the circulars issued by Central Government as well as the

directions of this Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued

by the Central Government, the Management should not have relied upon the settlement dated 9.1.1991.

Hence, the impugned action of the Management is illegal, unjust, violative of fundamental rights such as

Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties

and sought for absorption. Such employees in the bank services on permanent basis before the date fixed

for carrying out the terms of settlement, the Court held that the members of the union had been empanelled

in the list, they were not regularized and the time was going to run out to the near future and the

Respondent bank and its officers cannot escape from the liability of enforcing the settlement which has

been reached and therefore directed that the bank and the officers shall implement the settlement dated

17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the candidates

with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to their own guidelines and violative

of the constitutional provisions which are guaranteed in Chapter-III of the Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-

called Memorandum of Understanding dated 25.2.1997,

that the action of terminating such

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8669

employees like the Workman by virtue of an impugned oral proceedings without implementing the

settlement would be illegal and unfair labour practice which cannot be allowed to be perpetuated. That the

discontinuance of the Workman after 31.3.97 who had served in the bank in any capacity amounts to

retrenchment. It could not have been done without any notice and it violates Sec.25FF of the Industrial

Disputes Act, 1947 and the said action is violative of principles of natural justice guaranteed under Chapter

III of the Constitution of India. This amounts to retrenchment without one month's notice and taken in

view of such notice. Thus, the main proceedings issued by the Respondent is without jurisdiction and is

arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of Understanding dated

27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is not

published anywhere to brought to the notice of the Workman whose rights are being affected. It is

submitted that Management did not adhere to the procedure envisaged by the Central Government in its'

instructions dated 16.8.90 in the year 1995. The same was not followed in the year 1997 despite

there being vacancies. The management has followed the procedure of calling candidates through

Employment exchange instead of giving chance to the empanelled candidates like the Workman here. It is

pertinent to mention here that the Respondent Management sent letters to the all similarly situated

candidates like the Workman in the month of June, 1997, subsequent to the passing of impugned

termination orders. After knowing the facts that the candidates are litigating, the Management refused to

engage these candidates. It is once again reiterated that the panels are meant for absorption but not for

termination. It was the duty of the Management to engage the empanelled candidates like the Workman

even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is

unjust, illegal, violative of principles of natural justice and hence, the Management be directed to reinstate

and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-

ordinate staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the

restrictions imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent

bank used to engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc.,

depending on the availability of work on purely temporary basis for the smooth and uninterrupted

functioning of the branches. It is submitted that the All India State Bank of India Staff Federation which

represents majority of the employees in the State Bank of India comprising about 98% of the work force as

its' members espoused the cause of temporary employees who have put in less than 240 days of temporary

service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

temporary employees as categorized would be given a chance for being considered for permanent

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear

that all the public sector banks may follow the provisions laid down in the approach paper. The approach

paper specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit

of Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in

12 consecutive months or less, a settlement could be avoided and however if the Management so desired

they could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned

that only those temporary employees who had put in temporary service of 90 days or more days after

8670

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines

envisaged for a settlement in respect of employees who had put in temporary service of 90 days or more

days, the bank by way of a further concession entered into settlements. Even in respect of those who had

put in less than 90 days and also the bank went a step further and said those persons who are working after

1975 were also considered. Hence, there was a genuine effort on the part of the Respondent bank to

provide as many as possible jobs subject to the availability of the vacancies. However, para 6 (k) of the

approach paper made it clear that it is a one time, exercise in full and final, settlement of all the claims and

disputes for the past period, in respect of temporary workmen covered by the settlement. Another

settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was extended

upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed

that while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of

casual/daily wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

absorption. These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees. The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. The Management bank has not violated any of

the provisions of the terms of the said settlement. That the very preparation and maintenance of panel is

in compliance of the terms agreed under these settlements. These settlements were time bound and they

ceased to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8671

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management. Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

permanent through back door entry, which would not only be contrary to the settlements but also to

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge.

Thereafter the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the

Hon'ble Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore,

reference to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the

same has already been set aside. The observations made in the Judgements cannot be relied upon for any

purpose what so ever. The question of operation of Sec.25F would not come into play. Further the issue is

covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts.

Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and he has not filed

documents filed in evidence in support of his claim.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has

exhibited 2 documents, marked as Ex.M1 to M2. The details of these documents are as follows:-

Ex.M.1 is the working days particulars of workman. Ex.M2 is the printed book containing settlement

between the staff federation and Management for regularization of services of the temporary employees

and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list

of various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri

Yeddu Suri Appa Rao, a Messenger with effect from 31.3.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

8672

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid 5th

settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from 1.4.1997. The extract of the said

letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

1.4.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997

as per terms of settlements entered into by both parties. Further, the contents of the subsequent letter dated

27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank of India not

to make any temporary messengerial category appointment with effect from 1.4.1997 and it has also been

communicated to all concerned that the panels of temporary employees and daily wagers maintained by

Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been issued by

Respondent management that goes to reveal that the said office order has been issued to this effect that,

“Consequent on absorption of temporary employees in permanent cadre, it has been decided by the

competent authority that no one onwards, no further daily labour or temporary employees/appointments

should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the aforesaid orders

that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers

and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in

the 5th settlement which has been arrived at between the parties on dated 30.7.1996 with the consensus of

both the parties. Therefore, Workman can not challenge the terms and conditions contained in settlement

dated 30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India and State

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8673

Bank of India Staff Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said Agreement

dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before

a competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing

the date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

8674

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

Workmen and the Workman as individual do not come into picture. Workman in the instant case has

work as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be

utilized for absorption of such Workman to permanent post in order of their seniority in the list. The

Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation

under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel

list is allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both

the panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of

vacancy of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management

of State Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in

lieu thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this

context, the Workman has examined himself as WW1 who has reiterated that Workman has been

terminated from service by Respondent on 31.3.1997 without notice of salary or compensation in lieu

thereof. Before examining the claim of the Workman on merit it would be apposite to reproduce the

provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8675

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

conclusion that 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 period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

8676

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., 31.3.1997. The witness WW1 in chief examination has stated that he had worked for 69

days in the said branch in the year 1986-87. Further, witness states, “I have been not given more than 200

days in any calendar year inspite of heavy work load and just to avoid us to get regularised. The bank

calculations of ½ and 3/4 days are wrong. This squarely an unfair labour practice.” As per provision

contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner has to adduce the evidence of

continuous service of 240 days in a calendar year just preceding from the date of his termination i.e., 31st

March 1997. But as per the chief statement of witness WW1, he had worked continuously for 69 days in

the branch in the year 1986-87. Further, Petitioner witness has not adduced any evidence that he had

worked for 240 days continuously in a calendar year of 12 months just preceding from the date of his

termination i.e., 31st March 1997. However, the documents in evidence filed by the Petitioner do not

corroborate the averment of the claim statement as these documents are not exhibited or proved by the

statement of WW1 or any other witness’s evidence. Further, Petitioner did not file any document in

support of his work done with Respondent, or in support the claim of the Petitioner that he had worked for

240 days continuously in a calendar year just preceding from the date of his termination ie., 31st March

97. Therefore, the claim of the Petitioner that he has been terminated in contravention of provision

contained under section 25 F of the Act is not corroborated by his oral or documentary evidence. Thus, it

is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any

12 months of a calendar year just preceding from the date of his termination in the Respondent bank.

Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked

for 240 days continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997.

Thus, the claim of the Workman that he has been terminated by oral order without issuing notice or

payment in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not

tenable. However the documents filed by the Workman in support of his claim, number of days worked

with the Respondent goes to reveal that the Workman had worked intermittently as daily wager depending

upon availability of work in branch. Workman did not file any document of appointment letter or salary

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8677

slips in support of his claim for appointment as a non-messenger in the Respondent branch on temporary

basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the

force in the argument advanced by the Respondent that in the instant matter, Workman was not terminated

from service by order dated 31.3.1997 rather he was disengaged in view of the non-availability of the

work in the branch. Further, there was direction issued by the Head Office of the Respondent authority

not to engage any daily wager Workman/ temporary Worker w.e.f. 1.4.1997. Thus, such disengagement

of Workman does not amount to termination. Moreover, the Workman failed to prove his claim that he

was terminated in contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to establish his

plea by any oral or documentary evidence that he had worked for 240 days continuously in a twelve

months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees

of 1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central

office not to make any temporary appointments in messengerial cadre from 1.4.1997, therefore it was

directed to issue suitable instructions not to make temporary appointments from 1.4.1997. There is no

mention in this order that the Workman herein has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is

directed to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these

circulars do not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent

bank by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the

Workman that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997

from the service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes

to reveal that he had worked as a daily wager for which he has been paid wages according to number of

working days. As there was an order for prohibition for engaging temporary workmen, in the bank,

therefore, Workman could not be engaged by the Respondent for work from 1.4.1997 and there after. It

is settled law that the daily wagers are engaged by the employer depending upon the availability of work

and as the work was not available the Workman was not engaged further by the Respondent management.

Therefore, the Workman on the ground of number of days he had worked in the Respondent bank cannot

claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under

Sec.25F and 25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

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[PART II—SEC. 3(ii)]

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and

that thereafter the said panels would lapse. It was also agreed that within the framework of the above

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further,

Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by central office and thereby 403

messengerial vacancies were sanctioned to the circle of the Management bank and it was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time

non-messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties.

It is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot

be extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997

in view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As

the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have

held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion

and finding given at Point No. I regarding binding nature of Settlements and terms and conditions

enumerated therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the

considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and

plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no legal

force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies

falls upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to

the permanent post were seniors in number of working days in panel list and Workman herein was junior

to those workmen. Therefore, Workman could not be given absorption to permanent post being junior to

other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence

that, “It is not true to say that bank has removed the Workman from service by taking care to see that he

did not complete 240 days of the service continuously within a period of 12 months. The engagement of

the service of the workmen was need based and there is no continuous availability of leave vacancies for

engaging his services.” Although this witness was cross examined by the Petitioner but the above

statement of the management witness in chief remained uncontroverted, as the witness MW1 was not cross

examined by Petitioner on this point. Therefore, the claim of the Petitioner that he has been removed from

service by the management illegally is untenable. Further, witness MW1 in his chief statement has stated

that, the workman was engaged in leave vacancies in the bank on Temporary basis. This witness has

categorically stated that, “The last person whose services was regularised has completed 168 days of

employment during the crucial period as per settlement whereas the Workman herein worked for 69 days

during that period.” This statement of witness MW1 remained uncontroverted as the Petitioner did not

cross examine the witness MW1 on this point. Therefore, the Petitioner Workman as per number of

working days, failed to fulfil eligibility criteria of working days as required for regularisation. Therefore,

he was not given regularisation in the employment of the Respondent. Moreover, the Workman witness

WW1 in his cross examination has admitted the fact that he do not know whether any junior to him in 1989

panel were regularised in the services. Further, WW1 states that he do not know particulars of the

settlement reached between the management and staff union. Therefore, in view of the statement of WW1

in cross examination, the claim of the Petitioner that he was refused regularization by the Respondent

8680

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[PART II—SEC. 3(ii)]

management illegally, is untenable. Thus, from the above statement of the Workman witness WW1 it is

clear that the panel was prepared in terms of various settlements entered into between Staff Federation of

State Bank of India and State Bank of India and it was prepared on the basis of number of days of work

put in by the temporary employees. Further, the Workman himself admitted that some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order

of their seniority in the panel and he is not having any document to show that any person who worked for

less number of days than the Workman was given appointment in the bank. Therefore, the allegation of

the Workman that the regular appointment has been made by the bank from the panel list in breach of the

terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1.

Thus, there is no evidence on record that bank has given the appointment to the temporary employees as

well as daily wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees

in the list. There is no evidence of jumbling in the panel list to make appointment of any permanent

Workman in breach of the seniority. Therefore, I am constrained to hold that the Respondent Management

has appointed the workmen from panel list in order of seniority and there is no jumbling of workmen in

the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse

of panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim

of Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is

relevant therein Hon’ble Supreme Court have has laid down principle regarding regularization of the

Workman on permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization

of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

labour practice by not filling up permanent posts even though such posts are available and by continuing

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman

failed to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies

were existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of

his seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also

not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross

examination has himself admitted this fact that, some of the temporary employees whose names were

included in the panel were given regular appointment in the bank in order of their seniority in the panel.

The Workman failed to show that there was any breach of terms of settlement has been committed by the

Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

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[PART II—SEC. 3(ii)]

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the

authorities must consider his case for regularization provided he is eligible and qualified according to the

rules and his service record is satisfactory and his appointment does not run counter to the reservation

policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and

MW1 in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991

were entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to

1994 for those temporary employees who has worked on scale wages. Further, MW1 states that two

different panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8683

There are four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and

Visakhapatnam. MW1 states that the temporary employees so empanelled were given permanent

absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1 states that on

9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it was

decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI

and All India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in

respect of subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be

considered against vacancies arising from January 1995 to December 1996, thereafter the said panels lapse.

MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including part

time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be

filled before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed

on 1.4.1997. Further, witness states that on 27.2.1997 a memorandum of understanding was reached

between the SBI and SBI Staff Federation providing that both the panels above mentioned will lapse on

31.3.1997. Ex.M2 contains, Memorandum of understanding and statements giving the particulars of 1989

non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel. Further,

witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the

agreements. All the appointments were made strictly in accordance with the settlements reached from

time to time between SBI and SBI staff federation and as per seniority, number of days of temporary

service put in by them in the bank in the given period. Further, MW1 states petitioner was not sponsored

by any employment exchange he did not undergo the regular process of selection required for appointment

as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the

bank. Further, MW1 states that the vacancies were filled up on regular basis with the temporary

employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents Ex.M1 and

Ex.M2 and also contentions made in the counter. However, MW1 was cross examined by the Petitioner

Counsel. But nothing has been elicited in his cross examination so as to discredit the testimony of the

witness MW1 as regards the date of lapse of both the panels on 31.3.1997 and reasons assigned for non-

absorption of the Petitioner from the panel list to the permanent post. Moreover the witness MW1 was re-

examined by the Respondent and the witness MW1 states that panels were expired in terms of the

settlement send absorptions to the extent of the available vacancies were made. There was no termination

of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank

as on the date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in

re-examination in the absence of cross examination remained uncontraverted, the claim of the Workman

that he was entitled for absorption in permanent post in the branch of Respondent Management on the basis

of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the

Workman is not entitled for any relief and claim statement of Workman sans merit and liable to be

dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri Yeddu Suri Appa Rao, Ex. Messenger by way of oral orders w.e.f. 1.4.1997 is justified.

Hence, the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman

sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 23rd day of June, 2026.

8684

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

IRFAN QAMAR,Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Yeddu Suri Appa Rao

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

Ex.M1:

Photocopy of statement showing no. of working days of Petitioner

Ex.M2:

Photocopy of printed book containing settlement between the staff federation and

Management for regularization of services of the temporary employees and casual

employees.

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1705.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k – सि – Je U;k;ky;] िजिराबाि ds iapkV

(सन्िभल सं्‍ ा 47/2002) dks izdkf”kr djrh gS]

[,y-39025/01/2026-vkbZ-vkj-( बी-II)-74]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1705.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (.No.LC.47/2002) of the Central Government Industrial

Tribunal-cum-Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the

Management of State Bank of India and their workmen,

[No. L-39025/01/2026- IR (B-II)- 74]

SALONI, Deputy Director

In The Central Government Industrial Tribunal Cum Labour Court At Hyderabad

Present: Sri IRFAN QAMAR

Presiding Officer

Dated the 11th day of May, 2026

INDUSTRIAL DISPUTE No. 47/2002

[Old ID No. 28/2001 of Labour Court cum Industrial Tribunal, Visakhapatnam]

Between:

Sri Karanam Gowrinaidu,

S/o Adinarayana,

Vizianagaram.

… Petitioner

And

The Dy General Manager,

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8685

State Bank of India,

Personnel Section,

Zonal office, Region-II,

Visakhapatnam

…...Respondent

Appearances:

For the Petitioner :

Sri

Macherla Rangaiah, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

The Government of India, Ministry of Labour by its order No. L-12012/251/2000-IR(B.I) dated

16.10.2000 referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 to Industrial Tribunal No.I,

Hyderabad for adjudication and later the same has been transferred to this Tribunal bearing ID No.139/2000,

as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001, requiring this forum to

decide the question:

THE SCHEDULE

Sri Karanam Gowrinaidu who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India Seeking

for reinstatement into service as Messenger/Sweeper suly granting all the consequential benefits such as continuity of

service, back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit. Earlier

Petitioner has filed this dispute before the Labour Court cum Industrial Tribunal, Visakhapatnam for adjudication and

later the same has been transferred to this Tribunal bearing ITID (C) No. 28/2001, as per orders of Central

Government vide Lr. No. H-11026/1/2001-IR (C.II) dated 18.10.2001 and registered, numbered in this Tribunal as

LC No. 47/2002.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. AIl these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

8686

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the he joined the service of the Respondent Bank at the workman joined in the services of the Management Institution

as Non-Messenger on 1988 to 1997 and rendered unblemished service spreading over a period of about 10 years, and

by dint of hard work till his services were terminated by oral orders with till his services where terminated by oral

orders with effect from 1.04.1997. Further, it is submitted that the management of Respondent bank decided to give

a chance to temporarily employed personnel “found suitable for permanent appointment” by wait- listing them by

offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8687

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

8688

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8689

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

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[PART II—SEC. 3(ii)]

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W24. Further, the Workman has filed photocopies of documents in support

of his claim which are discussed as under:-

Ex.W1 is the Service Certificate. Ex.W1A is the Service Certificate. Ex. W1B is the Service Certificate dated

21.07.1992. Ex. W2 is the Notification. Ex. W3 is the Interview call letter. Ex. W4 is the Service Certificate dated

12.04.1993. Ex. W5 is the Service Certificate dated 11.05.1993. Ex. W6 is the Service Certificate dated 11.06.1993.

Ex. W7 is the Service Certificate dated 7.10.1993. Ex. W8 is the Service Certificate dated 7.12.1993. Ex. W9 is the

Service Certificate dated 13.05.1994. Ex. W10 is the Service Certificate dated 18.05.1994. Ex. W11 is the Service

Certificate dated2.02.1995. Ex. W12 is the Service Certificate dated 05.12.1994. Ex. W13 is the Service Certificate

dated 21.03.1994. Ex. W14 is the Service Certificate dated 13.05.1994. Ex. W15 is the Service Certificate dated

08.01.1994. Ex. W16 is the Service Certificate dated 17.05.1995. Ex. W17 is the Service Certificate dated

02.02.1995. Ex. W18 is the Service Certificate dated 15.03.1996. Ex. W19 is the Service Certificate dated

08.10.1996. Ex. W20 is the Service Certificate dated 23.11.1999. Ex. W21 is the Service Certificate dated

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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08.11.1996. Ex. W22 is the Service Certificate dated 23.11.1999. Ex. W23 is the letter to Employment exchange by

Respondent. Ex. W24 is the Circular letter dated 14.07.1999.

21.

On the other hand, Respondent has examined witness MW1 Sri Aluru Rama Rao and this witness has

exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Local Head Office, Hyderabad in terminating the

services of Workman Sri G. Anil Kumar, a Messenger with effect from 31.3.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

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[PART II—SEC. 3(ii)]

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8693

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

8694

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[PART II—SEC. 3(ii)]

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8695

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained Under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange did not undergo regular process of selection before my

engagement as temporary Messenger in the branch..”

“It is true that I did not work for 240 days in any year, in my entire service in the bank in any branch.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

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[PART II—SEC. 3(ii)]

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross

examination the witness WW1 states:-

“I applied for appointment as Messenger, in response to the advertisement issued by the bank and the union in the

year 1991.…. Further, witness states, “ The panel was prepared basing upon the number of days of service, put in by

the temporary employees. Some of the temporary employees whose names were included in the panel were given

regular appointment in the bank order of their seniority in the panel…. Further witness states, “It is true that I am

not having any documents to show that any of my juniors are continuing in service in the bank.”

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of

various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was

prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself

admitted that some of the temporary employees whose names were included in the panel were given regular

appointment in the bank in order of their seniority in the panel and he is not having any document to show that any

person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the

allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of

the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,

there is no evidence on record that bank has given the appointment to the temporary employees as well as daily

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[PART II—SEC. 3(ii)]

wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no

evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.

Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in

order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years

of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8699

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

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[PART II—SEC. 3(ii)]

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 1.4.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8701

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri G. Anil Kumar, Ex. Messenger by way of oral orders w.e.f. 31.3.1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed. Reference is answered accordingly.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 11th day of May, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri G. Anil Kumar

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

Ex. W1 to:

Ex.W2:

Photocopy of Service Certificate

Ex.W3:

Photocopy of employment notification

Ex.W4:

Photocopy of letter to CGM (Per) dated 10.10.1990

Ex.W5:

Photocopy of the letter from Government of India reg. recruitment and absorption of temporary

employees dt. 19.8.90

Ex.W6:

Photocopy of the letter from Government of India to Respondent Dt. 30.11.87.

Documents marked for the Respondent

Ex.M1:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1706.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k–सि –Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल

सं्‍ ा 44/2003) dks izdkf”kr djrh gS]

[la0- ,y-39025/01/2026-vkbZ-vkj-( बी-II) – 84]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1706.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (.No.LC.44/2003) of the Central Government Industrial

Tribunal-cum-Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the

Management of State Bank of India and their workmen,

[F. No. L-39025/01/2026- IR (B-II) - 84]

SALONI, Deputy Director

8702

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

ANNExURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 18th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 44/2003

[Old ID No. 243/2000 of Labour Court, Guntur]

Between:

Sri Gujjarlapudi Prakasa Rao ,

S/o Subbaiah,

R/o Rayapudi,

Thulluru Mandal,

Guntur distt.

… Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Regional Asst. General Manager,

State Bank of India,

Zonal Office, Vijayawada Zone,

Vijayawada.

4.

The Branch Manager,

State Bank of India,

Post Box No.2 branch,

Vijayawada.

Krishna district.

…..Respondents

Appearances:

For the Petitioner :

Sri S. Adinarayana, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8703

AWARD

Sri Gujjarlapudi Prakasa Rao who worked as Messenger (who will be referred to as the

workman) has filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the

Respondents State Bank of India seeking for reinstatement into service as Messenger duly granting all the

consequential benefits such as continuity of service, back wages and all other attendant benefits etc., and

such other reliefs as this court may deem fit. Earlier Petitioner has filed this dispute before the Labour

Court, Guntur for adjudication and later the same has been transferred to this Tribunal bearing ID No.

243/2000, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001

and registered, numbered in this Tribunal as LC No. 44/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute

along with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the

reference was answered in favour of the Respondent and against the Workman. That said common award

dated 17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along

with batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court

vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award

dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government

Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India

was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ

Appeals were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is extracted

as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

8704

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Messenger from 26.12.1983

to 28.3.1997 and has rendered unblemished service spreading over a period of about 14 years. The

Respondent has terminated services of Workman by oral orders with effect from 28.3.1997. Further, it is

submitted that the management of Respondent bank decided to give a chance to temporarily employed

personnel “found suitable for permanent appointment” by wait- listing them by offering permanent

appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months

after 1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36

months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee.

The Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of

their respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of

the settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon

the said agreement and the draft, a notification was issued in the newspapers. The last date for responding

to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held.

A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel

was to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the

said letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second

agreement dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was

to be given, “to all eligible temporary employees for permanent appointments. The appointments were

against the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the

enormity of the problem an extension of the currency of the panel, eligible temporary employees who have

been empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter,

“will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the

1st settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88

is the 3rd settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated

30.7.96 is 5th settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95

marked as Ex M5. That due to all these settlements which were extended by subsequent settlements

thereby created reasonable expectations in the list of the selected candidates arose with that it’s a

question of time their appointments or services would be regularized in the services of the bank. The

Workman was working with the bank on temporary basis was under the bonafide hope that sooner his

services will be regularized with the bank. He is thereby closed all his options elsewhere. It is needless

to point out that employing person to whom hope of employment in substantial terms was made is a facet

of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8705

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P .. by

order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In

view of the directions given by the High Court all candidates whose names appeared in the select panels

prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid upto

December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made alive

upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the

bank has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to

exigencies of circumstances and on account of the urgent need in its banks, it employed temporary

employees in subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the

nature of temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken

by the bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair

labour practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on

the other to ensure that benefits that a model employer will extend under various statutes to its employees

is not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

constituted in this regard. The Government of India guidelines made it clear that all the public sector

banks may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned. The approach paper also specify at para 6(c) that the

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

8706

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were also

considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect- that the panel of temporary employees and the panel of daily wage

employees will be operated to a particular period. Therefore, their cases will not be considered. The

Management herein relying upon this settlement in their impugned action. It is submitted that even the

settlement dated 9.1.1991 will not empower the management to terminate the services of the temporary

employees who are working in the bank services like the Workman herein as it does not specify the

termination of the employees. In fact there are so many vacancies wherein the Management has engaged

several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

High Court without considering the cases of the similarly situated candidates like the Workman herein. It

is submitted inspite of engaging fresh candidates as is now being done by the Management they would

have continued the similarly situated candidates like the Workman herein in the services of the bank and

consider their cases for absorption in view of the circulars issued by Central Government as well as the

directions of this Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued

by the Central Government, the Management should not have relied upon the settlement dated 9.1.1991.

Hence, the impugned action of the Management is illegal, unjust, violative of fundamental rights such as

Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties

and sought for absorption. Such employees in the bank services on permanent basis before the date fixed

for carrying out the terms of settlement, the Court held that the members of the union had been empanelled

in the list, they were not regularized and the time was going to run out to the near future and the

Respondent bank and its officers cannot escape from the liability of enforcing the settlement which has

been reached and therefore directed that the bank and the officers shall implement the settlement dated

17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the

candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary to their own guidelines

and violative of the constitutional provisions which are guaranteed in Chapter-III of the Constitution of

India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-

called Memorandum of Understanding dated 25.2.1997,

that the action of terminating such

employees like the Workman by virtue of an impugned oral proceedings without implementing the

settlement would be illegal and unfair labour practice which cannot be allowed to be perpetuated. That the

discontinuance of the Workman after 31.3.97 who had served in the bank in any capacity amounts to

retrenchment. It could not have been done without any notice and it violates Sec.25FF of the Industrial

Disputes Act, 1947 and the said action is violative of principles of natural justice guaranteed under Chapter

III of the Constitution of India. This amounts to retrenchment without one month's notice and taken in

view of such notice. Thus, the main proceedings issued by the Respondent is without jurisdiction and is

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8707

arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of Understanding dated

27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is not

published anywhere to brought to the notice of the Workman whose rights are being affected. It is

submitted that Management did not adhere to the procedure envisaged by the Central Government in its'

instructions dated 16.8.90 in the year 1995. The same was not followed in the year 1997 despite

there being vacancies. The management has followed the procedure of calling candidates through

Employment exchange instead of giving chance to the empanelled candidates like the Workman here. It is

pertinent to mention here that the Respondent Management sent letters to the all similarly situated

candidates like the Workman in the month of June, 1997, subsequent to the passing of impugned

termination orders. After knowing the facts that the candidates are litigating, the Management refused to

engage these candidates. It is once again reiterated that the panels are meant for absorption but not for

termination. It was the duty of the Management to engage the empanelled candidates like the Workman

even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is

unjust, illegal, violative of principles of natural justice and hence, the Management be directed to reinstate

and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-

ordinate staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the

restrictions imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent

bank used to engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc.,

depending on the availability of work on purely temporary basis for the smooth and uninterrupted

functioning of the branches. It is submitted that the All India State Bank of India Staff Federation which

represents majority of the employees in the State Bank of India comprising about 98% of the work force as

its' members espoused the cause of temporary employees who have put in less than 240 days of temporary

service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

temporary employees as categorized would be given a chance for being considered for permanent

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear that

all the public sector banks may follow the provisions laid down in the approach paper. The approach paper

specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit of

Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in 12

consecutive months or less, a settlement could be avoided and however if the Management so desired they

could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned that

only those temporary employees who had put in temporary service of 90 days or more days after 1.1.82

would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by

way of a further concession entered into settlements. Even in respect of those who had put in less than 90

days and also the bank went a step further and said those persons who are working after 1975 were also

considered. Hence, there was a genuine effort on the part of the Respondent bank to provide as many as

possible jobs subject to the availability of the vacancies. However, para 6 (k) of the approach paper made

it clear that it is a one time, exercise in full and final, settlement of all the claims and disputes for the past

8708

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

period, in respect of temporary workmen covered by the settlement. Another settlement was entered on

9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and separate panel

was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies arising

between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers, they can be

considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

absorption. These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees.The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. he Management bank has not violated any of the

provisions of the terms of the said settlement. hat the very preparation and maintenance of panel is in

compliance of the terms agreed under these settlements. hese settlements were time bound and they ceased

to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8709

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management.Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

permanent through back door entry, which would not only be contrary to the settlements but also to

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge.

Thereafter the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the

Hon'ble Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore,

reference to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the

same has already been set aside. The observations made in the Judgements cannot be relied upon for any

purpose what so ever. The question of operation of Sec.25F would not come into play. Further the issue is

covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts.

Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in

evidence which has been exhibited as Ex.W1 to W8. Further, the Workman has filed photocopies of

documents in support of his claim which are discussed as under:-

Ex.W1 is the Service certificate. Ex.W2 is the employment card. Ex.W3 is the transfer certificate.

Ex.W4 is the caste certificate. Ex.W5 is the interview call letter. Ex.W6 is the stay order. Ex.W7 is the

1992 panel list. Ex.W8 is the legal notice.

21.

On the other hand, Respondent has examined witness MW1 Sri K. Chandra Sekhar Goud and this

witness has exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as

follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the

Settlement dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the

conciliation proceedings dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the

Memorandum of Understanding dt. 27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel.

Ex.M9 is the Particulars of 1989 Non-Messengerial Panel. Ex.M10 is the Particulars of 1992 General

Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court of A.P. in Writ Appeal No.86/98

dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP No. 11886-11888 of 1998

dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list

of various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri

Gujjarlapudi Prakasa Rao , a Messenger with effect from 28.3.1997 is justified?

8710

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid 5th

settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from 31.3.1997. The extract of the said

letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on

31.3.1997 as per terms of settlements entered into by both parties. Further, the contents of the subsequent

letter dated 27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank

of India not to make any temporary messengerial category appointment with effect from 31.3.1997 and it

has also been communicated to all concerned that the panels of temporary employees and daily wagers

maintained by Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been

issued by Respondent management that goes to reveal that the said office order has been issued to this

effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been decided by

the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the

contents of the aforesaid orders that the temporary appointment in messengerial category and daily labour

has been stopped by the Respondent management with effect from 31.3.1997 because of the lapsed of

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8711

panel of temporary workers and daily wagers by 31.3.1997. The agreement for lapse of both the panels

on 31.3.1997 is contained in the 5th settlement which has been arrived at between the parties on dated

30.7.1996 with the consensus of both the parties. Therefore, Workman can not challenge the terms and

conditions contained in settlement dated 30.7.1996 regarding lapse of panel on 31.3.1997 as agreed

between State Bank of India and State Bank of India Staff Federation. As per provision contained

u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before

a competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing

the date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

8712

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

Workmen and the Workman as individual do not come into picture. Workman in the instant case has

work as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be

utilized for absorption of such Workman to permanent post in order of their seniority in the list. The

Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation

under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel

list is allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both

the panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of

vacancy of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management

of State Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on 28.3.1997 without issuing any notice or paying any salary or compensation in

lieu thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this

context, the Workman has examined himself as WW1 who has reiterated that Workman has been

terminated from service by Respondent on 28.3.1997 without notice of salary or compensation in lieu

thereof. Before examining the claim of the Workman on merit it would be apposite to reproduce the

provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8713

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

conclusion that 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 period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., the year 28.3.1997 .

In this context, WW1 in his cross examination has stated that,

“ My service was for total no. of 186 days continuously.…..

I was not sponsored by employment exchange. ….. It is not true to suggest that I never worked for 240

days in a year continuously and I was casual worker I am not entitled for any relief.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously

in any 12 months of a calendar year just preceding from the date of his termination in the Respondent

bank. Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had

worked for 240 days continuously in calendar year just preceding from the date of his termination i.e.,

31.3.1997. Thus, the claim of the Workman that he has been terminated by oral order without issuing

notice or payment in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act,

1947 is not tenable. However the documents filed by the Workman in support of his claim, number of

days worked with the Respondent goes to reveal that the Workman had worked intermittently as daily

wager depending upon availability of work in branch. Workman did not file any document of

appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8715

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the

force in the argument advanced by the Respondent that in the instant matter, Workman was not terminated

from service by order dated 28.3.1997 rather he was disengaged in view of the non-availability of the

work in the branch. Further, there was direction issued by the Head Office of the Respondent authority

not to engage any daily wager Workman/ temporary Worker w.e.f. 31.3.1997. Thus, such disengagement

of Workman does not amount to termination. Moreover, the Workman failed to prove his claim that he

was terminated in contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to establish his

plea by any oral or documentary evidence that he had worked for 240 days continuously in a twelve

months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees

of 1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central

office not to make any temporary appointments in messengerial cadre from 31.3.1997, therefore it was

directed to issue suitable instructions not to make temporary appointments from 31.3.1997. There is no

mention in this order that the Workman herein has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is

directed to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these

circulars do not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent

bank by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the

Workman that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997

from the service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes

to reveal that he had worked as a daily wager for which he has been paid wages according to number of

working days. As there was an order for prohibition for engaging temporary workmen, in the bank,

therefore, Workman could not be engaged by the Respondent for work from 31.3.1997 and there after.

It is settled law that the daily wagers are engaged by the employer depending upon the availability of work

and as the work was not available the Workman was not engaged further by the Respondent management.

Therefore, the Workman on the ground of number of days he had worked in the Respondent bank cannot

claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under

Sec.25F and 25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

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[PART II—SEC. 3(ii)]

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and

that thereafter the said panels would lapse. It was also agreed that within the framework of the above

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further,

Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by central office and thereby 403

messengerial vacancies were sanctioned to the circle of the Management bank and it was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time

non-messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties.

It is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot

be extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997

in view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As

the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have

held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

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भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8717

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion

and finding given at Point No. I regarding binding nature of Settlements and terms and conditions

enumerated therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the

considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and

plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no legal

force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies

falls upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to

the permanent post were seniors in number of working days in panel list and Workman herein was junior

to those workmen. Therefore, Workman could not be given absorption to permanent post being junior to

other workmen in the panel list.

39.

“Prior to my oral appointment there was no notification. I know very well that my appointment as

messenger was made in a temporary vacancy.”

…”I used to work depending upon availability of work in the branch. I am not aware of the settlements

between the federation and the Management. …. Further witness states, “It is true that I am not having

any documents to show that any of my juniors are continuing in service in the bank.”

Thus, from the above statement of the Workman witness WW1 it is clear that the Workman himself

admitted that he is not having any document to show that any person who worked for less number of days

than the Workman was given appointment in the bank. Therefore, the allegation of the Workman that the

regular appointment has been made by the bank from the panel list in breach of the terms of the settlement

and violation of seniority of panel list is not proved by this evidence of WW1. Thus, there is no evidence

on record that bank has given the appointment to the temporary employees as well as daily wagers from the

panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no

evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the

seniority. Therefore, I am constrained to hold that the Respondent Management has appointed the

workmen from panel list in order of seniority and there is no jumbling of workmen in the panel list before

it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

8718

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse

of panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim

of Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is

relevant therein Hon’ble Supreme Court have has laid down principle regarding regularization of the

Workman on permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization

of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

labour practice by not filling up permanent posts even though such posts are available and by continuing

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman

failed to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies

were existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of

his seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also

not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross

examination has himself admitted this fact that, some of the temporary employees whose names were

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8719

included in the panel were given regular appointment in the bank in order of their seniority in the panel.

The Workman failed to show that there was any breach of terms of settlement has been committed by the

Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

8720

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[PART II—SEC. 3(ii)]

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the

authorities must consider his case for regularization provided he is eligible and qualified according to the

rules and his service record is satisfactory and his appointment does not run counter to the reservation

policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1

in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were

entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994

for those temporary employees who has worked on scale wages. Further, MW1 states that two different

panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank. There are

four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and Visakhapatnam.

MW1 states that the temporary employees so empanelled were given permanent absorption depending

upon the vacancies so arise strictly in terms of the settlement. MW1 states that on 9.6.1995 conciliation

proceeding was held before the RLC(C), Hyderabad and in said proceedings it was decided that the panels

will be kept live up to 31.3.1997 and vacancies will be filled from both the lists concurrently. A copy of the

said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another settlement was

entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies arising

up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel

so prepared were to be considered against vacancies arising from January 1995 to December 1996,

thereafter the said panels lapse. MW1 states that it was also agreed that all the non- messenger positions in

subordinate cadre including part time attendants specially provided as leave reserve will be filled before

31.3.1997 and as regards to non-messengerial positions it is agreed that all such posts sanctioned and fallen

vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus in both the cases

empanelled list were lapsed on 31.3.1997. Ex.M6 is the copy of the settlement dated 30.7.1996. Further,

witness states that on 27.2.1997 a memorandum of understanding was reached between the SBI and SBI

Staff Federation providing that both the panels above mentioned will lapse on 31.3.1997. Ex.M7 is the

copy of the memorandum of understanding and Ex.M8 is the copy of the statements giving the particulars

of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non- messenger panel, Ex.M10

is the copy of statement of 1992 panel. Further, witness states that petitioner was included in the 1989

panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per

seniority, number of days of temporary service put in by them in the bank in the given period. Further,

MW1 states petitioner was not sponsored by any employment exchange he did not undergo the regular

process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary

employees were terminated from service by the bank. Further, MW1 states that the vacancies were filled

up on regular basis with the temporary employees from the panels and these panels were expired in terms

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8721

of the settlements so reached and there were no vacancies to absorb such employees. Thus, witness MW1

has proved the documents Ex.M1 to Ex.M12 and also contentions made in the counter. However, MW1

was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross examination so

as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent

post. Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that

panels were expired in terms of the settlement send absorptions to the extent of the available vacancies

were made. There was no termination of any temporary messenger as such but their services were not

utilized after the cut off date as the available vacancies were already filled up and most of these Petitioners

were not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the

aforesaid testimony of the MW1 in re-examination in the absence of cross examination remained

uncontraverted, the claim of the Workman that he was entitled for absorption in permanent post in the

branch of Respondent Management on the basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the

Workman is not entitled for any relief and claim statement of Workman sans merit and liable to be

dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri Gujjarlapudi Prakasa Rao , Ex. Messenger by way of oral orders w.e.f. 28.3.1997 is

justified. Hence, the Petitioner is not entitled for any relief as prayed for. The claim statement filed by

Workman sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 18th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Gujjarlapudi Prakasa Rao

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1:

Photocopy of Service certificate

Ex.W2:

Photocopy of employment card

Ex.W3:

Photocopy of transfer certificate

Ex.W4:

Photocopy of caste certificate

Ex.W5:

Photocopy of interview call letter

Ex.W6:

Photocopy of stay order

Ex.W7:

Photocopy of 1992 panel list

Ex.W8:

Photocopy of legal notice.

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.17.11.87

8722

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C)

dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1707.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k–सि–Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल

सं्‍ ा 70/2003) dks izdkf”kr djrh gS]

[स. ,ल.39025/01/2026-आई. आर.(बी –II)-78]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1707.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (.No.LC.70/2003) of the Central Government Industrial

Tribunal-cum-Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the

Management of State Bank of India and their workmen,

[No. L-39025/01/2026- IR (B-II)- 78]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 18th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 70/2003

Between:

Sri Mutyala Srihari,

S/o Simhachalam,

R/o Narsipatnam, Ralli street,

Visakhapatnam.

… Petitioner

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8723

And

The Dy. General Manager,

State Bank of India,

Zonal Office,

Visakhapatnam.

…..Respondent

Appearances:

For the Petitioner :

Sri B. Vikas, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Mutyala Srihari who worked as Non- Messenger (who will be referred to as the workman) has

filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank

of India seeking for reinstatement into service as Non-Messenger duly granting all the consequential

benefits such as continuity of service, back wages and all other attendant benefits etc., and such other

reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute

along with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the

reference was answered in favour of the Respondent and against the Workman. That said common award

dated 17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along

with batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court

vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award

dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government

Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India

was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ

Appeals were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is

extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

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[PART II—SEC. 3(ii)]

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Non-Messenger from 1982 to

1997, and has rendered unblemished service spreading over a period of about 10 years. The Respondent

has terminated services of Workman by oral orders with effect from 1.4.1997. Further, it is submitted that

the management of Respondent bank decided to give a chance to temporarily employed personnel “found

suitable for permanent appointment” by wait- listing them by offering permanent appointment or

waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months

after 1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36

months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee.

The Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of

their respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of

the settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon

the said agreement and the draft, a notification was issued in the newspapers. The last date for responding

to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held.

A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel

was to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the

said letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second

agreement dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was

to be given, “to all eligible temporary employees for permanent appointments. The appointments were

against the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the

enormity of the problem an extension of the currency of the panel, eligible temporary employees who have

been empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter,

“will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the

1st settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88

is the 3rd settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated

30.7.96 is 5th settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95

marked as Ex M5. That due to all these settlements which were extended by subsequent settlements

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8725

thereby created reasonable expectations in the list of the selected candidates arose with that it’s a

question of time their appointments or services would be regularized in the services of the bank. The

Workman was working with the bank on temporary basis was under the bonafide hope that sooner his

services will be regularized with the bank. He is thereby closed all his options elsewhere. It is needless

to point out that employing person to whom hope of employment in substantial terms was made is a facet

of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P ..

by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble

High Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement.

In view of the directions given by the High Court all candidates whose names appeared in the select

panels prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid

upto December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made

alive upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the

bank has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to

exigencies of circumstances and on account of the urgent need in its banks, it employed temporary

employees in subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the

nature of temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken

by the bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair

labour practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on

the other to ensure that benefits that a model employer will extend under various statutes to its employees

is not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

8726

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

constituted in this regard. The Government of India guidelines made it clear that all the public sector banks

may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned. The approach paper also specify at para 6(c) that the

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were also

considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect- that the panel of temporary employees and the panel of daily wage

employees will be operated to a particular period. Therefore, their cases will not be considered. The

Management herein relying upon this settlement in their impugned action. It is submitted that even the

settlement dated 9.1.1991 will not empower the management to terminate the services of the temporary

employees who are working in the bank services like the Workman herein as it does not specify the

termination of the employees. In fact there are so many vacancies wherein the Management has engaged

several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

High Court without considering the cases of the similarly situated candidates like the Workman herein. It

is submitted inspite of engaging fresh candidates as is now being done by the Management they would

have continued the similarly situated candidates like the Workman herein in the services of the bank and

consider their cases for absorption in view of the circulars issued by Central Government as well as the

directions of this Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued

by the Central Government, the Management should not have relied upon the settlement dated 9.1.1991.

Hence, the impugned action of the Management is illegal, unjust, violative of fundamental rights such as

Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties

and sought for absorption. Such employees in the bank services on permanent basis before the date fixed

for carrying out the terms of settlement, the Court held that the members of the union had been empanelled

in the list, they were not regularized and the time was going to run out to the near future and the

Respondent bank and its officers cannot escape from the liability of enforcing the settlement which has

been reached and therefore directed that the bank and the officers shall implement the settlement dated

17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8727

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the candidates

with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to their own guidelines and violative

of the constitutional provisions which are guaranteed in Chapter-III of the Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-

called Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees

like the Workman by virtue of an impugned oral proceedings without implementing the settlement would

be illegal and unfair labour practice which cannot be allowed to be perpetuated. That the discontinuance of

the Workman after 31.3.97 who had served in the bank in any capacity amounts to retrenchment. It could

not have been done without any notice and it violates Sec.25FF of the Industrial Disputes Act, 1947 and

the said action is violative of principles of natural justice guaranteed under Chapter III of the Constitution

of India. This amounts to retrenchment without one month's notice and taken in view of such notice.

Thus, the main proceedings issued by the Respondent is without jurisdiction and is arbitrary, illegal and

therefore liable to be quashed. That the alleged Memorandum of Understanding dated 27.2.97, Ex.M5

does not own any legal entity, as the said Memorandum of Understanding is not published anywhere to

brought to the notice of the Workman whose rights are being affected. It is submitted that Management did

not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the

year 1995. The same was not followed in the year 1997 despite there being vacancies. The

management has followed the procedure of calling candidates through Employment exchange instead of

giving chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the

Respondent Management sent letters to the all similarly situated candidates like the Workman in the month

of June, 1997, subsequent to the passing of impugned termination orders. After knowing the facts that the

candidates are litigating, the Management refused to engage these candidates. It is once again reiterated

that the panels are meant for absorption but not for termination. It was the duty of the Management to

engage the empanelled candidates like the Workman even in temporary vacancies till they are absorbed

permanently in regular vacancies. Hence, the action of the Respondent Management terminating the

services of the Workman by oral order dated 31.3.97 is unjust, illegal, violative of principles of natural

justice and hence, the Management be directed to reinstate and absorb the Workman and to grant all

incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-

ordinate staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the

restrictions imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent

bank used to engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc.,

depending on the availability of work on purely temporary basis for the smooth and uninterrupted

functioning of the branches. It is submitted that the All India State Bank of India Staff Federation which

represents majority of the employees in the State Bank of India comprising about 98% of the work force as

its' members espoused the cause of temporary employees who have put in less than 240 days of temporary

service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

temporary employees as categorized would be given a chance for being considered for permanent

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear that

8728

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

all the public sector banks may follow the provisions laid down in the approach paper. The approach paper

specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit of

Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in

12 consecutive months or less, a settlement could be avoided and however if the Management so desired

they could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned

that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged

for a settlement in respect of employees who had put in temporary service of 90 days or more days, the

bank by way of a further concession entered into settlements. Even in respect of those who had put in less

than 90 days and also the bank went a step further and said those persons who are working after 1975 were

also considered. Hence, there was a genuine effort on the part of the Respondent bank to provide as many

as possible jobs subject to the availability of the vacancies. However, para 6 (k) of the approach paper

made it clear that it is a one time, exercise in full and final, settlement of all the claims and disputes for the

past period, in respect of temporary workmen covered by the settlement. Another settlement was entered

on 9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and separate

panel was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies

arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers,

they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

absorption.These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees. The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. The Management bank has not violated any of

the provisions of the terms of the said settlement. That the very preparation and maintenance of panel is

in compliance of the terms agreed under these settlements. These settlements were time bound and they

ceased to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8729

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management. Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

permanent through back door entry, which would not only be contrary to the settlements but also to

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge.

Thereafter the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the

Hon'ble Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore,

reference to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the

same has already been set aside. The observations made in the Judgements cannot be relied upon for any

purpose what so ever. The question of operation of Sec.25F would not come into play. Further the issue is

covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts.

Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and no documents in

evidence filed by the Petitioner.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has

exhibited 2 documents, marked as Ex.M1 to M2. The details of these documents are as follows:-

Ex.M.1 is the working days particulars of workman. Ex.M2 is the printed book containing settlement

between the staff federation and Management for regularization of services of the temporary employees

and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list

of various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

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[PART II—SEC. 3(ii)]

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri

Mutyala Srihari, a Non-Messenger with effect from 31.3.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid 5th

settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from 1.4.1997. The extract of the said

letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

1.4.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997

as per terms of settlements entered into by both parties. Further, the contents of the subsequent letter dated

27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank of India not

to make any temporary messengerial category appointment with effect from 1.4.1997 and it has also been

communicated to all concerned that the panels of temporary employees and daily wagers maintained by

Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been issued by

Respondent management that goes to reveal that the said office order has been issued to this effect that,

[भाग II— ण् ड 3(ii)]

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8731

“Consequent on absorption of temporary employees in permanent cadre, it has been decided by the

competent authority that no one onwards, no further daily labour or temporary employees/appointments

should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the aforesaid orders

that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers

and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in

the 5th settlement which has been arrived at between the parties on dated 30.7.1996 with the consensus of

both the parties. Therefore, Workman can not challenge the terms and conditions contained in settlement

dated 30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India and State

Bank of India Staff Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said Agreement

dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before

a competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing

the date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

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[PART II—SEC. 3(ii)]

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

Workmen and the Workman as individual do not come into picture. Workman in the instant case has

work as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be

utilized for absorption of such Workman to permanent post in order of their seniority in the list. The

Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation

under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel

list is allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both

the panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of

vacancy of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management

of State Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in

lieu thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this

context, the Workman has examined himself as WW1 who has reiterated that Workman has been

terminated from service by Respondent on 31.3.1997 without notice of salary or compensation in lieu

thereof. Before examining the claim of the Workman on merit it would be apposite to reproduce the

provision contained under section 25 F:-

Section 25F provides:-

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8733

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

conclusion that 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 period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

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 ..”

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[PART II—SEC. 3(ii)]

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., 31.3.1997. The witness WW1 in chief examination has stated that he had worked for 150

days in the said branch in the year 1987. Further, witness states, “It is pertinent to state that I have

worked for 509 days during 1986 in the bank and for which the service certificates are enclosed. I have

been not given more than 200 days in any calendar year inspite of heavy work load and just to avoid us to

get regularised. The bank calculations of ½ and 3/4 days are wrong. This squarely an unfair labour

practice.” As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner has to

adduce the evidence of continuous service of 240 days in a calendar year just preceding from the date of

his termination i.e., 31st March 1997. But as per the chief statement of witness WW1, he had worked

continuously for 150 days in the branch in the year 1986. Further, witness has stated that he had worked

for 150 days during 1986 in the bank. Further, Petitioner witness has not adduced any evidence that he

had worked for 240 days continuously in a calendar year of 12 months just preceding from the date of his

termination i.e., 31st March 1997. However, no document in evidence filed by the Petitioner to

corroborate the averment of the claim statement to prove by the statement of WW1 or any other witness’s

evidence. No single certificate of working days was filed by the Petitioner to support the claim of the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8735

Petitioner that he had worked for 240 days continuously in a calendar year just preceding from the date of

his termination ie., 31st March 97. Therefore, the claim of the Petitioner that he has been terminated in

contravention of provision contained under section 25 F of the Act is not corroborated by his oral or

documentary evidence. Thus, it is clear from the testimony of WW1 that the Workman had not worked

for 240 days continuously in any 12 months of a calendar year just preceding from the date of his

termination in the Respondent bank. Therefore, Workman failed to establish his plea by his oral and

documentary evidence that he had worked for 240 days continuously in calendar year just preceding from

the date of his termination i.e., 31.3.1997. Thus, the claim of the Workman that he has been terminated

by oral order without issuing notice or payment in lieu after termination, in contravention of Section 25 F

of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the Workman in support

of his claim, number of days worked with the Respondent goes to reveal that the Workman had worked

intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger

in the Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the

force in the argument advanced by the Respondent that in the instant matter, Workman was not terminated

from service by order dated 31.3.1997 rather he was disengaged in view of the non-availability of the

work in the branch. Further, there was direction issued by the Head Office of the Respondent authority

not to engage any daily wager Workman/ temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of

Workman does not amount to termination. Moreover, the Workman failed to prove his claim that he was

terminated in contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to establish his plea

by any oral or documentary evidence that he had worked for 240 days continuously in a twelve months of

calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees

of 1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central

office not to make any temporary appointments in messengerial cadre from 1.4.1997, therefore it was

directed to issue suitable instructions not to make temporary appointments from 1.4.1997.There is no

mention in this order that the Workman herein has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is directed

to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these circulars

do not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent

bank by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the

Workman that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997

from the service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes

to reveal that he had worked as a daily wager for which he has been paid wages according to number of

working days. As there was an order for prohibition for engaging temporary workmen, in the bank,

therefore, Workman could not be engaged by the Respondent for work from 1.4.1997 and there after. It

is settled law that the daily wagers are engaged by the employer depending upon the availability of work

and as the work was not available the Workman was not engaged further by the Respondent management.

Therefore, the Workman on the ground of number of days he had worked in the Respondent bank cannot

claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

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[PART II—SEC. 3(ii)]

disengagement of Workman from work can not be termed in contravention of provision contained under

Sec.25F and 25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and

that thereafter the said panels would lapse. It was also agreed that within the framework of the above

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further,

Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by central office and thereby 403

messengerial vacancies were sanctioned to the circle of the Management bank and it was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time

non-messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties.

It is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot

be extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8737

in view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As

the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have

held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion

and finding given at Point No. I regardingbinding nature of Settlements and terms and conditions

enumerated therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the

considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and

plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no legal

force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies

falls upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to

the permanent post were seniors in number of working days in panel list and Workman herein was junior

to those workmen. Therefore, Workman could not be given absorption to permanent post being junior to

other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence

that, “It is not true to say that bank has removed the Workman from service by taking care to see that he

did not complete 240 days of the service continuously within a period of 12 months. The engagement of

the service of the workmen was need based and there is no continuous availability of leave vacancies for

engaging his services.” Although this witness was cross examined by the Petitioner but the above

statement of the management witness in chief remained uncontroverted, as the witness MW1 was not cross

examined by Petitioner on this point. Therefore, the claim of the Petitioner that he has been removed from

service by the management illegally is untenable. Further, witness MW1 in his chief statement has stated

that, the workman was engaged in leave vacancies in the bank on Temporary basis. This witness has

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[PART II—SEC. 3(ii)]

categorically stated that, “The last person whose services was regularised has completed 168 days of

employment during the crucial period as per settlement whereas the Workman herein worked for 150 days

during that period.” This statement of witness MW1 remained uncontroverted as the Petitioner did not

cross examine the witness MW1 on this point.Therefore, the Petitioner Workman as per number of

working days, failed to fulfil eligibility criteria of working days as required for regularisation. Therefore,

he was not given regularisation in the employment of the Respondent. Moreover, the Workman witness

WW1 in his cross examination has admitted the fact that he do not know whether any junior to him were

regularised in the services. Further, WW1 states that he do not know particulars of the settlement reached

between the management and staff union. Therefore, in view of the statement of WW1 in cross

examination, the claim of the Petitioner that he was refused regularization by the Respondent management

illegally, is untenable. Thus, from the above statement of the Workman witness WW1 it is clear that the

panel was prepared in terms of various settlements entered into between Staff Federation of State Bank of

India and State Bank of India and it was prepared on the basis of number of days of work put in by the

temporary employees. Further, the Workman himself admitted that some of the temporary employees

whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel and he is not having any document to show that any person who worked for less

number of days than the Workman was given appointment in the bank. Therefore, the allegation of the

Workman that the regular appointment has been made by the bank from the panel list in breach of the

terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1.

Thus, there is no evidence on record that bank has given the appointment to the temporary employees as

well as daily wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees

in the list. There is no evidence of jumbling in the panel list to make appointment of any permanent

Workman in breach of the seniority. Therefore, I am constrained to hold that the Respondent Management

has appointed the workmen from panel list in order of seniority and there is no jumbling of workmen in

the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse

of panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim

of Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is

relevant therein Hon’ble Supreme Court have has laid down principle regarding regularization of the

Workman on permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization

of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8739

labour practice by not filling up permanent posts even though such posts are available and by continuing

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman

failed to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies

were existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of

his seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also

not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross

examination has himself admitted this fact that, some of the temporary employees whose names were

included in the panel were given regular appointment in the bank in order of their seniority in the panel.

The Workman failed to show that there was any breach of terms of settlement has been committed by the

Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

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[PART II—SEC. 3(ii)]

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the

authorities must consider his case for regularization provided he is eligible and qualified according to the

rules and his service record is satisfactory and his appointment does not run counter to the reservation

policy of the state.”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8741

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and

MW1 in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991

were entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to

1994 for those temporary employees who has worked on scale wages. Further, MW1 states that two

different panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank.

There are four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and

Visakhapatnam. MW1states that the temporary employees so empanelled were given permanent absorption

depending upon the vacancies so arise strictly in terms of the settlement. MW1 states that on 9.6.1995

conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it was decided

that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and

All India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in

respect of subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be

considered against vacancies arising from January 1995 to December 1996, thereafter the said panels lapse.

MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including part

time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be

filled before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed

on 1.4.1997. Further, witness states that on 27.2.1997 a memorandum of understanding was reached

between the SBI and SBI Staff Federation providing that both the panels above mentioned will lapse on

31.3.1997. Ex.M2 contains, Memorandum of understanding and statements giving the particulars of 1989

non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel. Further,

witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the

agreements. All the appointments were made strictly in accordance with the settlements reached from time

to time between SBI and SBI staff federation and as per seniority, number of days of temporary service

put in by them in the bank in the given period. Further, MW1 states petitioner was not sponsored by any

employment exchange he did not undergo the regular process of selection required for appointment as a

regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the

bank. Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees

from the panels and these panels were expired in terms of the settlements so reached and there were no

vacancies to absorb such employees. Thus, witness MW1 has proved the documents Ex.M1 and Ex.M2

and also contentions made in the counter. However, MW1 was cross examined by the Petitioner Counsel.

But nothing has been elicited in his cross examination so as to discredit the testimony of the witness

MW1 as regards the date of lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption

of the Petitioner from the panel list to the permanent post. Moreover the witness MW1 was re-examined

by the Respondent and the witness MW1 states that panels were expired in terms of the settlement send

absorptions to the extent of the available vacancies were made. There was no termination of any temporary

messenger as such but their services were not utilized after the cut off date as the available vacancies were

already filled up and most of these Petitioners were not in the service of the bank as on the date of the

expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled

for absorption in permanent post in the branch of Respondent Management on the basis of panel list is

found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the

Workman is not entitled for any relief and claim statement of Workman sans merit and liable to be

dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri Mutyala Srihari, Ex. Non-Messenger by way of oral orders w.e.f. 1.4.1997 is justified.

8742

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Hence, the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman

sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 18th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Mutyala Srihari

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

Ex.M1:

Photocopy of statement showing no. of working days of Petitioner

Ex.M2:

Photocopy of printed book containing settlement between the staff federation and

Management for regularization of services of the temporary employees and casual

employees.

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1708.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सि

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल

सं्‍ ा 72/2003) dks izdkf”kr djrh gS]

[la- ,y-39025/01/2026-vkbZ-vkj-( बी-II)-79]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1708.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.72/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[ No. L-39025/01/2026- IR (B-II)- 79]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 19th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 72/2003

Between:

Sri K. Lazar,

S/o K. Osrayalu,

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8743

Tadepalligudem P.O.

… Petitioner

And

The Dy. General Manager,

State Bank of India,

Zonal Office,

Visakhapatnam.

…..Respondent

Appearances:

For the Petitioner :

Sri B. Vikas, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri K. Lazar who worked as Messenger (who will be referred to as the workman) has filed this petition

under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1986 to 1997, and has rendered

unblemished service spreading over a period of about 7 years. The Respondent has terminated services of Workman

by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent bank decided

to give a chance to temporarily employed personnel “found suitable for permanent appointment” by wait- listing them

by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8745

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

8746

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies. The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8747

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

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[PART II—SEC. 3(ii)]

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and no documents in evidence filed

by the Petitioner.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

2 documents, marked as Ex.M1 to M2. The details of these documents are as follows:-

Ex.M.1 is the working days particulars of workman. Ex.M2 is the printed book containing settlement between the

staff federation and Management for regularization of services of the temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri K. Lazar, a

Messenger with effect from 31.3.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

[भाग II— ण् ड 3(ii)]

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25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

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[PART II—SEC. 3(ii)]

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8751

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

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In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997. The

witness WW1 in chief examination has stated that he had worked for 61 days in the said branch in the year 1986.

Further, witness states, “It is pertinent to state that I have worked for 198 days during 1986 in the bank and for

which the service certificates are enclosed. I have been not given more than 200 days in any calendar year inspite of

heavy work load and just to avoid us to get regularised. The bank calculations of ½ and 3/4 days are wrong. This

squarely an unfair labour practice.” As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the

Petitioner has to adduce the evidence of continuous service of 240 days in a calendar year just preceding from the

date of his termination i.e., 31st March 1997. But as per the chief statement of witness WW1, he had worked

continuously for 61 days in the branch in the year 1986. Further, witness has stated that he had worked for 261 days

during 1986 in the bank. Further, Petitioner witness has not adduced any evidence that he had worked for 240 days

continuously in a calendar year of 12 months just preceding from the date of his termination i.e., 31st March 1997.

However, no document in evidence filed by the Petitioner to corroborate the averment of the claim statement is

proved by the statement of WW1 or any other witness’s evidence. No single certificate of working days was filed

by the Petitioner to support the claim of the Petitioner that he had worked for 240 days continuously in a calendar

year just preceding from the date of his termination ie., 1.4. 97. Therefore, the claim of the Petitioner that he has been

terminated in contravention of provision contained under section 25 F of the Act is not corroborated by his oral or

documentary evidence. Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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continuously in any 12 months of a calendar year just preceding from the date of his termination in the Respondent

bank. Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked for

240 days continuously in calendar year just preceding from the date of his termination i.e., 1.4.1997. Thus, the claim

of the Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination,

in contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

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[PART II—SEC. 3(ii)]

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8755

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “It is

not true to say that bank has removed the Workman from service by taking care to see that he did not complete 240

days of the service continuously within a period of 12 months. The engagement of the service of the workmen was

need based and there is no continuous availability of leave vacancies for engaging his services.” Although this

witness was cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the

Petitioner that he has been removed from service by the management illegally is untenable. Further, witness MW1

in his chief statement has stated that, the workman was engaged in leave vacancies in the bank on Temporary basis.

This witness has categorically stated that, “The last person whose services was regularised has completed days of

employment during the crucial period as per settlement whereas the Workman herein worked for 30 days during that

period.” This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the witness

MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil eligibility

criteria of working days as required for regularisation. Therefore, he was not given regularisation in the employment

of the Respondent. Moreover, the Workman witness WW1 in his cross examination has admitted the fact that he do

not know whether any junior to him were regularised in the services. Further, WW1 states that he do not know

particulars of the settlement reached between the management and staff union. Therefore, in view of the statement of

WW1 in cross examination, the claim of the Petitioner that he was refused regularization by the Respondent

management illegally, is untenable. Thus, from the above statement of the Workman witness WW1 it is clear that

the panel was prepared in terms of various settlements entered into between Staff Federation of State Bank of India

and State Bank of India and it was prepared on the basis of number of days of work put in by the temporary

employees. Further, the Workman himself admitted that some of the temporary employees whose names were

included in the panel were given regular appointment in the bank in order of their seniority in the panel and he is not

having any document to show that any person who worked for less number of days than the Workman was given

appointment in the bank. Therefore, the allegation of the Workman that the regular appointment has been made by

the bank from the panel list in breach of the terms of the settlement and violation of seniority of panel list is not

proved by this evidence of WW1. Thus, there is no evidence on record that bank has given the appointment to the

temporary employees as well as daily wagers from the panel list 1989 and 1992 in breach of seniority of the

temporary employees in the list. There is no evidence of jumbling in the panel list to make appointment of any

permanent Workman in breach of the seniority. Therefore, I am constrained to hold that the Respondent

Management has appointed the workmen from panel list in order of seniority and there is no jumbling of workmen

in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

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[PART II—SEC. 3(ii)]

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

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[PART II—SEC. 3(ii)]

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All

India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of

subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be considered against

vacancies arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also

agreed that all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such

posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus

in both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a memorandum

of understanding was reached between the SBI and SBI Staff Federation providing that both the panels above

mentioned will lapse on 31.3.1997. Ex.M2 contains, Memorandum of understanding and statements giving the

particulars of 1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel.

Further, witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time between SBI

and SBI staff federation and as per seniority, number of days of temporary service put in by them in the bank in the

given period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo

the regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents Ex.M1 and Ex.M2 and

also contentions made in the counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing

has been elicited in his cross examination so as to discredit the testimony of the witness MW1 as regards the date of

lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to

the permanent post. Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states

that panels were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized after the cut

off date as the available vacancies were already filled up and most of these Petitioners were not in the service of the

bank as on the date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-

examination in the absence of cross examination remained uncontraverted, the claim of the Workman that he was

entitled for absorption in permanent post in the branch of Respondent Management on the basis of panel list is found

not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri K. Lazar, Ex. Messenger by way of oral orders w.e.f. 1.4.1997 is justified. Hence, the Petitioner is

not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 19th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8759

WW1: Sri K. Lazar

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

Ex.M1:

Photocopy of statement showing no. of working days of Petitioner

Ex.M2:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1709. — vkS|ksfxd fookn vf/kfu;e] 1947(1947 dk 14)dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सि

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल

सं्‍ ा 80/2003) dks izdkf”kr djrh gS]

[la- ,y-39025/01/2026-vkbZ-vkj-( बी-II)-80]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1709.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.80/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)- 80]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 19th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 80/2003

Between:

Sri G. Srinivas,

S/o G. Venkata Ramana,

Gannavaram, Near Kona Cheruve.

Krishna Distt..

… Petitioner

And

The Dy. General Manager,

State Bank of India,

Zonal Office,

Visakhapatnam.

…..Respondent

Appearances:

For the Petitioner :

Sri B. Vikas, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

8760

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

AWARD

Sri G. Srinivas who worked as Messenger (who will be referred to as the workman) has filed this petition

under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 7.7.87 to 1997, and has rendered

unblemished service spreading over a period of about 7 years. The Respondent has terminated services of Workman

by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent bank decided

to give a chance to temporarily employed personnel “found suitable for permanent appointment” by wait- listing them

by offering permanent appointment or waitlisting till such opportunity arises.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8761

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8762

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8763

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies. The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

8764

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered

into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8765

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and no documents in evidence filed

by the Petitioner.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

2 documents, marked as Ex.M1 to M2. The details of these documents are as follows:-

Ex.M.1 is the working days particulars of workman. Ex.M2 is the printed book containing settlement between the

staff federation and Management for regularization of services of the temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri G. Srinivas, a

Messenger with effect from 1.4.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

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[PART II—SEC. 3(ii)]

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8767

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1.4.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

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[PART II—SEC. 3(ii)]

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

1.4.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8769

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 1.4.1997 . The

witness WW1 in chief examination has stated that he had worked for 70 days in the said branch in the year 1988.

Further, witness states, “It is pertinent to state that I have worked for 224 days during 1995 in the bank and for which

the service certificates are enclosed. I have been not given more than 200 days in any calendar year inspite of heavy

work load and just to avoid us to get regularised. The bank calculations of ½ and 3/4 days are wrong. This squarely

an unfair labour practice.” As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner

has to adduce the evidence of continuous service of 240 days in a calendar year just preceding from the date of his

termination i.e., 1.4.1997. But as per the chief statement of witness WW1, he had worked continuously for 70 days

in the branch in the year 1988. Further, witness has stated that he had worked for 224 days during 1986 in the bank.

Further, Petitioner witness has not adduced any evidence that he had worked for 240 days continuously in a calendar

year of 12 months just preceding from the date of his termination i.e., 1.4.1997. However, no document in evidence

filed by the Petitioner to corroborate the averment of the claim statement is proved by the statement of WW1 or any

other witness’s evidence. No single certificate of working days was filed by the Petitioner to support the claim of

the Petitioner that he had worked for 240 days continuously in a calendar year just preceding from the date of his

termination ie., 1.4.97. Therefore, the claim of the Petitioner that he has been terminated in contravention of

provision contained under section 25 F of the Act is not corroborated by his oral or documentary evidence. Thus, it

is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12 months

of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore, Workman

failed to establish his plea by his oral and documentary evidence that he had worked for 240 days continuously in

calendar year just preceding from the date of his termination i.e., 1.4.1997. Thus, the claim of the Workman that he

has been terminated by oral order without issuing notice or payment in lieu after termination, in contravention of

Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the Workman in

support of his claim, number of days worked with the Respondent goes to reveal that the Workman had worked

intermittently as daily wager depending upon availability of work in branch. Workman did not file any document of

appointment letter or salary slips in support of his claim for appointment as a non-messenger in the Respondent

branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

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[PART II—SEC. 3(ii)]

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1.4.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 1.4.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8771

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

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[PART II—SEC. 3(ii)]

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “It is

not true to say that bank has removed the Workman from service by taking care to see that he did not complete 240

days of the service continuously within a period of 12 months. The engagement of the service of the workmen was

need based and there is no continuous availability of leave vacancies for engaging his services.” Although this

witness was cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the

Petitioner that he has been removed from service by the management illegally is untenable. Further, witness MW1

in his chief statement has stated that, the workman was engaged in leave vacancies in the bank on Temporary basis.

This witness has categorically stated that, “The last person whose services was regularised has completed 175 days of

employment during the crucial period as per settlement whereas the Workman herein worked for 70 days during that

period.” This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the witness

MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil eligibility

criteria of working days as required for regularisation. Therefore, he was not given regularisation in the employment

of the Respondent. Moreover, the Workman witness WW1 in his cross examination has admitted the fact that he do

not know whether any junior to him were regularised in the services. Further, WW1 states that he do not know

particulars of the settlement reached between the management and staff union. Therefore, in view of the statement of

WW1 in cross examination, the claim of the Petitioner that he was refused regularization by the Respondent

management illegally, is untenable. Thus, from the above statement of the Workman witness WW1 it is clear that

the panel was prepared in terms of various settlements entered into between Staff Federation of State Bank of India

and State Bank of India and it was prepared on the basis of number of days of work put in by the temporary

employees. Further, the Workman himself admitted that some of the temporary employees whose names were

included in the panel were given regular appointment in the bank in order of their seniority in the panel and he is not

having any document to show that any person who worked for less number of days than the Workman was given

appointment in the bank. Therefore, the allegation of the Workman that the regular appointment has been made by

the bank from the panel list in breach of the terms of the settlement and violation of seniority of panel list is not

proved by this evidence of WW1. Thus, there is no evidence on record that bank has given the appointment to the

temporary employees as well as daily wagers from the panel list 1989 and 1992 in breach of seniority of the

temporary employees in the list. There is no evidence of jumbling in the panel list to make appointment of any

permanent Workman in breach of the seniority. Therefore, I am constrained to hold that the Respondent

Management has appointed the workmen from panel list in order of seniority and there is no jumbling of workmen

in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8773

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8775

India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of

subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be considered against

vacancies arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also

agreed that all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such

posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus

in both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a memorandum

of understanding was reached between the SBI and SBI Staff Federation providing that both the panels above

mentioned will lapse on 31.3.1997. Ex.M2 contains, Memorandum of understanding and statements giving the

particulars of 1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel.

Further, witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time between SBI

and SBI staff federation and as per seniority, number of days of temporary service put in by them in the bank in the

given period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo

the regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents Ex.M1 and Ex.M2 and

also contentions made in the counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing

has been elicited in his cross examination so as to discredit the testimony of the witness MW1 as regards the date of

lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to

the permanent post. Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states

that panels were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized after the cut

off date as the available vacancies were already filled up and most of these Petitioners were not in the service of the

bank as on the date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-

examination in the absence of cross examination remained uncontraverted, the claim of the Workman that he was

entitled for absorption in permanent post in the branch of Respondent Management on the basis of panel list is found

not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri G. Srinivas, Ex. Messenger by way of oral orders w.e.f. 1.4.1997 is justified. Hence, the Petitioner is

not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 19th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri G. Srinivas

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

Ex.M1:

Photocopy of statement showing no. of working days of Petitioner

8776

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Ex.M2:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1710.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सह

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल

सं्‍ ा 81/2003) dks izdkf”kr djrh gS]

[la- ,y-39025/01/2026-vkbZ-vkj-( बी-II) - 81]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1710.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.81/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)- 81]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 19th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 81/2003

Between:

Sri A. Nara Singa Rao,

S/o Satyanranayana,

D.No.58-1-254,

Ganesh Nagar,

Near NAD Kotha Road,

Visakhapatnam – 530 009.

… Petitioner

And

The Dy. General Manager,

State Bank of India,

Zonal Office,

Visakhapatnam.

…..Respondent

Appearances:

For the Petitioner :

Sri B. Vikas, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8777

AWARD

Sri A. Nara Singa Rao who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the aggrieved

Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble High Court of

Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and

set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central

Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of

India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive vacancy arises.

This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch petitions was

challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of 2014. The

aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High Court of

Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was

pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1.1.86 to 1997, and has rendered

unblemished service. The Respondent has terminated services of Workman by oral orders with effect from 1.4.1997.

Further, it is submitted that the management of Respondent bank decided to give a chance to temporarily employed

personnel “found suitable for permanent appointment” by wait- listing them by offering permanent appointment or

waitlisting till such opportunity arises.

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[PART II—SEC. 3(ii)]

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High court

of A.P . by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High Court also

recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the directions

given by the High Court all candidates whose names appeared in the select panels prepared on the basis of the

agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8779

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned that

only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

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[PART II—SEC. 3(ii)]

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices and

terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without jurisdiction

and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of Understanding dated

27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is not published anywhere

to brought to the notice of the Workman whose rights are being affected. It is submitted that Management did not

adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled candidates

like the Workman here. It is pertinent to mention here that the Respondent Management sent letters to the all

similarly situated candidates like the Workman in the month of June, 1997, subsequent to the passing of impugned

termination orders. After knowing the facts that the candidates are litigating, the Management refused to engage these

candidates. It is once again reiterated that the panels are meant for absorption but not for termination. It was the duty

of the Management to engage the empanelled candidates like the Workman even in temporary vacancies till they are

absorbed permanently in regular vacancies. Hence, the action of the Respondent Management terminating the

services of the Workman by oral order dated 31.3.97 is unjust, illegal, violative of principles of natural justice and

hence, the Management be directed to reinstate and absorb the Workman and to grant all incidental and consequential

benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement. A

3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow the

provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in 12

consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8781

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned

that only those temporary employees who had put in temporary service of 90 days or more days after 1.1.82 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 days or more days, the bank by way of a further concession

entered into settlements. Even in respect of those who had put in less than 90 days and also the bank went a step

further and said those persons who are working after 1975 were also considered. Hence, there was a genuine effort on

the part of the Respondent bank to provide as many as possible jobs subject to the availability of the vacancies.

However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final, settlement of

all the claims and disputes for the past period, in respect of temporary workmen covered by the settlement. Another

settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and

separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies arising

between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers, they can be

considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were prepared

zone-wise separately for messengers and non-messengers in the descending order of temporary service put in by the

candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the Regional

Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

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[PART II—SEC. 3(ii)]

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and no documents in evidence filed

by the Petitioner.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

2 documents, marked as Ex.M1 to M2. The details of these documents are as follows:-

Ex.M.1 is the working days particulars of workman. Ex.M2 is the printed book containing settlement between the

staff federation and Management for regularization of services of the temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri A. Nara

Singa Rao, a Messenger with effect from 1.4.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

[भाग II— ण् ड 3(ii)]

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18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

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[PART II—SEC. 3(ii)]

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1.4.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8785

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

1.4.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

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[PART II—SEC. 3(ii)]

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 1.4.1997. The

witness WW1 in chief examination has stated that he had worked for 74 days in the said branch in the year 1986.

Further, witness states, “It is pertinent to state that I have worked for 1050 days during in the bank and for which the

service certificates are enclosed. I have been not given more than 200 days in any calendar year inspite of heavy

work load and just to avoid us to get regularised. The bank calculations of ½ and 3/4 days are wrong. This squarely

an unfair labour practice.” As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner

has to adduce the evidence of continuous service of 240 days in a calendar year just preceding from the date of his

termination i.e., 1.4.1997. But as per the chief statement of witness WW1, he had worked continuously for 74 days

in the branch in the year 1988. Further, witness has stated that he had worked for 1050 days in the bank. Further,

Petitioner witness has not adduced any evidence that he had worked for 240 days continuously in a calendar year of

12 months just preceding from the date of his termination i.e., 1.4.1997. However, no document in evidence filed by

the Petitioner to corroborate the averment of the claim statement is proved by the statement of WW1 or any other

witness’s evidence. No single certificate of working days was filed by the Petitioner to support the claim of the

Petitioner that he had worked for 240 days continuously in a calendar year just preceding from the date of his

termination ie., 1.4.97. Therefore, the claim of the Petitioner that he has been terminated in contravention of

provision contained under section 25 F of the Act is not corroborated by his oral or documentary evidence. Thus, it

is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12 months

of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore, Workman

failed to establish his plea by his oral and documentary evidence that he had worked for 240 days continuously in

calendar year just preceding from the date of his termination i.e., 1.4.1997. Thus, the claim of the Workman that he

has been terminated by oral order without issuing notice or payment in lieu after termination, in contravention of

Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the Workman in

support of his claim, number of days worked with the Respondent goes to reveal that the Workman had worked

intermittently as daily wager depending upon availability of work in branch. Workman did not file any document of

appointment letter or salary slips in support of his claim for appointment as a non-messenger in the Respondent

branch on temporary basis.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1.4.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there was

direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/ temporary

Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination. Moreover, the

Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of the I.D. Act,

1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240 days

continuously in a twelve months of calendar year just preceding from date of termination i.e., 1.4.1997 .

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

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[PART II—SEC. 3(ii)]

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the Federation

and the Management that both the panels of temporary employees and daily wagers /casual labour would be kept alive

upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from both the lists

concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute is filed as a

material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed between the

Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial

Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter may be

referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is allowed

to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent management

was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given

chance to the permanent post were seniors in number of working days in panel list and Workman herein was junior

to those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “It is

not true to say that bank has removed the Workman from service by taking care to see that he did not complete 240

days of the service continuously within a period of 12 months. The engagement of the service of the workmen was

need based and there is no continuous availability of leave vacancies for engaging his services.” Although this witness

was cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the

Petitioner that he has been removed from service by the management illegally is untenable. Further, witness MW1 in

his chief statement has stated that, the workman was engaged in leave vacancies in the bank on Temporary basis.

This witness has categorically stated that, “The last person whose services was regularised has completed 97 days of

employment during the crucial period as per settlement whereas the Workman herein worked for 74 days during that

period.” This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the witness

MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil eligibility

criteria of working days as required for regularisation. Therefore, he was not given regularisation in the employment

of the Respondent. Moreover, the Workman witness WW1 in his cross examination has admitted the fact that he do

not know whether any junior to him were regularised in the services. Further, WW1 states that he do not know

particulars of the settlement reached between the management and staff union. Therefore, in view of the statement of

WW1 in cross examination, the claim of the Petitioner that he was refused regularization by the Respondent

management illegally, is untenable. Thus, from the above statement of the Workman witness WW1 it is clear that the

panel was prepared in terms of various settlements entered into between Staff Federation of State Bank of India and

State Bank of India and it was prepared on the basis of number of days of work put in by the temporary employees.

Further, the Workman himself admitted that some of the temporary employees whose names were included in the

panel were given regular appointment in the bank in order of their seniority in the panel and he is not having any

document to show that any person who worked for less number of days than the Workman was given appointment in

the bank. Therefore, the allegation of the Workman that the regular appointment has been made by the bank from the

panel list in breach of the terms of the settlement and violation of seniority of panel list is not proved by this

evidence of WW1. Thus, there is no evidence on record that bank has given the appointment to the temporary

employees as well as daily wagers from the panel list 1989 and 1992 in breach of seniority of the temporary

employees in the list. There is no evidence of jumbling in the panel list to make appointment of any permanent

Workman in breach of the seniority. Therefore, I am constrained to hold that the Respondent Management has

appointed the workmen from panel list in order of seniority and there is no jumbling of workmen in the panel list

before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

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[PART II—SEC. 3(ii)]

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8791

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court

have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All

India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of

subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be considered against

vacancies arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also

agreed that all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such

posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus

in both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a

memorandum of understanding was reached between the SBI and SBI Staff Federation providing that both the panels

above mentioned will lapse on 31.3.1997. Ex.M2 contains, Memorandum of understanding and statements giving

the particulars of 1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel.

Further, witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time between SBI

and SBI staff federation and as per seniority, number of days of temporary service put in by them in the bank in the

given period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo

the regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents Ex.M1 and Ex.M2 and

also contentions made in the counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing

has been elicited in his cross examination so as to discredit the testimony of the witness MW1 as regards the date of

lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to

the permanent post. Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states

that panels were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized after the cut

off date as the available vacancies were already filled up and most of these Petitioners were not in the service of the

bank as on the date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-

examination in the absence of cross examination remained uncontraverted, the claim of the Workman that he was

entitled for absorption in permanent post in the branch of Respondent Management on the basis of panel list is found

not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri A. Nara Singa Rao, Ex. Messenger by way of oral orders w.e.f. 1.4.1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 19th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri A. Nara Singa Rao

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

NIL

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8793

Documents marked for the Respondent

Ex.M1:

Photocopy of statement showing no. of working days of Petitioner

Ex.M2:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1711.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सि

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल

सं्‍ ा 71/2003) dks izdkf”kr djrh gS]

[la- ,y-39025/01/2026-vkbZ-vkj-( बी-II)-71]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1711.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.71/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)- 71]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 19th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 71/2003

Between:

Sri G. Ramesh Reddy,

S/o Ram Reddy,

30-1-210/2,

Allipuram South,

Jail Road, Visakhapatnam.

… Petitioner

And

The Dy. General Manager,

State Bank of India,

Zonal Office,

Visakhapatnam.

…..Respondent

Appearances:

For the Petitioner :

Sri B. Vikas, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri G. Ramesh Reddy who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the aggrieved

Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble High Court of

Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and

set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central

Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of

India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive vacancy arises.

This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch petitions was

challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of 2014. The

aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High Court of

Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was

pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1982 to 1997, and has rendered

unblemished service spreading over a period of about 12 years. The Respondent has terminated services of Workman

by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent bank decided

to give a chance to temporarily employed personnel “found suitable for permanent appointment” by wait- listing them

by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the list

of the selected candidates arose with that it’s a question of time their appointments or services would be regularized

in the services of the bank. The Workman was working with the bank on temporary basis was under the bonafide

hope that sooner his services will be regularized with the bank. He is thereby closed all his options elsewhere. It is

needless to point out that employing person to whom hope of employment in substantial terms was made is a facet of

Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High court

of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High Court also

recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the directions

given by the High Court all candidates whose names appeared in the select panels prepared on the basis of the

agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

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[PART II—SEC. 3(ii)]

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8797

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without jurisdiction

and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of Understanding dated

27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is not published anywhere

to brought to the notice of the Workman whose rights are being affected. It is submitted that Management did not

adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled candidates

like the Workman here. It is pertinent to mention here that the Respondent Management sent letters to the all

similarly situated candidates like the Workman in the month of June, 1997, subsequent to the passing of impugned

termination orders. After knowing the facts that the candidates are litigating, the Management refused to engage these

candidates. It is once again reiterated that the panels are meant for absorption but not for termination. It was the duty

of the Management to engage the empanelled candidates like the Workman even in temporary vacancies till they are

absorbed permanently in regular vacancies. Hence, the action of the Respondent Management terminating the

services of the Workman by oral order dated 31.3.97 is unjust, illegal, violative of principles of natural justice and

hence, the Management be directed to reinstate and absorb the Workman and to grant all incidental and consequential

benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement. A

3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

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[PART II—SEC. 3(ii)]

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8799

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and has filed photostat copies of three

documents in evidence which are marked as Ex.W1 to Ex.W3. Details of the documents are given as under:-

Ex.W1 is the service certificate. Ex.W2 is the newspaper notification. Ex.W3 is the panel list.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

2 documents, marked as Ex.M1 to M2. The details of these documents are as follows:-Ex.M.1 is the working days

particulars of workman. Ex.M2 is the printed book containing settlement between the staff federation and

Management for regularization of services of the temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri G. Ramesh

Reddy, a Messenger with effect from 1.4.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

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[PART II—SEC. 3(ii)]

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

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[PART II—SEC. 3(ii)]

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8803

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997. The

witness WW1 in chief examination has stated that he had worked for 90 days in the said branch in the year 1982.

Further, witness states, “It is pertinent to state that I have worked for 500 days during in the bank and for which the

service certificates are enclosed. I have been not given more than 200 days in any calendar year inspite of heavy

work load and just to avoid us to get regularised. The bank calculations of ½ and 3/4 days are wrong. This squarely

an unfair labour practice.” As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner

has to adduce the evidence of continuous service of 240 days in a calendar year just preceding from the date of his

termination i.e., 1st April, 1997. But as per the chief statement of witness WW1, he had worked continuously for 90

days in the branch in the year 1982. Further, witness has stated that he had worked for 90 days during 1982 in the

bank. Further, Petitioner witness has not adduced any evidence that he had worked for 240 days continuously in a

calendar year of 12 months just preceding from the date of his termination i.e., 31st March 1997. However, no

document in evidence filed by the Petitioner to corroborate the averment of the claim statement to prove by the

statement of WW1 or any other witness’s evidence. No single certificate of working days was filed by the Petitioner

to support the claim of the Petitioner that he had worked for 240 days continuously in a calendar year just preceding

from the date of his termination ie., 1st April, 1997. Therefore, the claim of the Petitioner that he has been terminated

in contravention of provision contained under section 25 F of the Act is not corroborated by his oral or documentary

evidence. Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously

in any 12 months of a calendar year just preceding from the date of his termination in the Respondent bank.

Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240

days continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of

the Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

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[PART II—SEC. 3(ii)]

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8805

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

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[PART II—SEC. 3(ii)]

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “It is

not true to say that bank has removed the Workman from service by taking care to see that he did not complete 240

days of the service continuously within a period of 12 months. The engagement of the service of the workmen was

need based and there is no continuous availability of leave vacancies for engaging his services.” Although this

witness was cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the

Petitioner that he has been removed from service by the management illegally is untenable. Further, witness MW1

in his chief statement has stated that, the workman was engaged in leave vacancies in the bank on Temporary basis.

This witness has categorically stated that, “The last person whose services was regularised has completed 97 days of

employment during the crucial period as per settlement whereas the Workman herein worked for 90 days during that

period.” This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the witness

MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil eligibility

criteria of working days as required for regularisation. Therefore, he was not given regularisation in the employment

of the Respondent. Moreover, the Workman witness WW1 in his cross examination has admitted the fact that he do

not know whether any junior to him were regularised in the services. Further, WW1 states that he do not know

particulars of the settlement reached between the management and staff union. Therefore, in view of the statement of

WW1 in cross examination, the claim of the Petitioner that he was refused regularization by the Respondent

management illegally, is untenable. Thus, from the above statement of the Workman witness WW1 it is clear that

the panel was prepared in terms of various settlements entered into between Staff Federation of State Bank of India

and State Bank of India and it was prepared on the basis of number of days of work put in by the temporary

employees. Further, the Workman himself admitted that some of the temporary employees whose names were

included in the panel were given regular appointment in the bank in order of their seniority in the panel and he is not

having any document to show that any person who worked for less number of days than the Workman was given

appointment in the bank. Therefore, the allegation of the Workman that the regular appointment has been made by

the bank from the panel list in breach of the terms of the settlement and violation of seniority of panel list is not

proved by this evidence of WW1. Thus, there is no evidence on record that bank has given the appointment to the

temporary employees as well as daily wagers from the panel list 1989 and 1992 in breach of seniority of the

temporary employees in the list. There is no evidence of jumbling in the panel list to make appointment of any

permanent Workman in breach of the seniority. Therefore, I am constrained to hold that the Respondent

Management has appointed the workmen from panel list in order of seniority and there is no jumbling of workmen

in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8807

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court

have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8809

India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of

subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be considered against

vacancies arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also

agreed that all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such

posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus

in both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a memorandum

of understanding was reached between the SBI and SBI Staff Federation providing that both the panels above

mentioned will lapse on 31.3.1997. Ex.M2 contains, Memorandum of understanding and statements giving the

particulars of 1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel.

Further, witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time between SBI

and SBI staff federation and as per seniority, number of days of temporary service put in by them in the bank in the

given period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo

the regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents Ex.M1 and Ex.M2 and

also contentions made in the counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing

has been elicited in his cross examination so as to discredit the testimony of the witness MW1 as regards the date of

lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to

the permanent post. Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that

panels were expired in terms of the settlement send absorptions to the extent of the available vacancies were made.

There was no termination of any temporary messenger as such but their services were not utilized after the cut off

date as the available vacancies were already filled up and most of these Petitioners were not in the service of the bank

as on the date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-

examination in the absence of cross examination remained uncontraverted, the claim of the Workman that he was

entitled for absorption in permanent post in the branch of Respondent Management on the basis of panel list is found

not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri G. Ramesh Reddy, Ex. Messenger by way of oral orders w.e.f. 1.4.1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the

19th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri G. Ramesh Reddy

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

Ex.W1:

Photocopy of service certificate

Ex.W2:

Photocopy of interview call letter

Ex.W3:

Photocopy of panel list

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Documents marked for the Respondent

Ex.M1:

Photocopy of statement showing no. of working days of Petitioner

Ex.M2:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1712.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सह

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल

सं्‍ ा 96/2003) dks izdkf”kr djrh gS]

[la- ,y-39025/01/2026-vkbZ-vkj-( बी-II)-102]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1712.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award ( LC.No. 96/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)-102]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 30th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 96/2003

Between:

Sri K. Prabhakar Rao,

S/o K. Venkaiah,

R/o North Amuluru,

Kavali.Nellore Dist.

… Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8811

Hyderabad.

3.

The Branch Manager,

State Bank of India,

Kavali, Nellore distt.

…..Respondents

Appearances:

For the Petitioner :

M/s. S. Prasada Rao, Advocates

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri K. Prabhakar Rao who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the aggrieved

Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble High Court of

Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and

set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central

Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of

India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive vacancy arises.

This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch petitions was

challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of 2014. The

aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High Court of

Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased

to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

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[PART II—SEC. 3(ii)]

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1982 to March, 1997, and has

rendered unblemished service spreading over a period of about 11 years. The Respondent has terminated services of

Workman by oral orders with effect from March, 1997. Further, it is submitted that the management of Respondent

bank decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by

wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the years

1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the panel,

eligible temporary employees who have been empanelled could not appear in the earlier interviews and have been

pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under the

bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High Court

also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8813

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

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[PART II—SEC. 3(ii)]

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices and

terminated the services of the candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies. The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8815

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement. A

3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

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[PART II—SEC. 3(ii)]

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W4. Further, the Workman has filed photocopies of documents in support of

his claim which are discussed as under:-

Ex.W1 is the caste certificate. Ex.W2 is the service certificate. Ex.W3 is the transfer certificate. Ex.W4 is another

service certificate.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has exhibited

12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-Messengerial

Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court

of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP

No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8817

II.

Whether the action of State Bank of India, Kavali branch, in terminating the services of Workman

Sri K. Prabhakar Rao, a Messenger with effect from March, 1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.3.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.3.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

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[PART II—SEC. 3(ii)]

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8819

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on March, 1997 without issuing any notice or paying any salary or compensation in lieu

thereof. Therefore, the termination order of the Workman from service is in violation of provision contained Under

Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

March, 1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman

on merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., March, 1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange and did not undergo the regular process of selection before my

engagement as temporary messenger in the branch..”

“It is true that I did not work for 240 days in any year in my entire service in the bank in any branch.”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8821

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., March, 1997. Thus, the claim of

the Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated March, 1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.3.1997, therefore it was directed to issue suitable instructions not to

make temporary appointments from 31.3.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from March, 1997 and there after. It is settled law that the daily wagers are engaged by the employer depending

upon the availability of work and as the work was not available the Workman was not engaged further by the

Respondent management. Therefore, the Workman on the ground of number of days he had worked in the

Respondent bank cannot claim any right to reinstate him into the employment. As the Workman failed to prove the

mandatory condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life of

panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant case

the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8823

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is allowed

to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent management

was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given

chance to the permanent post were seniors in number of working days in panel list and Workman herein was junior

to those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross

examination the witness WW1 states:-

“Prior to my oral appointment in 1987 there was no notification.”

…”I used to work depending upon availability of work in the branch. I am not aware of the settlements between the

federation and the Management. …. Further witness states, “It is true that I am not having any documents to show

that any of my juniors are continuing in service in the bank.”

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of

various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was

prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself

admitted that some of the temporary employees whose names were included in the panel were given regular

appointment in the bank in order of their seniority in the panel and he is not having any document to show that any

person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the

allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of

the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,

there is no evidence on record that bank has given the appointment to the temporary employees as well as daily

wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no

evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.

Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in

order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

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[PART II—SEC. 3(ii)]

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8825

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court

have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

8826

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.3.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri K. Prabhakar Rao, Ex. Messenger by way of oral orders w.e.f. March, 1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 30th day of June, 2026.

IRFAN QAMAR, Presiding Officer

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8827

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Prabhakar Rao

MW1: Sri I.S. Appa Rao

Documents marked for the Petitioner

Ex.W1:

Photocopy of caste certificate

Ex.W2:

Photocopy of service certificate

Ex.W3:

Photocopy of transfer certificate

Ex.W4:

Photocopy of Service certificate

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1713.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सि

–

Je U;k;ky;] िजिराबाि ds iapkV (सन्िभल

सं्‍ ा 89/2003) dks izdkf”kr djrh gS]

[la- ,y-39025/01/2026-vkbZ-vkj-( बी-II)-103]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1713.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award ( LC.No. 89/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)-103]

SALONI, Deputy Director

8828

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 24th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 89/2003

Between:

Sri G. Srinivas Rao

S/o G. Nageshwar Rao,

D.No.9/294,

Pampula Cheruvu, Balarampet,

Machilipatnam.

….. Petitioner

And

The Dy. General Manager,

State Bank of India,

Zonal Office,

Vijayawada.

…..Respondent

Appearances:

For the Petitioner :

Sri B. Vikas, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri G. Srinivas Rao who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8829

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 20.9.1985 to 1.4.1997, and has

rendered unblemished service spreading over a period of about 12 years. The Respondent has terminated services of

Workman by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent

bank decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by

wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

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[PART II—SEC. 3(ii)]

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High court

of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High Court also

recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the directions

given by the High Court all candidates whose names appeared in the select panels prepared on the basis of the

agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8831

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary

to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies. The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were prepared

zone-wise separately for messengers and non-messengers in the descending order of temporary service put in by the

candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the Regional

Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8833

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W2. Further, the Workman has filed photocopies of documents in support of

his claim which are discussed as under:-

Ex.W1 is the service certificate. Ex.W2 is the notification.

21.

On the other hand, Respondent has examined witness MW1 Sri K. Chandra Sekhar Goud and this witness

has exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

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[PART II—SEC. 3(ii)]

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri G. Srinivas

Rao, a Messenger with effect from 1.4.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.3.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.3.1997.”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8835

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.3.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

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[PART II—SEC. 3(ii)]

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1.4.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

1.4.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8837

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

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[PART II—SEC. 3(ii)]

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and Chapter

VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 1.4.1997.

In this context, WW1 in his cross examination has stated that,

“ I am not sponsored by the employment exchange….”

“I am not a member of any employees federation and I do not know whether the settlements between the federation

and the Management will be applicable to me. …. …”I used to work depending upon availability of work in the

branch. “Prior to my oral appointment there was no notification.”

Further witness states, “It is true that I did not work continuously for 200 days in any year, in my entire service in

the bank in any branch.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 1.4.1997. Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1.4.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.3.1997, therefore it was directed to issue suitable instructions not to

make temporary appointments from 31.3.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8839

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

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[PART II—SEC. 3(ii)]

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “The

Petitioner has not completed 240 days of service in a calendar year.” But the above statement of the management

witness in chief remained uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point.

Therefore, the claim of the Petitioner that he has been removed from service by the management illegally is

untenable. Further, witness MW1 in his chief statement has stated that, the workman was engaged in leave vacancies

in the bank on Temporary basis. This statement of witness MW1 remained uncontroverted as the Petitioner did not

cross examine the witness MW1 on this point. Therefore, the Petitioner Workman as per number of working days,

failed to fulfil eligibility criteria of working days as required for regularisation. Therefore, he was not given

regularisation in the employment of the Respondent. Further, WW1 states that he do not know particulars of the

settlement reached between the management and staff union. Therefore, in view of the statement of WW1 in cross

examination, the claim of the Petitioner that he was refused regularization by the Respondent management illegally,

is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8841

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

8842

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8843

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.3.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri G. Srinivas Rao, Ex. Messenger by way of oral orders w.e.f. 1.4.1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

8844

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 24th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri G. Srinivas Rao

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1:

Photocopy of service certificate

Ex.W2:

Photocopy of Notification

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1714.— vkS|ksfxd fookn vf/kfu;e] 1947(1947 dk 14)dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सह

–

Je U;k;ky;] िजिराबाि ds

iapkV (सन्दर्भ संख्या 97/2003) dks izdkf”kr djrh gS]

[la- ,y- 39025/01/2026-vkbZ-vkj-(बी-II)-101]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1714.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award ( LC.No. 97/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[F. L-39025/01/2026- IR (B-II)-101]

SALONI, Deputy Director

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8845

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 30th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 97/2003

Between:

Sri Kamalapuram Riazuddin,

S/o K. Abdul Khurdus,

15-846-2, Modampally

Mosque street,

Proddutur,

Cuddapah Dist.

… Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Branch Manager,

State Bank of India,

Proddutur distt.

…..Respondents

Appearances:

For the Petitioner :

Sri Macherla Rangaiah, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Kamalapuram Riazuddin who worked as Messenger (who will be referred to as the workman) has filed

this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India

seeking for reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of

service, back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

8846

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1987 to 13.9.1997, and has

rendered unblemished service spreading over a period of about 10 years. The Respondent has terminated services of

Workman by oral orders with effect from 13.9.1997. Further, it is submitted that the management of Respondent

bank decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by

wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8847

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of 31.3.1997. The Hon’ble High Court

also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

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[PART II—SEC. 3(ii)]

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary

to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8849

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

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[PART II—SEC. 3(ii)]

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto 1.4.1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived at

and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8851

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W6. Further, the Workman has filed photocopies of documents in support of

his claim which are discussed as under:-

Ex.W1 is the service certificate. Ex.W2 is the service certificate. Ex.W3 is the transfer certificate. Ex.W4 is

conduct certificate. Ex.W5 is the SSC marks memo. Ex.W6 is the panel list.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has exhibited

12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Poddutur branch in terminating the services of Workman

Sri Kamalapuram Riazuddin, a Messenger with effect from 13.9.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

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[PART II—SEC. 3(ii)]

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.3.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.3.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8853

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 13.9.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

13.9.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

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[PART II—SEC. 3(ii)]

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8855

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 13.9.1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange..”

“I did not work for 240 days continuously in any year.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 13.9.1997. Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 13.9.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.3.1997, therefore it was directed to issue suitable instructions not to

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[PART II—SEC. 3(ii)]

make temporary appointments from 31.3.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 13.9.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto 1.4.1997 and the vacancies as agreed to under the afore set out settlements will be filled from both

the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute is

filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto 1.4.1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8857

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “The

Petitioner has not completed 240 days of service in a calendar year.” Although this witness was cross examined by

the Petitioner but the above statement of the management witness in chief remained uncontroverted, as the witness

MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the Petitioner that he has been

removed from service by the management illegally is untenable. Further, witness MW1 in his chief statement has

stated that, “The Petitioner was engaged as a temporary messenger now and then on the oral instructions of the

Branch Manager. The temporary messengers and Non-messengers were engaged by the bank in leave vacancies and

for administrative exigencies.” Therefore, the Petitioner Workman as per number of working days, failed to fulfil

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[PART II—SEC. 3(ii)]

eligibility criteria of working days as required for regularisation. Therefore, he was not given regularisation in the

employment of the Respondent. Further, WW1 states that he do not know particulars of the settlement reached

between the management and staff union. Therefore, in view of the statement of WW1 in cross examination, the

claim of the Petitioner that he was refused regularization by the Respondent management illegally, is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8859

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court

have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

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[PART II—SEC. 3(ii)]

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.3.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8861

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Kamalapuram Riazuddin, Ex. Messenger by way of oral orders w.e.f. 13.9.1997 is justified. Hence,

the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 30th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Kamalapuram Riazuddin

MW1: Sri I.S. Appa Rao

Documents marked for the Petitioner

Ex.W1:

Photocopy of service certificate

Ex.W2:

Photocopy of service certificate

Ex.W3:

Photocopy of transfer certificate

Ex.W4:

Photocopy of conduct certificate

Ex.W5:

Photocopy of SSC marks memo

Ex.W6:

Photocopy of panel list

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1715.— vkS|ksfxd fookn vf/kfu;e] 1947(1947 dk 14)dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सह

–

Je U;k;ky;] िजिराबाि ds

iapkV (सन्दर्भ संख्या 103/2003) dks izdkf”kr djrh gS]

[la- ,y- 39025/01/2026-vkbZ-vkj-( बी-II)-99]

सलोनी, उृ जनिेिक

8862

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

New Delhi, the 27th July, 2026

S.O. 1715.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award ( LC.No.103/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)-99]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 2nd day of July, 2026

INDUSTRIAL DISPUTE L.C.No.103/2003

Between:

Sri Vinukonda Bala Sundara Rao

S/o Borrayya,

Tadepalli Village and Mandal,

Guntur Distt.

… Petitioner

And

1.

The Chief Manager,

State Bank of India,

Personnel Section, Zonal Office,

Labbipet, Vijayawada.

2.

The General Manager,

(Personnel)

State Bank of India,

Local Head office, Bank Street

Hyderabad.

…..Respondents

Appearances:

For the Petitioner :

M/s. Nurulla Baig, Advocates

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Vinukonda Bala Sundara Rao who worked as Messenger (who will be referred to as the workman) has

filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India

seeking for reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of

service, back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the aggrieved

Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble High Court of

Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and

set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central

Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of

India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8863

termination and further directed to consider their cases for regularization as and when the substantive vacancy arises.

This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch petitions was

challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of 2014. The

aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High Court of

Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was

pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger and worked from 1987 to March,

1997, and has rendered unblemished service spreading over a period of about 10 years. The Respondent has

terminated services of Workman by oral orders with effect from March, 1997. Further, it is submitted that the

management of Respondent bank decided to give a chance to temporarily employed personnel “found suitable for

permanent appointment” by wait- listing them by offering permanent appointment or waitlisting till such

opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

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[PART II—SEC. 3(ii)]

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High Court

also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8865

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary

to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

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[PART II—SEC. 3(ii)]

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8867

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered

into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

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[PART II—SEC. 3(ii)]

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W8. Further, the Workman has filed photocopies of documents in support of

his claim which are discussed as under:-

Ex.W1 is the notification. Ex.W2 and Ex.W3 are service certificates. Ex.W3 is the panel list. Ex.W4 is circular

dt.25.3.1997. Ex.W5 is paper advertisement. Ex.W6 is the 2nd panel list. Ex.W7 is transfer certificate. Ex.W8 is the

caste certificate.

21.

On the other hand, Respondent has examined witness MW1 Sri Rupakula Prakash Babu and this witness has

exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri Vinukonda

Bala Sundara Rao, a Messenger with effect from March, 1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8869

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.3.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.3.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

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[PART II—SEC. 3(ii)]

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on March, 1997 without issuing any notice or paying any salary or compensation in lieu

thereof. Therefore, the termination order of the Workman from service is in violation of provision contained Under

Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

March, 1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman

on merit it would be apposite to reproduce the provision contained under section 25 F:-

[भाग II— ण् ड 3(ii)]

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Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

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[PART II—SEC. 3(ii)]

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., March, 1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange…..”

“I did not work continuously for 240 days in any year of my service.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., March, 1997. Thus, the claim of

the Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated March, 1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.3.1997, therefore it was directed to issue suitable instructions not to

make temporary appointments from 31.3.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from March, 1997 and there after. It is settled law that the daily wagers are engaged by the employer depending

upon the availability of work and as the work was not available the Workman was not engaged further by the

Respondent management. Therefore, the Workman on the ground of number of days he had worked in the

Respondent bank cannot claim any right to reinstate him into the employment. As the Workman failed to prove the

mandatory condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in

regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

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[PART II—SEC. 3(ii)]

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “The

Petitioner has not worked for 240 days in any year in his entire temporary service in the bank.” Although this

witness was cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the

Petitioner that he has been removed from service by the management illegally is untenable. Further, witness MW1

in his chief statement has stated that, the workman was engaged in leave vacancies in the bank on Temporary basis.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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This witness has categorically stated that, “The Petitioner was engaged as a temporary messenger now and then

subject to availability of work, to tide over the sub-ordinate staff constraints due to leave vacancies absenteeism and

other administrative exigencies.” This statement of witness MW1 remained uncontroverted as the Petitioner did not

cross examine the witness MW1 on this point. Therefore, the Petitioner Workman as per number of working days,

failed to fulfil eligibility criteria of working days as required for regularisation. Therefore, he was not given

regularisation in the employment of the Respondent. Further, WW1 states that he do not know particulars of the

settlement reached between the management and staff union. Therefore, in view of the statement of WW1 in cross

examination, the claim of the Petitioner that he was refused regularization by the Respondent management illegally,

is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years

of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

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[PART II—SEC. 3(ii)]

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court

have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8877

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.3.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

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[PART II—SEC. 3(ii)]

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Vinukonda Bala Sundara Rao, Ex. Messenger by way of oral orders w.e.f. March, 1997 is justified.

Hence, the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit,

hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 2nd day of July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Vinukonda Bala Sundara Rao

MW1: Sri Rupakula Prakash Babu

Documents marked for the Petitioner

Ex.W1:

Photocopy of notification

Ex.W2 to

Ex.W3:

Photocopies of service certificates

Ex.W4:

Photocopy of circular dt. 25.3.1997

Ex.W5:

Photocopy of another paper advertisement

Ex.W6:

Photocopy of 2nd panel list

Ex.W7:

Photocopy of transfer certificate

Ex.W8:

Photocopy of caste certificate.

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8879

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1716.— vkS|ksfxd fookn vf/kfu;e] 1947(1947 dk 14)dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सह

–

Je U;k;ky;] िजिराबाि ds

iapkV (सन्दर्भ संख्या 114/2003) dks izdkf”kr djrh gS]

[la- ,y- 39025/01/2026-vkbZ-vkj-( बी-II)-97]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1716.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award ( LC.No.114/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)-97]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 2nd day of July, 2026

INDUSTRIAL DISPUTE L.C.No. 114/2003

Between:

Sri P. Venkata Ravi,

S/o P. Subrahmanyam,

Karodupet Village,

Ulavapadu mandal,

Prakasam Dist. – 523 292.

… Petitioner

And

The Asst. General Manager,

State Bank of India,

Renigunta Road,

Tirupathi.

…..Respondent

Appearances:

For the Petitioner :

Sri Vijaya Shekar Reddy, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri P. Venkata Ravi who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

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[PART II—SEC. 3(ii)]

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1.1.84 to 31.3.1997, and has

rendered unblemished service spreading over a period of about 13 years. The Respondent has terminated services of

Workman by oral orders with effect from 31.3.1997. Further, it is submitted that the management of Respondent

bank decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by

wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8881

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the

1st settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High court

of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High Court

also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

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[PART II—SEC. 3(ii)]

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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and terminated the services of the candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary

to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies. The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

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[PART II—SEC. 3(ii)]

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W6. Further, the Workman has filed photocopies of documents in support of

his claim which are discussed as under:-

Ex.W1 is the service certificate. Ex.W2 is the interview call letter. Ex.W3 is the panel list. Ex.W4 is the service

certificate. Ex.W5 is the transfer certificate. Ex.W6 is the service particulars.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has exhibited

12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri P. Venkata

Ravi, a Messenger with effect from 31.3.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

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[PART II—SEC. 3(ii)]

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.3.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.3.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

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[PART II—SEC. 3(ii)]

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8889

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange and did not undergo the regular process of selection before my

engagement as temporary messenger in the branch..”

“It is true that I did not work for 240 days in any year in my entire service in the bank in any branch.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman does not amount to termination.

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[PART II—SEC. 3(ii)]

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.3.1997, therefore it was directed to issue suitable instructions not to

make temporary appointments from 31.3.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 31.3.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8891

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

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[PART II—SEC. 3(ii)]

39.

In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross

examination the witness WW1 states:-

“Prior to my oral appointment in 1984 there was no notification.”

…”I used to work depending upon availability of work in the branch. I am not aware of the settlements between the

federation and the Management. …. Further witness states, “It is true that I am not having any documents to show

that any of my juniors are continuing in service in the bank.”

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of

various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was

prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself

admitted that some of the temporary employees whose names were included in the panel were given regular

appointment in the bank in order of their seniority in the panel and he is not having any document to show that any

person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the

allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of

the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,

there is no evidence on record that bank has given the appointment to the temporary employees as well as daily

wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no

evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.

Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in

order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8893

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court

have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

8894

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.3.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8895

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri P. Venkata Ravi, Ex. Messenger by way of oral orders w.e.f. 31.3.1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 2nd day of July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri P. Venkata Ravi

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1:

Photocopy of service certificate

Ex.W2:

Photocopy of interview call letter

Ex.W3:

Photocopy of panel list

Ex.W4:

Photocopy of service certificate

Ex.W5:

Photocopy of transfer certificate

Ex.W6:

Photocopy of service particulars

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

8896

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1717.— vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सह

–

Je U;k;ky;] िजिराबाि ds

iapkV (सन्दर्भ संख्या 104/2003) dks izdkf”kr djrh gS]

[la- ,y- 39025/01/2026-vkbZ-vkj-( बी-II)-98]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1717.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award ( LC.No.104/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)-98]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 2nd day of July, 2026

INDUSTRIAL DISPUTE L.C.No.104/2003

Between:

Sri Pathuri Thomas

S/o Aseervadam,

R/o Mandadam Post,

Talluru Mandal,

Guntur Distt.

… Petitioner

And

1.

The Chief Manager,

State Bank of India,

Personnel Section, Zonal Office,

Labbipet, Vijayawada.

2.

The General Manager,

(Personnel)

State Bank of India,

Local Head office, Bank Street

Hyderabad.

…..Respondents

Appearances:

For the Petitioner :

M/s. Nurulla Baig, Advocates

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8897

AWARD

Sri Pathuri Thomas who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger and worked from 1987 to March,

1997, and has rendered unblemished service spreading over a period of about 10 years. The Respondent has

terminated services of Workman by oral orders with effect from March, 1997. Further, it is submitted that the

management of Respondent bank decided to give a chance to temporarily employed personnel “found suitable for

permanent appointment” by wait- listing them by offering permanent appointment or waitlisting till such opportunity

arises.

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8899

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

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[PART II—SEC. 3(ii)]

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary

to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8901

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered

into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

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[PART II—SEC. 3(ii)]

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W13. Further, the Workman has filed photocopies of documents in support

of his claim which are discussed as under:-

Ex.W1 is the notification. Ex.W2 is the interview call letter. Ex.W3 is the panel list. Ex.W4 to Ex.W6 are the

service certificates. Ex.W7 is circular dt.25.3.1997. Ex.W8 is paper advertisement. Ex.W9 is the 2nd panel list.

Ex.W10 is transfer certificate. Ex.W11 is the caste certificate. Ex.W12 is the registration card. Ex.W13 is the marks

memo fo 10th class.

21.

On the other hand, Respondent has examined witness MW1 Sri Rupakula Prakash Babu and this witness has

exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri Pathuri

Thomas, a Messenger with effect from March, 1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8903

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.3.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.3.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

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[PART II—SEC. 3(ii)]

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8905

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on March, 1997 without issuing any notice or paying any salary or compensation in lieu

thereof. Therefore, the termination order of the Workman from service is in violation of provision contained Under

Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

March, 1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman

on merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

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[PART II—SEC. 3(ii)]

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., March, 1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange…..”

“I did not work continuously for 240 days in any year of my service.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., March, 1997. Thus, the claim of

the Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8907

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated March, 1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.3.1997, therefore it was directed to issue suitable instructions not to

make temporary appointments from 31.3.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from March, 1997 and there after. It is settled law that the daily wagers are engaged by the employer depending

upon the availability of work and as the work was not available the Workman was not engaged further by the

Respondent management. Therefore, the Workman on the ground of number of days he had worked in the

Respondent bank cannot claim any right to reinstate him into the employment. As the Workman failed to prove the

mandatory condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8909

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “The

Petitioner has not worked for 240 days in any year in his entire temporary service in the bank.” Although this

witness was cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the

Petitioner that he has been removed from service by the management illegally is untenable. Further, witness MW1

in his chief statement has stated that, the workman was engaged in leave vacancies in the bank on Temporary basis.

This witness has categorically stated that, “The Petitioner was engaged as a temporary messenger now and then

subject to availability of work, to tide over the sub-ordinate staff constraints due to leave vacancies absenteeism and

other administrative exigencies.” This statement of witness MW1 remained uncontroverted as the Petitioner did not

cross examine the witness MW1 on this point. Therefore, the Petitioner Workman as per number of working days,

failed to fulfil eligibility criteria of working days as required for regularisation. Therefore, he was not given

regularisation in the employment of the Respondent. Further, WW1 states that he do not know particulars of the

settlement reached between the management and staff union. Therefore, in view of the statement of WW1 in cross

examination, the claim of the Petitioner that he was refused regularization by the Respondent management illegally,

is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

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[PART II—SEC. 3(ii)]

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8911

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court

have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.3.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

8912

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Pathuri Thomas, Ex. Messenger by way of oral orders w.e.f. March, 1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 2nd day of July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Pathuri Thomas

MW1: Sri Rupakula Prakash Babu

Documents marked for the Petitioner

Ex.W1:

Photocopy of notification

Ex.W2:

Photocopy of interview call letter

Ex.W3:

Photocopy of panel list

Ex.W4 to

Ex.W6:

Photocopies of service certificates

Ex.W7:

Photocopy of circular dt. 25.3.1997

Ex.W8:

Photocopy of another paper advertisement

Ex.W9:

Photocopy of 2nd panel list

Ex.W10:

Photocopy of transfer certificate

Ex.W11:

Photocopy of caste certificate.

Ex.W12:

Photocopy of registration card

Ex.W13:

Photocopy of marks memo of 10th class.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8913

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 27 tqykbZ, 2026

का.आ. 1718.— vkS|ksfxd fookn vf/kfu;e] 1947(1947 dk 14)dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारती स्ट्टेट बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k

–

सह

–

Je U;k;ky;] िजिराबाि ds

iapkV (सन्दर्भ संख्या 118/2003) dks izdkf”kr djrh gS]

[la- ,y- 39025/01/2026-vkbZ-vkj-( बी-II)-96]

सलोनी, उृ जनिेिक

New Delhi, the 27th July, 2026

S.O. 1718.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award ( LC.No.118/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-39025/01/2026- IR (B-II)-96]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 3rd day of July, 2026

INDUSTRIAL DISPUTE L.C.No.118/2003

Between:

Sri M. Raja Rao,

S/o M.Ch. Koteswra Rao,

Malakpatnam,

8914

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Nr. Socsite Rice Mill,30/64 A-1,

Machilipatnam.

… Petitioner

And

The Dy. General Manager,

State Bank of India,

Zonal Office,

Vijayawada.

…..Respondent

Appearances:

For the Petitioner :

Sri B. Vikas, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri M. Raja Rao who worked as Messenger (who will be referred to as the workman) has filed this petition

under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondent s, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. AIl these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8915

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the he joined the service of the Respondent Bank as a messenger in the year 1984 and he worked upto 1.4.1997.

Thereby he worked for about 13 years. Further, it is submitted that the management of Respondent bank decided to

give a chance to temporarily employed personnel “found suitable for permanent appointment” by wait- listing them

by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

8916

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondent s 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondent s have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondent s have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8917

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies. The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

8918

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[PART II—SEC. 3(ii)]

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions and terms of

the settlements are also binding on him/her. The Management bank has not violated any of the provisions of the

terms of the said settlement. That the very preparation and maintenance of panel is in compliance of the terms

agreed under these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the

bank has never promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made

clear that candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the

panels after 31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the

Management bank. That the settlements are binding on the parties. The Workman is also bound under the terms of

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8919

the said settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right

under the settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to

be absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W2. Further, the Workman has filed photocopies of documents in support of

his claim which are discussed as under:-

Ex.W1 is the service certificate. Ex.W2 is the notification.

21.

Though Respondent has filed counter, but the contention made in the counter is not substantiated by any

evidence by the Respondent Management.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for

Petitioner following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri M. Raja Rao,

a Messenger with effect from 1.4.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is

not in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8921

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement

had been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted

the settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that

is a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of

the fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since

expired and we are informed that the employer and the 3rd Respondent are negotiating another settlement with

further improvements. These factors, apart from what has been stated above, and the need for industrial peace and

harmony when a union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as

fair and just and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973.

The said settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as

to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

8922

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent .

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1.4.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent

on 1.4.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman

on merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8923

non-production of the muster roll for a particular period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29. The Petitioner in his chief examination has reiterated the version of the claim statement. This witness WW1was

cross examined by the Respondent counsel and in his cross examination witness has stated that he joined as

messenger at Bazar branch, Machilipatnam of State Bank of India for the first time without any written appointment

order. Further, witness states that during the period 21.12.84 to 1987 he worked for 165 days. Further, witness

states that he stopped attending the bank service from 1997, but he was not issued any written order of removal. He

did not give any representation to the bank and he has worked as an agricultural labourer. Further, witness states he

was not appointed as per the recruitment selection procedure.

Thus, from the above statement of the witness in cross examination it manifests that Workman was not

recruited by any selection procedure rather he had worked as a casual Workman who was engaged by the Respondent

for the work intermittently for different periods. Thus, the Workman has not completed 240 days of his service in any

calendar year just preceding from the date of his termination. Therefore, he has not fulfilled the condition mentioned

under section 25 F of the ID Act, hence, the provision of Section 25F is not applicable to his case. Further, witness

in his cross examination has admitted that he did not work continuously for 240 days in any branch, in any year and

he used to work depending upon the availability of the work in the branch. Thus, in view of the statement of

Petitioner witness, he does not fulfill the condition of continuous service of one year as provided under Section 25F

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[PART II—SEC. 3(ii)]

of the Act, therefore, the claim of the Petitioner that he has been terminated from service by the Respondent in

violation of the provision of Section 25F of the Act is not maintainable.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent , I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1.4.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 1.4.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent .

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8925

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondent s were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondent s that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondent s did not get any

right, because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank.

Whatever conditional right they had came to an end with the expiry of the panel. The claim of the Respondent s, as

contained in the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench,

when it first decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

As regard the regularization, the witness has stated that he do not have panel list, he is not a member of any

employees federation and he do not know whether the settlements between the management and the federation will be

applicable to him. Further, this witness states that, he is not aware of the settlements between the federation and

management and also stated that he do not have any knowledge about the agreements speaks of the absorption in

permanent position. Thus, from the above statement of the witness it manifests that he failed to prove his claim for

regularization in the service of the Respondent.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without

any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years

of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8927

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either

in the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court

have held:-

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[PART II—SEC. 3(ii)]

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd Respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd Respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

Thus, in view of fore gone discussion and laws laid down by Hon’ble Apex Court as discussed above, the

claim of workman of regularization in the employment of Respondent is not substantiated by the evidence of

Petitioner, WW1 in his cross examination has admitted that he is not aware of any settlements and he is not having

any document to show that any person who worked for less number of days than him was given appointment in the

bank and he has no document to show that any of his juniors is continuing in service of the bank as of now.

Therefore, the claim of the Petitioner for regularization in the employment of Respondent bank is not tenable.

Further, Petitioner failed to produce any document in evidence to establish that any temporary employee junior to

him is working in the Respondent bank. Therefore, Petitioner is not entitled for regularization in the service of the

Respondent.

This point is answered against the Petitioner Workman and in favour of the Respondent.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri M. Raja Rao, Ex. Messenger by way of oral orders w.e.f. 1.4.1997 is justified. Hence, the Petitioner

is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 3rd day of July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8929

Petitioner

Respondent

WW1: Sri M. Raja Rao

NIL

Documents marked for the Petitioner

Ex.W1:

Photocopy of service certificate

Ex.W2:

Photocopy of News paper advertisement/ notification

Documents marked for the Respondent

NIL

नई दिल्ली, 4 vxLr, 2026

का.आ. 1719.— vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa

dsUnzh; ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्भकार श्री एम. अय्याला रेड्डी ds

chp vuqca/k esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैदराबाद

ds iapkV (38/2003) izdkf”kr djrh gSA

[la. ,y- 12025/01/2026- vkbZ vkj (ch-I)-162]

सलोनी, उृ जनिेिक

New Delhi, the 4th August, 2026

S.O. 1719.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 38/2003) of the Central Government Industrial Tribunal-cum-

Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the management of State

Bank of India and their workman Sri M. Ayyala Reddy.

[No. L-12025/01/2026-IR(B-I)-162]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 12th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 38/2003

[Old ID No. 282/99 of Labour Court, Guntur]

Between:

Sri M. Ayyala Reddy,

S/o Chennaiah,

Machavaram,

Kandukur mandal,

Prakasam distt.

….. Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

8930

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Branch Manager,

State Bank of India ,

Kandukur branch.

4.

The Regional Manager,

State Bank of India,

Zonal Office,

Tirupathi.

…..Respondents

Appearances:

For the Petitioner :

M/s. S. Prasada Rao, Advocates

For the Respondent: Sri K. Rathanga Pani Reddy, Advocate

AWARD

Sri M. Ayyala Reddy who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all 82her attendant benefits etc., and such other reliefs as this court may deem fit. Earlier Petitioner

has filed this dispute before the Labour Court, Guntur for adjudication and later the same has been transferred to

this Tribunal bearing ID No. 282/99, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated

18.10.2001 and registered, numbered in this Tribunal as LC No. 38 /2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the aggrieved

Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble High Court of

Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and

set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central

Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of

India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive vacancy arises.

This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch petitions was

challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of 2014. The

aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High Court of

Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was

pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8931

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 25.4.1985 to 31.7.98, and has

rendered unblemished service spreading over a period of about 2 years. The Respondent has terminated services of

Workman by oral orders with effect from 31.7.98. Further, it is submitted that the management of Respondent bank

decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by wait-

listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

8932

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High court

of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High Court

also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8933

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 31.7.98 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies. The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

8934

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8935

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and has filed photocopies of four

documents in evidence, which are marked as Ex.W1 to W4. The details of the documents are as under:

Ex.W1 is the transfer certificate. Ex.W2 is the caste certificate. Ex.W3 is the service certificate. Ex.W4 is another

service certificate.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has exhibited

12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

8936

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Kandukuru Main branch in terminating the services of

Workman Sri M. Ayyala Reddy, a Messenger with effect from 31.7.98 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.7.98. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.7.98.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.7.98 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements entered

into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8937

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.7.98 and it has also been communicated to all concerned that the panels of

temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.7.98 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

8938

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 31.7.98 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

31.7.98 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8939

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

8940

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 31.7.98.

In this context, WW1 in his cross examination has stated that,

“ My service was for total no. of 430 days but I have service certificate for 249 days only spread with gaps from time

to time for the period from 1985 to 1991 which is Ex.W4…..

I was not sponsored by any employment exchange and I was not issued any appointment order at the time of joining

my service. . ….. It is not true to suggest that I never worked for 240 days in a year continuously and I was casual

worker I am not entitled for any relief.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 31.7.98. Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 31.7.98 rather he was disengaged in view of the non-availability of the work in the branch. Further, there was

direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/ temporary

Worker w.e.f. 31.7.98. Thus, such disengagement of Workman does not amount to termination. Moreover, the

Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of the I.D. Act,

1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240 days

continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.7.98.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.7.98, therefore it was directed to issue suitable instructions not to make

temporary appointments from 31.7.98. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 31.7.98 and there after. It is settled law that the daily wagers are engaged by the employer depending upon the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8941

availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1985 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

8942

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in the

settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding nature

of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the I.D.

Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated

30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no

legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “The

Petitioner has not completed 240 days of service in a calendar year.” Although this witness was cross examined by

the Petitioner but the above statement of the management witness in chief remained uncontroverted, as the witness

MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the Petitioner that he has been

removed from service by the management illegally is untenable. Further, witness MW1 in his chief statement has

stated that, “The temporary messengers and Non-messengers were engaged by the bank in leave vacancies and for

administrative exigencies. The Petitioner did not work continuously for 240 days in any year or over a period of 36

months.” This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the

witness MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil

eligibility criteria of working days as required for regularisation. Therefore, he was not given regularisation in the

employment of the Respondent. Therefore, in view of the statement of MW1, the claim of the Petitioner that he was

refused regularization by the Respondent management illegally, is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8943

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

8944

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1985 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8945

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.7.98.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri M. Ayyala Reddy, Ex. Messenger by way of oral orders w.e.f. 31.7.98 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 12th day of June, 2026.

IRFAN QAMAR, Presiding Officer

8946

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri M. Ayyala Reddy

MW1: Sri I.S. Appa Rao

Documents marked for the Petitioner

Ex.W1:

Photocopy of transfer certificate

Ex.W2:

Photocopy of caste certificate

Ex.W3:

Photocopy of service certificate

Ex.W4:

Photocopy of service certificate

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 4 vxLr, 2026

का.आ. 1720.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa

dsUnzh; ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्भकार श्री टी. नरडसम्हा राव ds

chp vuqca/k esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैदराबाद

ds iapkV (37/2003) izdkf”kr djrh gSA

[la- ,y- 12025/01/2026- vkbZ vkj (ch-I)-161]

सलोनी, उृ जनिेिक

New Delhi, the 4th August, 2026

S.O. 1720.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 37/2003) of the Central Government Industrial Tribunal-cum-

Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the management of State

Bank of India and their workman Sri T. Narasimha Rao.

[No. L-12025/01/2026-IR(B-I)-161]

SALONI, Deputy Director

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8947

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 12th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 37/2003

[Old ID No. 248/2000 of Labour Court, Guntur]

Between:

Sri T. Narasimha Rao,

S/o Akkaiah,

R/o Rajupalem Post and Mandal,

Guntur distt.

….. Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Regional Asst. General Manager,

State Bank of India,

Zonal Office, Vijayawada Zone,

Vijayawada.

4.

The Branch Manager,

State Bank of India,

Bellamkonda branch,

Guntur district.

…..Respondents

Appearances:

For the Petitioner :

Sri S. Adinarayana, Advocate

For the Respondent : Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri T. Narasimha Rao who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit. Earlier Petitioner

has filed this dispute before the Labour Court, Guntur for adjudication and later the same has been transferred to

this Tribunal bearing ID No. 248/2000, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II)

dated 18.10.2001 and registered, numbered in this Tribunal as LC No. 37 /2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the aggrieved

Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble High Court of

Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and

set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central

8948

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of

India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive vacancy arises.

This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch petitions was

challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of 2014. The

aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High Court of

Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was

pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1985 to 1.4.1997, and has

rendered unblemished service spreading over a period of about 13 years. The Respondent has terminated services of

Workman by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent

bank decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by

wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8949

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows: "Government of India, vide its letter dated 16.8.1990, issued guidelines

8950

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

to all the public sector banks with regard to recruitment and absorption of temporary employees in public sector

banks. The said guidelines were issued to implement on the lines of the approach paper on the issue provided by a

committee constituted in this regard. The Government of India guidelines made it clear that all the public sector

banks may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary

to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8951

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

8952

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

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Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W10. Further, the Workman has filed photocopies of documents in support

of his claim which are discussed as under:-

Ex.W1 is the service certificate. Ex.W2 is the service certificate. Ex.W3 is the service certificate. Ex.W4 is the

employment card. Ex.W5 is the transfer certificate. Ex.W6 is the panel list. Ex.W7 is the interview call letter.

Ex.W8 is the stay order. Ex.W9 is the 1992 panel list. Ex.W10 is the legal notice.

21.

On the other hand, Respondent has examined witness MW1 Sri K. Chandra Sekhar Goud and this witness

has exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Bellamkonda branch, in terminating the services of

Workman Sri T. Narasimha Rao, a Messenger with effect from 1.4.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

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[PART II—SEC. 3(ii)]

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997 . The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997 .”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

[भाग II— ण् ड 3(ii)]

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between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1.4.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

1.4.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

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[PART II—SEC. 3(ii)]

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 1.4.1997 .

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange and did not undergo the regular process of selection before my

engagement as temporary messenger in the branch..”

“It is true that I did not work for 240 days in any year in my entire service in the bank in any branch.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 1.4.1997 . Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1.4.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997 Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 1.4.1997 .

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

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[PART II—SEC. 3(ii)]

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997 , therefore it was directed to issue suitable instructions not to

make temporary appointments from 1.4.1997 . There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8959

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “The

Petitioner has not completed 240 days of service in a calendar year.” Although this witness was cross examined by

the Petitioner but the above statement of the management witness in chief remained uncontroverted, as the witness

MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the Petitioner that he has been

removed from service by the management illegally is untenable. Further, witness MW1 in his chief statement has

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[PART II—SEC. 3(ii)]

stated that, the workman was engaged in leave vacancies in the bank on Temporary basis. Therefore, the Petitioner

Workman as per number of working days, failed to fulfil eligibility criteria of working days as required for

regularisation. Therefore, he was not given regularisation in the employment of the Respondent. Moreover, the

Workman witness WW1 in his cross examination has admitted the fact that he do not know whether any junior to him

were regularised in the services. Further, WW1 states that he do not know particulars of the settlement reached

between the management and staff union. Therefore, in view of the statement of WW1 in cross examination, the

claim of the Petitioner that he was refused regularization by the Respondent management illegally, is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

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[PART II—SEC. 3(ii)]

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of

the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 1.4.1997 .

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8963

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri T. Narasimha Rao, Ex. Messenger by way of oral orders w.e.f. 1.4.1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 12th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri T. Narasimha Rao

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1:

Photocopy of service certificate

Ex.W2:

Photocopy of service certificate

Ex.W3:

Photocopy of service certificate

Ex.W4:

Photocopy of employment card

Ex.W5:

Photocopy of transfer certificate

Ex.W6:

Photocopy of panel list

Ex.W7:

Photocopy of interview call letter

Ex.W8:

Photocopy of stay order

Ex.W9:

Photocopy of 1992 panel list

Ex.W10:

Photocopy of legal notice

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

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[PART II—SEC. 3(ii)]

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 4 vxLr, 2026

का.आ. 1721.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa

dsUnzh; ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्भकार श्री कोरागंडि रमेश

बाबू ds chp vuqca/k esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;]

हैदराबाद ds iapkV (42/2003) izdkf”kr djrh gSA

[la- ,y- 12025/01/2026- vkbZ vkj (ch-I)-163]

सलोनी, उृ जनिेिक

New Delhi, the 4th August, 2026

S.O. 1721.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 42/2003) of the Central Government Industrial Tribunal-cum-

Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the management of State

Bank of India and their workman Sri Koraganti Ramesh Babu.

[No. L-12025/01/2026-IR(B-I)-163]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 16th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 42/2003

[Old ID No. 247/2000 of Labour Court, Guntur]

Between:

Sri Koraganti Ramesh Babu,

S/o Bhagyamma,

R/o Krishna Nagar,

Tadepalli Mandal,

Guntur distt.

….. Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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3.

The Regional Asst. General Manager,

State Bank of India,

Zonal Office, Vijayawada Zone,

Vijayawada.

4.

The Branch Manager,

State Bank of India,

Governorpet branch,

Vijayawada

Krishna district.

…..Respondents

Appearances:

For the Petitioner :

Sri S. Adinarayana, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Koraganti Ramesh Babu who worked as Messenger (who will be referred to as the workman) has filed

this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India

seeking for reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of

service, back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit. Earlier

Petitioner has filed this dispute before the Labour Court, Guntur for adjudication and later the same has been

transferred to this Tribunal bearing ID No. 2247/2000, as per orders of Central Government vide Lr.No.H-

11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in this Tribunal as LC No. 42/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the aggrieved

Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble High Court of

Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and

set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central

Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of

India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive vacancy arises.

This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch petitions was

challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of 2014. The

aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High Court of

Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased

to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

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[PART II—SEC. 3(ii)]

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 11.5.84 to 31.3.1997, and has

rendered unblemished service spreading over a period of about 6 years. The Respondent has terminated services of

Workman by oral orders with effect from 1.4.1997. Further, it is submitted that the management of Respondent

bank decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by

wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8967

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

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[PART II—SEC. 3(ii)]

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary

to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without jurisdiction

and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of Understanding dated

27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is not published anywhere

to brought to the notice of the Workman whose rights are being affected. It is submitted that Management did not

adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled candidates

like the Workman here. It is pertinent to mention here that the Respondent Management sent letters to the all

similarly situated candidates like the Workman in the month of June, 1997, subsequent to the passing of impugned

termination orders. After knowing the facts that the candidates are litigating, the Management refused to engage these

candidates. It is once again reiterated that the panels are meant for absorption but not for termination. It was the duty

of the Management to engage the empanelled candidates like the Workman even in temporary vacancies till they are

absorbed permanently in regular vacancies. Hence, the action of the Respondent Management terminating the

services of the Workman by oral order dated 31.3.97 is unjust, illegal, violative of principles of natural justice and

hence, the Management be directed to reinstate and absorb the Workman and to grant all incidental and consequential

benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered

into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

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[PART II—SEC. 3(ii)]

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W12. Further, the Workman has filed photocopies of documents in support

of his claim which are discussed as under:-

Ex.W1 to Ex.W4 are the service certificates. Ex.W5 is the transfer certificate. Ex.W6 is the caste certificate.

Ex.W7 is the X class marks memo. Ex.W8 is the panel list. Ex.W9 is the interview call letter. Ex.W10 is the stay

order. Ex.W11 is the 1992 panel list. Ex.W12 is the legal notice.

21.

On the other hand, Respondent has examined witness MW1 Sri K. Chandra Sekhar Goud and this witness

has exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998. Ex.M13 is the paper notification.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

[भाग II— ण् ड 3(ii)]

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8971

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Governorpet branch, in terminating the services of

Workman Sri Koraganti Ramesh Babu, a Messenger with effect from 1.4.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.3.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.3.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

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[PART II—SEC. 3(ii)]

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1.4.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

1.4.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

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[PART II—SEC. 3(ii)]

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..” In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of

the Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days

of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and Chapter

VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 1.4.1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange and did not undergo the regular process of selection before my

engagement as temporary messenger in the branch..”

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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“It is true that I did not work for 240 days in any year in my entire service in the bank in any branch.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 1.4.1997. Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1.4.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.3.1997, therefore it was directed to issue suitable instructions not to

make temporary appointments from 31.3.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

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[PART II—SEC. 3(ii)]

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in

regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

[भाग II— ण् ड 3(ii)]

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conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross

examination the witness WW1 states:-

“Prior to my oral appointment there was no notification.”

…”I used to work depending upon availability of work in the branch. I am not aware of the settlements between the

federation and the Management. …. Further witness states, “It is true that I am not having any documents to show

that any of my juniors are continuing in service in the bank.”

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of

various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was

prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself

admitted that he is not having any document to show that any person who worked for less number of days than the

Workman was given appointment in the bank. Therefore, the allegation of the Workman that the regular

appointment has been made by the bank from the panel list in breach of the terms of the settlement and violation of

seniority of panel list is not proved by this evidence of WW1. Thus, there is no evidence on record that bank has

given the appointment to the temporary employees as well as daily wagers from the panel list 1989 and 1992 in

breach of seniority of the temporary employees in the list. There is no evidence of jumbling in the panel list to make

appointment of any permanent Workman in breach of the seniority. Therefore, I am constrained to hold that the

Respondent Management has appointed the workmen from panel list in order of seniority and there is no jumbling of

workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

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[PART II—SEC. 3(ii)]

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8979

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme Court

have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.3.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Koraganti Ramesh Babu, Ex. Messenger by way of oral orders w.e.f. 1.4.1997 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 16th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Koraganti Ramesh Babu

MW1: Sri K. Chandra Sekhar Goud

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8981

Documents marked for the Petitioner

Ex.W1to

Ex.W4:

Photocopies of service certificates

Ex.W5:

Photocopy of transfer certificate

Ex.W6:

Photocopy of the caste certificate

Ex.W7:

Photocopy of X class marks memo

Ex.W8:

Photocopy of panel list

Ex.W9:

Photocopy of the interview call letter

Ex.W10:

Photocopy of stay order

Ex.W11:

Photocopy of 1992 panel list

Ex.W12:

Photocopy of the legal notice.

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 5 vxLr, 2026

का.आ. 1722. —vkS?kksfxd fookn vf/kfu;e 1947 a1947 dk 14)dh /kkjk 17 ds vuqlj.k esa dsUnzh;

ljdkj आन्रा प्रिेि ग्रामीण जवकास बैंक ds izca/kr=] lac) fu;kstdks vkSj muds कमलकार श्री एन.एस.कष्‍णा मूर्तत ds

chp vuqca/k esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] िजिराबाि ds iapkV

(9/2020) izdkf”kr djrh gSA

[la- ,y- 12025/01/2026- vkbZ vkj (ch-I)-164]

सलोनी, उृ जनिेिक

New Delhi, the 5th August, 2026

S.O. 1722.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 9/2020) of the Central Government Industrial Tribunal-cum-

Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the management of Andhra

Pradesh Grameena Vikas Bank and their workman Shri N.S.Krishna Murthy.

[No. L-12025/01/2026-IR(B-I)-164]

SALONI, Deputy Director

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 16th day of July, 2026

INDUSTRIAL DISPUTE No. 9/2020

Between:

Shri N.S.Krishna Murthy,

Flat No.201,

Sri Sai Lendy Vanam,

Opp. Sharada Peetham,

Chinamushdiwada, Pendurthi Mandal,

Vishakapatnam 530051 …...Petitioner

AND

The Chairman,

Andhra Pradesh Grameena Vikas Bank,

D. No.2-5-8/1, Ram Nagar,

Hanmakonda - 560001,

Warangal City & Dist.

Telangana State ...… Respondent

Appearances:

For the Petitioner : None

For the Respondent: None

AWARD

The Government of India, Ministry of Labour by its order No. 7/1/2020 -B1 dated 19.02.2020 referred the

following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between the

management of Andhra Pradesh Grameena Vikas Bank, and their workman. The reference is,

SCHEDULE

"Whether the action of the management of AP Grameena Vikas Bank, Warangal in dismissing the services of Shri

N.S. Krishna Murthy, Ex. Office Assistant w.e.f. 22.08.2011 is justified? If not, what relief the concerned workman

is entitled to?

The reference is numbered in this Tribunal as I.D. No 9/2020 and notices were issued to the parties

concerned.

2.

On the date fixed for appearance and filing of claim statement Petitioner remained absent. Despite

sufficient opportunity, Petitioner has failed to appear and did not file any claim statement. Hence, a No Claim

Award is passed. The reference is answered accordingly.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, P.A., corrected and signed by me on this the 16th day of

July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8983

नई दिल्ली, 5 vxLr, 2026

का.आ. 1723.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa

dsUnzh; ljdkj मेससभ ब ंदावन फ़ूि प्रोिक्ट्स; इंडियन रेलवे कैटररंग एंि टूररज्म कारपोरेशन डलडमटेि (आईआरसीटीसी) ds

izca/kr=] lac) fu;kstdks vkSj muds कर्भकार श्रीमिी बी. ज्योडि ds chp vuqca/k esa fufnZ’V vkS?kksfxd fookn esa

dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैदराबाद ds iapkV (13/2026) izdkf”kr djrh gSA

[la- ,y- 12025/01/2026- vkbZ vkj (ch-I)-165]

सलोनी, उृ जनिेिक

New Delhi, the 5th August, 2026

S.O. 1723.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 13/2026) of the Central Government Industrial Tribunal-cum-

Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the management of M/s

Brandavan Food Products; Indian Railway Catering and Tourism Corporation Ltd (IRCTC) and their

workman Smt. B. Jyothi

[No. L-12025/01/2026-IR(B-I)-165]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 15th day of July, 2026

INDUSTRIAL DISPUTE No. 13/2026

Between:

Smt. B. Jyothi,

W/o B. Vijay Kumar,

H.No.12-15-55,

Manikeshwar Nagar, OU Campus,

VTC: Secunderabad, Hyderabad,

Telangana-500007 .…...Petitioner

AND

1. The Proprietor,

M/s Brandavan Food Products,

D.No.12-10-412/A, 1st Floor,

Namalagundu,

Secunderabad-500061, Telangana.

2. The General Manager,

Indian Railway Catering and Tourism Corporation Ltd (IRCTC),

South Central Railway,

S.D. Road, Secunderabad-500003,

Telangana ...… Respondents

Appearances:

For the Petitioner : None

For the Respondent: None

AWARD

The Government of India, Ministry of Labour by its order No. 8/30/2025 -B1 dated 31.07.2025 referred the

following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between the

management of M/s Brandavan Food Products, and their workmen. The reference is,

8984

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

SCHEDULE

"Whether the action of the management of M/s Brandavan Food Products, Contractor under the Principal Employer

Indian Railway Catering and Tourism Corporation Ltd (IRCTC), South Central Railway, Secunderabad in terminating

the services of the workmen Smt. B. Jyothi and 30 others (List attached) is legal and justified? If not, what relief the

workmen are entitled for?"

The reference is numbered in this Tribunal as I.D. No 13/2026 and notices were issued to the parties

concerned.

2.

On the date fixed for appearance and filing of claim statement Petitioner remained absent. Despite

sufficient opportunity, Petitioner has failed to appear and did not file any claim statement. Hence, a No Claim

Award is passed. The reference is answered accordingly.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, P.A., corrected and signed by me on this the 15th day of

July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई दिल्ली, 5 vxLr, 2026

का.आ. 1724.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa

dsUnzh; ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्भकार श्री बी. सुब्रमण्यम ds

chp vuqca/k esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैदराबाद

ds iapkV (12/2003) izdkf”kr djrh gSA

[la- ,y- 12025/01/2026-vkbZ vkj (ch-I)-166]

सलोनी, उृ जनिेिक

New Delhi, the 5th August, 2026

S.O. 1724.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 12/2003) of the Central Government Industrial Tribunal-cum-

Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the management of State

Bank of India and their workman Sri B. Subramanyam.

[No. L-12025/01/2026-IR(B-I)-166]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 15th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 12/2003

[Old ID No. 274/99 of Labour Court, Guntur]

Between:

Sri B. Subramanyam,

S/o Atchaiah,

C/o Dhanalakshmi Mess,

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8985

Addanki.

Prakasam distt.

….. Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Branch Manager,

State Bank of India ,

Addanki branch.

4.

The Regional Manager,

State Bank of India,

Zonal Office,

Tirupathi.

…..Respondents

Appearances:

For the Petitioner

:

M/s. S. Prasada Rao, Advocates

For the Respondent

:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri B. Subramanyam who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of service,

back wages and all 82her attendant benefits etc., and such other reliefs as this court may deem fit. Earlier Petitioner

has filed this dispute before the Labour Court, Guntur for adjudication and later the same has been transferred to

this Tribunal bearing ID No. 274/99, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated

18.10.2001 and registered, numbered in this Tribunal as LC No. 12 /2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon’ble

High Court of Andhra Pradesh and Hon’ble High Court vide its’ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon’ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon’ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

8986

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 10.10.1980 to 6.4.86, and has

rendered unblemished service spreading over a period of about 6 years. The Respondent has terminated services of

Workman by oral orders with effect from 6.4.86. Further, it is submitted that the management of Respondent bank

decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by wait-

listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it’s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8987

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon’ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

8988

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon’ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 6.4.86 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

8989

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation’s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

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[PART II—SEC. 3(ii)]

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and has filed photocopies of four

documents in evidence, which are marked as Ex.W1 to W4. The details of the documents are as under:

Ex.W1 is the transfer certificate. Ex.W2 is the interview letter. Ex.W3 is the service certificate. Ex.W4 is

application to the Respondent.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has exhibited

12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

[भाग II— ण् ड 3(ii)]

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Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon’ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Addanki Main branch in terminating the services of

Workman Sri B. Subramanyam, a Messenger with effect from 6.4.86 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 6.4.86. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 6.4.86.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 6.4.86 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements entered

into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

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[PART II—SEC. 3(ii)]

category appointment with effect from 6.4.86 and it has also been communicated to all concerned that the panels of

temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 6.4.86 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

[भाग II— ण् ड 3(ii)]

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8993

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 6.4.86 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

6.4.86 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

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[PART II—SEC. 3(ii)]

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

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he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 6.4.86.

In this context, WW1 in his cross examination has stated that,

“ My service was for total no. of 197 days spread over with gaps from time to time during the period from 1980 to

1986 …..

I was not sponsored by any employment exchange. ….. It is not true to suggest that I never worked for 240 days in a

year continuously and I was casual worker I am not entitled for any relief.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 6.4.86. Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 6.4.86 rather he was disengaged in view of the non-availability of the work in the branch. Further, there was

direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/ temporary

Worker w.e.f. 6.4.86. Thus, such disengagement of Workman does not amount to termination. Moreover, the

Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of the I.D. Act,

1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240 days

continuously in a twelve months of calendar year just preceding from date of termination i.e., 6.4.86.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 6.4.86, therefore it was directed to issue suitable instructions not to make

temporary appointments from 6.4.86. There is no mention in this order that the Workman herein has been terminated

from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

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[PART II—SEC. 3(ii)]

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 6.4.86 and there after. It is settled law that the daily wagers are engaged by the employer depending upon the

availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1985 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation’s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

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India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in the

settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding nature

of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the I.D.

Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated

30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no

legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “The

Petitioner has not completed 240 days of service in a calendar year.” Although this witness was cross examined by

the Petitioner but the above statement of the management witness in chief remained uncontroverted, as the witness

MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the Petitioner that he has been

removed from service by the management illegally is untenable. Further, witness MW1 in his chief statement has

stated that, “The temporary messengers and Non-messengers were engaged by the bank in leave vacancies and for

administrative exigencies. The Petitioner did not work continuously for 240 days in any year or over a period of 36

months.” This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the

witness MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil

eligibility criteria of working days as required for regularisation. Therefore, he was not given regularisation in the

employment of the Respondent. Therefore, in view of the statement of MW1, the claim of the Petitioner that he was

refused regularization by the Respondent management illegally, is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

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[PART II—SEC. 3(ii)]

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon’ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon’ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

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45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1985 (1) SCC 71, therein Hon’ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

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[PART II—SEC. 3(ii)]

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon’ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 6.4.86. Ex.M6

is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

[भाग II— ण् ड 3(ii)]

भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948

9001

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri B. Subramanyam, Ex. Messenger by way of oral orders w.e.f. 6.4.86 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 15th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri B. Subramanyam

MW1: Sri I.S. Appa Rao

Documents marked for the Petitioner

Ex.W1:

Photocopy of transfer certificate

Ex.W2:

Photocopy of interview letter

Ex.W3:

Photocopy of service certificate

Ex.W4:

Photocopy of application to Management

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

9002

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

नई दिल्ली, 6 अगस् त, 2026

का.आ. 1725.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh;

ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्मकार श्री तेलागतोडत अक्का राओ ds chp

vuqca/k esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैिराबाि ds iapkV

(27/2003) प्रकाडित djrh gSA

[la- ,y-12025/01/2026-vkbZvkj(बी-I)-167]

सलोनी, उप डनिेिक

New Delhi, the 6th August, 2026

S.O. 1725.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (Ref. 27/2003) of the Central Government Industrial

Tribunal-cum-Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the

management of State Bank of India and their workman Sri Telagathoti Akka Rao.

[No. L-12025/01/2026- IR(B-I)-167]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 11th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 27/2003

[Old ID No. 273/99 of Labour Court, Guntur]

Between:

Sri Telagathoti Akka Rao,

S/o Ankaiah,

C/o V.N.S. Talkies,

Addanki.

……. Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9003

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Head Office,

Hyderabad.

3.

The Branch Manager,

State Bank of India,

Addanki branch.

4.

The Regional Manager,

State Bank of India,

Zonal Office,

Tirupathi.

…..Respondents

Appearances:

For the Petitioner :

M/s. M. Srinivasa Rao, Advocates

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Telagathoti Akka Rao who worked as Messenger (who will be referred to as the workman) has

filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank

of India seeking for reinstatement into service as Messenger/Sweeper duly granting all the consequential

benefits such as continuity of service, back wages and all other attendant benefits etc., and such other

reliefs as this court may deem fit. Earlier Petitioner has filed this dispute before the Labour Court, Guntur

for adjudication and later the same has been transferred to this Tribunal bearing ID No. 273/99, as per

orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001 and registered,

numbered in this Tribunal as LC No. 27/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along

with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference

was answered in favour of the Respondent and against the Workman. That said common award dated

17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along with

batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court vide its’

judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award dated

17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government Industrial

Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India was

directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals

9004

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is extracted

as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Messenger from 1978 to

1997, and has rendered unblemished service spreading over a period of about 12 years. The Respondent

has terminated services of Workman by oral orders with effect from March, 1997. Further, it is submitted

that the management of Respondent bank decided to give a chance to temporarily employed personnel

“found suitable for permanent appointment” by wait- listing them by offering permanent appointment or

waitlisting till such opportunity arises.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9005

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months after

1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36 months

after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee. The

Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of their

respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of the

settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon the

said agreement and the draft, a notification was issued in the newspapers. The last date for responding to

the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held. A

selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was

to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said

letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement

dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was to be

given, “to all eligible temporary employees for permanent appointments. The appointments were against

the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the enormity of

the problem an extension of the currency of the panel, eligible temporary employees who have been

empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter, “will

be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th

settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex

M5. That due to all these settlements which were extended by subsequent settlements thereby created

reasonable expectations in the list of the selected candidates arose with that it’s a question of time their

appointments or services would be regularized in the services of the bank. The Workman was working with

the bank on temporary basis was under the bonafide hope that sooner his services will be regularized with

the bank. He is thereby closed all his options elsewhere. It is needless to point out that employing person to

whom hope of employment in substantial terms was made is a facet of Article 21 of the Constitution of

India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

9006

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P .. by

order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In

view of the directions given by the High Court all candidates whose names appeared in the select panels

prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid upto

December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made alive

upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank

has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies

of circumstances and on account of the urgent need in its banks, it employed temporary employees in

subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the nature of

temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken by the

bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair labour

practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on the

other to ensure that benefits that a model employer will extend under various statutes to its employees is

not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

constituted in this regard. The Government of India guidelines made it clear that all the public sector banks

may follow the provisions laid down in the approach paper.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9007

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned. The approach paper also specify at para 6(c) that the

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were

also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect- that the panel of temporary employees and the panel of daily wage

employees will be operated to a particular period. Therefore, their cases will not be considered. The

Management herein relying upon this settlement in their impugned action. It is submitted that even the

settlement dated 9.1.1991 will not empower the management to terminate the services of the temporary

employees who are working in the bank services like the Workman herein as it does not specify the

termination of the employees. In fact there are so many vacancies wherein the Management has engaged

several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have

continued the similarly situated candidates like the Workman herein in the services of the bank and

consider their cases for absorption in view of the circulars issued by Central Government as well as the

directions of this Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued

by the Central Government, the Management should not have relied upon the settlement dated 9.1.1991.

Hence, the impugned action of the Management is illegal, unjust, violative of fundamental rights such as

Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties and

sought for absorption. Such employees in the bank services on permanent basis before the date fixed for

9008

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

carrying out the terms of settlement, the Court held that the members of the union had been empanelled in

the list, they were not regularized and the time was going to run out to the near future and the Respondent

bank and its officers cannot escape from the liability of enforcing the settlement which has been reached

and therefore directed that the bank and the officers shall implement the settlement dated 17.11.87 as

amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the candidates

with effect from March, 1997 which is arbitrary, discriminatory, contrary to their own guidelines and

violative of the constitutional provisions which are guaranteed in Chapter-III of the Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal

and unfair labour practice which cannot be allowed to be perpetuated. That the discontinuance of the

Workman after 31.3.97 who had served in the bank in any capacity amounts to retrenchment. It could not

have been done without any notice and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the

said action is violative of principles of natural justice guaranteed under Chapter III of the Constitution of

India. This amounts to retrenchment without one month's notice and taken in view of such notice. Thus, the

main proceedings issued by the Respondent is without jurisdiction and is arbitrary, illegal and therefore

liable to be quashed. That the alleged Memorandum of Understanding dated 27.2.97, Ex.M5 does not own

any legal entity, as the said Memorandum of Understanding is not published anywhere to brought to the

notice of the Workman whose rights are being affected. It is submitted that Management did not adhere to

the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled

candidates like the Workman here. It is pertinent to mention here that the Respondent Management sent

letters to the all similarly situated candidates like the Workman in the month of June, 1997, subsequent to

the passing of impugned termination orders. After knowing the facts that the candidates are litigating, the

Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates

like the Workman even in temporary vacancies till they are absorbed permanently in regular vacancies.

Hence, the action of the Respondent Management terminating the services of the Workman by oral order

dated 31.3.97 is unjust, illegal, violative of principles of natural justice and hence, the Management be

directed to reinstate and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate

staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions

imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to

engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc., depending on the

availability of work on purely temporary basis for the smooth and uninterrupted functioning of the

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9009

branches. It is submitted that the All India State Bank of India Staff Federation which represents majority

of the employees in the State Bank of India comprising about 98% of the work force as its' members

espoused the cause of temporary employees who have put in less than 240 days of temporary service in 12

calendar months in the bank and who were ineligible for any protection under Industrial Disputes Act,

1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

temporary employees as categorized would be given a chance for being considered for permanent

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear that

all the public sector banks may follow the provisions laid down in the approach paper. The approach paper

specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit of

Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in 12

consecutive months or less, a settlement could be avoided and however if the Management so desired they

could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned that

only those temporary employees who had put in temporary service of 90 days or more days after 1.1.82

would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by

way of a further concession entered into settlements. Even in respect of those who had put in less than 90

days and also the bank went a step further and said those persons who are working after 1975 were also

considered. Hence, there was a genuine effort on the part of the Respondent bank to provide as many as

possible jobs subject to the availability of the vacancies. However, para 6 (k) of the approach paper made it

clear that it is a one time, exercise in full and final, settlement of all the claims and disputes for the past

period, in respect of temporary workmen covered by the settlement. Another settlement was entered on

9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and separate panel

was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies arising

between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers, they can be

considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

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[PART II—SEC. 3(ii)]

absorption. These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees. The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. The Management bank has not violated any of the

provisions of the terms of the said settlement. That the very preparation and maintenance of panel is in

compliance of the terms agreed under these settlements. These settlements were time bound and they

ceased to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

[भाग II—खण् ि 3(ii)]

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9011

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management. Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

permanent through back door entry, which would not only be contrary to the settlements but also to

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge. Thereafter

the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the Hon'ble

Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore, reference

to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the same has

already been set aside. The observations made in the Judgements cannot be relied upon for any purpose

what so ever. The question of operation of Sec.25F would not come into play. Further the issue is covered

by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts. Hence, the

reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in

evidence which has been exhibited as Ex.W1 to W6. Further, the Workman has filed photocopies of

documents in support of his claim which are discussed as under:-

Ex.W1 is the caste certificate. Ex.W2 is the interview call letter. Ex.W3 is the service certificate. Ex.W4 is

the service certificate. Ex.W5 is the transfer certificate. Ex.W6 is the service certificate.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has

exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the

Settlement dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the

conciliation proceedings dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the

Memorandum of Understanding dt. 27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel.

Ex.M9 is the Particulars of 1989 Non-Messengerial Panel. Ex.M10 is the Particulars of 1992 General

Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court of A.P. in Writ Appeal No.86/98

dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP No. 11886-11888 of 1998

dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of

various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

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[PART II—SEC. 3(ii)]

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Addanki main branch in terminating the

services of Workman Sri T. Akka Rao, a Messenger with effect from March, 1997 is

justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid 5th

settlement, is arbitrary and illegal.

[भाग II—खण् ि 3(ii)]

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9013

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from March, 1997. The extract of the said

letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

March, 1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from March, 1997 due to reason of lapse of both panels i.e., 1989 & 1992 on

31.3.1997 as per terms of settlements entered into by both parties. Further, the contents of the subsequent

letter dated 27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank

of India not to make any temporary messengerial category appointment with effect from March, 1997 and

it has also been communicated to all concerned that the panels of temporary employees and daily wagers

maintained by Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been

issued by Respondent management that goes to reveal that the said office order has been issued to this

effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been decided by

the competent authority that no one onwards, no further daily labour or temporary employees/appointments

should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the aforesaid orders

that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from March, 1997 because of the lapsed of panel of temporary

workers and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is

contained in the 5th settlement which has been arrived at between the parties on dated 30.7.1996 with the

consensus of both the parties. Therefore, Workman can not challenge the terms and conditions contained in

settlement dated 30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India

and State Bank of India Staff Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said

Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

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[PART II—SEC. 3(ii)]

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before a

competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing the

date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9015

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

Workmen and the Workman as individual do not come into picture. Workman in the instant case has work

as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be utilized

for absorption of such Workman to permanent post in order of their seniority in the list. The Settlement

dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation under

Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position and it is

agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both the

panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of vacancy

of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management of State

Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on March, 1997 without issuing any notice or paying any salary or compensation

in lieu thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context,

the Workman has examined himself as WW1 who has reiterated that Workman has been terminated from

service by Respondent on March, 1997 without notice of salary or compensation in lieu thereof. Before

examining the claim of the Workman on merit it would be apposite to reproduce the provision contained

under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

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[PART II—SEC. 3(ii)]

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

conclusion that 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 period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

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[PART II—SEC. 3(ii)]

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., March, 1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange.”

“It is not true to suggest that I never worked for 240 days in a year continuously…”

Further, MW1 in his cross examination has stated in cross examination that, “The Petitioner has not

completed 240 days of service in a calendar year.”

This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the

witness MW1 on this point. Thus, it is clear from the testimony of WW1 and also MW1 that the Workman

had not worked for 240 days continuously in any 12 months of a calendar year just preceding from the date

of his termination in the Respondent bank. Therefore, Workman failed to establish his plea by his oral and

documentary evidence that he had worked for 240 days continuously in calendar year just preceding from

the date of his termination i.e., March, 1997. Thus, the claim of the Workman that he has been terminated

by oral order without issuing notice or payment in lieu after termination, in contravention of Section 25 F

of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the Workman in support of

his claim, number of days worked with the Respondent goes to reveal that the Workman had worked

intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger

in the Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force

in the argument advanced by the Respondent that in the instant matter, Workman was not terminated from

service by order dated March, 1997 rather he was disengaged in view of the non-availability of the work in

the branch. Further, there was direction issued by the Head Office of the Respondent authority not to

engage any daily wager Workman/ temporary Worker w.e.f. March, 1997. Thus, such disengagement of

Workman does not amount to termination. Moreover, the Workman failed to prove his claim that he was

terminated in contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to establish his plea

by any oral or documentary evidence that he had worked for 240 days continuously in a twelve months of

calendar year just preceding from date of termination i.e., March, 1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of

1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office

not to make any temporary appointments in messengerial cadre from March, 1997, therefore it was directed

to issue suitable instructions not to make temporary appointments from March, 1997. There is no mention

in this order that the Workman herein has been terminated from service by this order.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9019

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is directed

to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these circulars do

not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank

by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman

that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the

service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes to reveal

that he had worked as a daily wager for which he has been paid wages according to number of working

days. As there was an order for prohibition for engaging temporary workmen, in the bank, therefore,

Workman could not be engaged by the Respondent for work from March, 1997 and there after. It is settled

law that the daily wagers are engaged by the employer depending upon the availability of work and as the

work was not available the Workman was not engaged further by the Respondent management. Therefore,

the Workman on the ground of number of days he had worked in the Respondent bank cannot claim any

right to reinstate him into the employment. As the Workman failed to prove the mandatory condition of

240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the disengagement

of Workman from work can not be termed in contravention of provision contained under Sec.25F and 25 B

of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

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[PART II—SEC. 3(ii)]

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and that

thereafter the said panels would lapse. It was also agreed that within the framework of the above

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further, Respondent

contended that on 27.2.1997 a memorandum of understanding was also signed between the Federation’s

affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial

vacancies were sanctioned to the circle of the Management bank and it was agreed that these vacancies

may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties. It

is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot be

extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997 in

view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As the

lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have

held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9021

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion and

finding given at Point No. I regarding binding nature of Settlements and terms and conditions enumerated

therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the considered view that

life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and plea of Workman

that the panel shall continue even after 31.3.1997 till last man absorbed has no legal force and same is

untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies falls

upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to the

permanent post were seniors in number of working days in panel list and Workman herein was junior to

those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence

that, “The Petitioner did not work continuously for 240 days in any year or over a period of 36 months.”

Further, he has stated that, “ the Petitioner was appointed as temporary messenger and Petitioner’s services

were discontinued whenever their services were not needed.” Although this witness was cross examined by

the Petitioner but the above statement of the management witness in chief remained uncontroverted, as the

witness MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the Petitioner that

he has been removed from service by the management illegally is untenable. Further, witness MW1 in his

chief statement has stated that, the workman was engaged in leave vacancies in the bank on Temporary

basis. This witness has stated in cross examination that, “The Petitioner has not completed 240 days of

service in a calendar year.” This statement of witness MW1 remained uncontroverted as the Petitioner did

not cross examine the witness MW1 on this point. Therefore, the Petitioner Workman as per number of

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[PART II—SEC. 3(ii)]

working days, failed to fulfil eligibility criteria of working days as required for regularisation. Therefore,

he was not given regularisation in the employment of the Respondent. Moreover, the Workman witness

WW1 in his cross examination has admitted the fact that he do not know whether any junior to him in 1989

panel were regularised in the services. Further, WW1 states that he do not know particulars of the

settlement reached between the management and staff union. Therefore, in view of the statement of WW1

in cross examination, the claim of the Petitioner that he was refused regularization by the Respondent

management illegally, is untenable. Thus, there is no evidence on record that bank has given the

appointment to the temporary employees as well as daily wagers from the panel list 1989 and 1992 in

breach of seniority of the temporary employees in the list. There is no evidence of jumbling in the panel list

to make appointment of any permanent Workman in breach of the seniority. Therefore, I am constrained to

hold that the Respondent Management has appointed the workmen from panel list in order of seniority and

there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of

panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of

Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant

therein Hon’ble Supreme Court have has laid down principle regarding regularization of the Workman on

permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization of the workmen

to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

labour practice by not filling up permanent posts even though such posts are available and by continuing

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9023

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed

to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies were

existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of his

seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also not

acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross examination

has himself admitted this fact that, some of the temporary employees whose names were included in the

panel were given regular appointment in the bank in order of their seniority in the panel. The Workman

failed to show that there was any breach of terms of settlement has been committed by the Respondent in

appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

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[PART II—SEC. 3(ii)]

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9025

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities

must consider his case for regularization provided he is eligible and qualified according to the rules and

his service record is satisfactory and his appointment does not run counter to the reservation policy of the

state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1

in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were

entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994

for those temporary employees who has worked on scale wages. Further, MW1 states that two different

panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank. There are

four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and Visakhapatnam.

MW1 states that the temporary employees so empanelled were given permanent absorption depending

upon the vacancies so arise strictly in terms of the settlement. MW1 states that on 9.6.1995 conciliation

proceeding was held before the RLC(C), Hyderabad and in said proceedings it was decided that the panels

will be kept live up to 31.3.1997 and vacancies will be filled from both the lists concurrently. A copy of the

said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another settlement was

entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies arising

up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel

so prepared were to be considered against vacancies arising from January 1995 to December 1996,

thereafter the said panels lapse. MW1 states that it was also agreed that all the non- messenger positions in

subordinate cadre including part time attendants specially provided as leave reserve will be filled before

31.3.1997 and as regards to non-messengerial positions it is agreed that all such posts sanctioned and fallen

vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus in both the cases

empanelled list were lapsed on March, 1997. Ex.M6 is the copy of the settlement dated 30.7.1996. Further,

witness states that on 27.2.1997 a memorandum of understanding was reached between the SBI and SBI

Staff Federation providing that both the panels above mentioned will lapse on 31.3.1997. Ex.M7 is the

copy of the memorandum of understanding and Ex.M8 is the copy of the statements giving the particulars

9026

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non- messenger panel, Ex.M10

is the copy of statement of 1992 panel. Further, witness states that petitioner was included in the 1989

panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per

seniority, number of days of temporary service put in by them in the bank in the given period. Further,

MW1 states petitioner was not sponsored by any employment exchange he did not undergo the regular

process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary

employees were terminated from service by the bank. Further, MW1 states that the vacancies were filled

up on regular basis with the temporary employees from the panels and these panels were expired in terms

of the settlements so reached and there were no vacancies to absorb such employees. Thus, witness MW1

has proved the documents Ex.M1 to Ex.M12 and also contentions made in the counter. However, MW1

was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross examination so as

to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on 31.3.1997

and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels

were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized

after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the

aforesaid testimony of the MW1 in re-examination in the absence of cross examination remained

uncontraverted, the claim of the Workman that he was entitled for absorption in permanent post in the

branch of Respondent Management on the basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman

is not entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri T. Akka Rao, Ex. Messenger by way of oral orders w.e.f. March, 1997 is justified.

Hence, the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman

sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 11th day of June, 2026.

IRFAN QAMAR, Presiding Officer

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9027

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri T. Akka Rao

MW1: Sri I.S. Appa Rao

Documents marked for the Petitioner

Ex.W1:

Photocopy of caste certificate

Ex.W2:

Photocopy of interview call letter

Ex.W3:

Photocopy of service certificate

Ex.W4:

Photocopy of Service certificate

Ex.W5:

Photocopy of transfer certificate

Ex.W6:

Photocopy of service certificate

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C)

dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 8 अगस् त, 2026

का.आ. 1726.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj भारतीय सुरक्षा बल ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k&सह&Je U;k;ky;] हैिराबाि ds iapkV (पहचान la[;k

38/2022) dks प्रकाडित djrh gS]]

[la- एल-22013/01/2026-आईआर(सी.एर्-I)]

जयिीप यािव, उप डनिेिक

9028

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

New Delhi, the 8th August, 2026

S.O. 1726.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (ID. No. 38/2022) of the Central Government

Industrial Tribunal-cum-Labour Court, HYDERABAD as shown in the Annexure, in the industrial

dispute between the Management of Indian Security Force and their workmen,

[No. L-22013/01/2026 – IR (CM-I)]

JAIDEEP YADAV, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 16th day of July, 2026

INDUSTRIAL DISPUTE No. 38/2022

Between:

Smt. Atta Appala Konda,

W/o Atta Appa Rao, D.No.14-21/2,

Donkada, Aganampudi,

Gajuwaka, Visakhapatnam-530046 …...Petitioner

AND

1. M/s Indian Security Force,

D.No.6-2-27, 27/A & 28/1F-24,

Unit No.124, 1st Floor,

Down Town Mall Besides Lotus Hospital,

Lakdikapul, Hyderabad - 500004.

2. The Director,

Homi Baba Cancer Hospital & Research Centre,

Aganampudi (V), Gajuwaka (M),

Visakhapatnam -530053 ....… Respondents

Appearances:

For the Petitioner : None

For the Respondent: None

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9029

AWARD

The Government of India, Ministry of Labour by its order No. 8/7/2022 -B1 dated 11.02.2022

referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal

between the management of M/s Indian Security Force Agency, a contractor of Homi Baba Cancer

Hospital & Research Centre, Vishakhapatnam, and their workman. The reference is,

SCHEDULE

"Whether the action of the management of M/s Indian Security Force Agency, a contractor of Homi Baba

Cancer Hospital & Research Centre, Visakhapatnam in terminating the services of Smt Atta Appala

Konda, Ex-MTS is legal and justified or not? If not, to what relief the workman is entitled to?

The reference is numbered in this Tribunal as I.D. No 38/2022 and notices were issued to the

parties concerned.

2.

On the date fixed for appearance and filing of claim statement Petitioner remained absent.

Despite sufficient opportunity, Petitioner has failed to appear and did not file any claim statement.

Hence, a No Claim Award is passed. The reference is answered accordingly.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, P.A., corrected and signed by me on this the 16th

day of July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई दिल्ली, 8 अगस् त, 2026

का.आ. 1727.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj एस सी सी एल ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd

fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k&सह&Je U;k;ky;] हैिराबाि ds iapkV (पहचान la[;k

5@2023) dks प्रकाडित djrh gS]]

[la- एल-22013/01/2026-आईआर(सी.एर्-II)]

जयिीप यािव, उप डनिेिक

9030

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

New Delhi, the 8th August, 2026

S.O. 1727.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (ID. No. 5/2023) of the Central Government

Industrial Tribunal-cum-Labour Court, HYDERABAD as shown in the Annexure, in the industrial

dispute between the Management of SCCL,, and their workmen,

[No. L-22013/01/2026 – IR (CM-II)]

JAIDEEP YADAV, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 15th day of July, 2026

INDUSTRIAL DISPUTE LC No.5/2023

Between:

Vadapalli Ramesh babu,

S/o Nagaiah,

R/o: 4-32. Srinagar Colony,

Penagadapa (Rural),

Kothagudem, Telangana-507103 ………Petitioner

AND

1. Singareni Collieries Company Limited,

Head Office: Kothagudem-507 101,

Khammam District, Telangana

2. Singareni Collieries Company Limited,

J.V.R OC-II Sattupalli,

SCCL Ltd, Khammam.

3. M/s Sushee Hitech Projects Pvt Ltd,

Jubilee Hills Road No.12,

Hyderabad-500 034,

Camp Office: JVR OC-II OB Removal Contractor. ...….Respondents

Appearances:

For the Petitioner:

Sri V. Srinivasa Rao, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate (For R1 & R2)

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9031

AWARD

Sri Vadapalli Ramesh Babu who worked as Sany Dumper Operator (who will be referred to as the

workman) has filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the

Respondents Singareni Collieries Company Limited, Respondents herein to reinstate the petitioner into

service with continuity and with all other attendant benefits and pass such other and further order or orders

as this Hon'ble court may deem fit and proper.

2.

Perused the record. Petitioner has filed the present petition u/s 2A(2) of I.D Act, 1947 to set aside

his termination order dated 13.06.2022, and sought reinstatement into the service. Although the Petitioner

has filed chief statement of affidavit in evidence but did not turn up for cross examination despite sufficient

opportunity. Therefore, evidence was closed. The claim of the Petitioner is not substantiated by evidence,

therefore, 'No dispute' award is passed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K.Phani Gowri, P.A., corrected and signed by me on this the 15th

day of July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई दिल्ली, 8 अगस् त, 2026

का.आ. 1728.—]vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj एस सी सी एल ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd

fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k&सह&Je U;k;ky;] हैिराबाि ds iapkV (पहचान la[;k

4/2026) dks प्रकाडित djrh gS]

[la- एल-22013/01/2026-आईआर(सी.एर्-II)]

जयिीप यािव, उप डनिेिक

New Delhi, the 8th August, 2026

S.O. 1728.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (ID. No. 4/2026) of the Central Government Industrial

Tribunal-cum-Labour Court, HYDERABAD as shown in the Annexure, in the industrial dispute

between the Management of SCCL, and their workmen,

[No. L-22013/01/2026 – IR (CM-II)]

JAIDEEP YADAV, Dy. Director

9032

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 5th day of February, 2026

INDUSTRIAL DISPUTE No. 4/2026

Between:

Shri M. David Kumar,

Dr. No. 1-85-17/2, Siri Residency,

APHB Colony, Housing Board,

West Godavari District,

Andhra Pradesh – 534101.

....Petitioner

AND

1. M/s. Kadali Venkateswara Rao Security Agency,

Rep. By Shri Kadali Venkateswara Rao, Prop,

D.No.3-105/1, Pandiripuram 7th Lane,

Chilakaluripeta Town,

Paladu District, Andhra Pradesh – 522616.

2. Food Corporation of India,

Represented by Divisional Manager,

Divisional Office,

Eluru District, Andhra Pradesh – 534001. …..Respondents

Appearances:

For the Petitioner: None

For the Respondent: None

AWARD

The Government of India, Ministry of Labour by its order No. 8/34/2025-B1 dated 29.10.2025

referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal

between the management of M/s. Kadali Venkateswara Rao Security Agency contractor of Food

Corporation of India, and their workman. The reference is,

SCHEDULE

1. “Whether the action of the employer M/s. Kadali Venkateswara Rao Security Agency, contractor

of Food Corporation of India, Divisional Office, Eluru in terminating the services of the workman

Shri M. David Kumar is justified? If not, what relief is the workman entitled? If yes, to what

terminal benefits is the workman entitled?

2. Whether the action of the employer M/s. Kadali Venkateswara Rao Security Agency, contractor of

Food Corporation of India, Divisional Office, Eluru in discharging or dismissing the workman

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9033

amounts to unfair labour practice within the meaning of item 5 of part I of the Fifth Schedule of the

Industrial Disputes Act, 1947, if so, to what relief, the workman is entitled to.”

The reference is numbered in this Tribunal as I.D. No 4/2026 and notices were issued to the parties

concerned.

2.

On the date fixed for appearance and filing of claim statement Petitioner remained absent. Notice

issued to the Petitioner was returned with the endorsement “No such person found at the address.” Service

upon the Petitioner is held to be sufficient. No other address of the Petitioner is available on record. Since

the Petitioner has failed to file any claim statement despite sufficient opportunity, a ‘No Claim Award’ is

passed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, P.A., corrected and signed by me on this the

5th day of February, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई दिल्ली, 8 अगस् त, 2026

का.आ. 1729.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj एस सी सी एल ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd

fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k&सह&Je U;k;ky;] हैिराबाि ds iapkV (पहचान la[;k

1/2020) dks प्रकाडित djrh gS]

[la- एल-22013/01/2026-आईआर(सी.एर्-II)]

जयिीप यािव, उप डनिेिक

New Delhi, the 8th August, 2026

S.O. 1729.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (ID. No. 1/2020) of the Central Government

Industrial Tribunal-cum-Labour Court, HYDERABAD as shown in the Annexure, in the industrial

dispute between the Management of SCCL, and their workmen,

[No. L-22013/01/2026 – IR (CM-II)]

JAIDEEP YADAV, Dy. Director

9034

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 8th day of July, 2026

INDUSTRIAL DISPUTE No. 1/2020

Between:

Sri Gunda Rajulu, Ex-Coal Filler,

KK5 Incline, SCC Ltd., 2nd Incline Basti,

Asifabad, Adilabad District – 504251 …...Petitioner

AND

The General Manager,

M/s Singreni Collieries Co. Ltd,

Mandamarri Area, Mancherial District ..… Respondent

Appearances:

For the Petitioner : None

For the Respondent: None

AWARD

The Government of India, Ministry of Labour by its order No. 1/20/2019-B1 dated 24.10.2019

referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal

between the management of M/s Singreni Collieries Co. Ltd and their workman. The reference is,

SCHEDULE

"Whether the action of the management of M/s Singreni Collieries Co. Ltd, KK-5 Mine in terminating the

services of Sri gunda Rajulu, Ex-Coal Filler w.e.f. 26.09.2001 is justified or not. If not, to what relief the

workman is entitled to ?”

The reference is numbered in this Tribunal as I.D. No 1/2020 and notices were issued to the parties

concerned.

2.

On the date fixed for appearance and filing of claim statement Petitioner remained absent. Notice

issued to the Petitioner has been returned unserved with the endorsement, "No such person; address left.

Returned to sender." Despite the issuance of notice, the Petitioner has remained absent. In the absence of

the claim statement, a No Claim Award is passed. The reference is answered accordingly.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, P.A., corrected and signed by me on this the 8th

day of July, 2026.

IRFAN QAMAR, Presiding Officer

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9035

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई दिल्ली, 8 अगस् त, 2026

का.आ. 1730.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj एस सी सी एल ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd

fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k&सह&Je U;k;ky;] हैिराबाि ds iapkV (पहचान la[;k

116/2018) dks प्रकाडित djrh gS]

[la- एल-22012/126/2018-आईआर(सी.एर्-II)]

जयिीप यािव, उप डनिेिक

New Delhi, the 8th August, 2026

S.O. 1730.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (ID. No. 116/2018) of the Central Government

Industrial Tribunal-cum-Labour Court, HYDERABAD as shown in the Annexure, in the industrial

dispute between the Management of SCCL, and their workmen,

[No. L-22012/126/2018 – IR (CM-II)]

JAIDEEP YADAV, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 20th day of July, 2026

INDUSTRIAL DISPUTE No. 116/2018

Between:

Sri Routhu Kanakaiah,

Ex-Badli Filler,

H. No. 21-4-26, Radhagambala Basthi,

Bellampalli (V&M) District,

Mancherial – 504251 ......Petitioner

9036

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

AND

The General Manager,

M/s Singareni Collieries Co. Ltd.,

Sreerampur Area,

Sreerampur – Dist.

Mancherial - 504303 …… Respondent

Appearances:

For the Petitioner : None

For the Respondent: M/s P.A.V.V.S. Sarma, Advocates

AWARD

The Government of India, Ministry of Labour by its order No. L-22012/126/2018 – IR(CM-II)

dated 22.11.2018 referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 for

adjudication to this Tribunal between the management of M/s Singareni Collieries Co. Ltd, and their

workman. The reference is,

SCHEDULE

“Whether the action of The General Manager, M/s Singareni Collieries Co. Ltd., Sreerampur area,

Manchrial Dist. (TS) in terminating the services of Sri Routhu Kanakaiah, Ex-Badli Filler, RK-6 inc.,

SCCL, Sreerampur area with effect from 13.10.1998 is justified or not? If not, to what relief the applicant

is entitled for?"

The reference is numbered in this Tribunal as I.D. No 116/2018 and notices were issued to the

parties concerned.

2.

On the date fixed for appearance and filing of claim statement Petitioner remained absent. Despite

service of notice and sufficient opportunity didn't filed any claim statement. Petitioner opportunity closed.

Petitioner has failed to appear and did not file any claim statement. Hence, in absence of claim statement

'no claim' Award is passed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, P.A., corrected and signed by me on this the 20th

day of July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9037

नई दिल्ली, 8 अगस् त, 2026

का.आ. 1731.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj एस सी सी एल ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd

fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k&सह&Je U;k;ky;] हैिराबाि ds iapkV (पहचान la[;k

73@2015) dks प्रकाडित djrh gS]

[la- एल-22012/39/2015-आईआर(सी.एर्-II)]

जयिीप यािव, उप डनिेिक

New Delhi, the 8th August, 2026

S.O. 1731.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (ID. No. 73/2015) of the Central Government

Industrial Tribunal-cum-Labour Court, HYDERABAD as shown in the Annexure, in the industrial

dispute between the Management of SCCL,, and their workmen,

[No. L-22012/39/2015 – IR (CM-II)]

JAIDEEP YADAV, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 22nd day of July, 2026

INDUSTRIAL DISPUTE No. 73/2015

Between:

Sri Md. Rabbani,

S/o M.A. Gani,

H. No. 19-11-128, Shombonipet (unertly, Gate),

Warangal (M) – 506005

Warangal Distt. (Telangana State)

Warangal - ......Petitioner

AND

The General Manager,

M/s Singareni Collieries Company Limited,

Ramagundam – I Area, Godavarikhani – 505209

Karimnagar Distt. (Telangana State).

Karimnagar (Telangana) - …… Respondent

9038

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Appearances:

For the Petitioner : M/s. A. Sarojana & K.Vasudeva Reddy, Advocates

For the Respondent:

M/s. Nandigam Krishna Rao & N.S. Pattabhi Rama Rao, Advocates

AWARD

The Government of India, Ministry of Labour by its order No. L-22012/39/2015 (IR(CM-II)) dated

29.07.2015 referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to

this Tribunal between the management of M/s Singareni Collieries Company Limited, and their workman.

The reference is,

SCHEDULE

Whether the action of the General Manager, M/S. Singareni Collieries Co. Ltd., Ramagundam-1

Area, Godavarikhani, Karimnagar Dist., in terminating the services of Shri Md. Rabbani, Coal Filler,

GDK-1 & 3 Inc., SCCL, Ramagundam-I Area, Godavarikhani with the effect from 29/03/2001 is justified

or not? If not, to what relief the applicant is entitled for?”

The reference is numbered in this Tribunal as I.D. No 73/2015 and notices were issued to the

parties concerned.

2.

On the date fixed for Petitioner evidence, Petitioner remained absent. Despite sufficient

opportunity accorded to the Petitioner, he did not adduce any evidence in support of his claim, opportunity

closed. The claim of Petitioner has not been substantiated by any evidence, hence, 'No-Claim' award is

passed. Reference is answered accordingly.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, P.A., corrected and signed by me on this the

22th day of July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9039

नई दिल्ली, 8 अगस् त, 2026

का.आ. 1732.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa] dsUnzh;

ljdkj एस सी सी एल ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V vkS|ksfxd

fookn esa dsUnzh; ljdkj vkS|ksfxd vf/kdj.k&सह&Je U;k;ky;] हैिराबाि ds iapkV (पहचान la[;k

11@2015) dks प्रकाडित djrh gS]

[la- एल-22012/84/2014-आईआर(सी.एर्-II)]

जयिीप यािव, उप डनिेिक

New Delhi, the 8th August, 2026

S.O. 1732.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (ID. No. 11/2015) of the Central Government

Industrial Tribunal-cum-Labour Court, HYDERABAD as shown in the Annexure, in the industrial

dispute between the Management of SCCL,, and their workmen,

[No. L-22012/84/2026–IR(CM-II)]

JAIDEEP YADAV, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 2nd day of February, 2026

INDUSTRIAL DISPUTE No. 11/2015

Between:

The President (Sri Bandari Satyanarayana),

Telengana Trade Union Council,

Raj Kumar Complex, Sai Baba Temple Road,

Jaffer nagar, Mancherial -504208.

Adilabad Dist

…...Petitioner

AND

The General Manager,

M/s Singreni Collieries Co. Ltd,

Sreerampur Area,

Sreerampur - 504303

..… Respondent

Appearances:

For the Petitioner : None

For the Respondent: None

9040

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

AWARD

The Government of India, Ministry of Labour by its order No. L-22012/84/2014 (IR(CM-II)) dated

23.01.2015 referred the following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to

this Tribunal between the management of M/s Singreni Collieries Co. Ltd and their workman. The

reference is,

SCHEDULE

"Whether the action of General Manager, M/s. Singareni Collieries Co. Ltd., Mandamarri Area,

Mandamarri, Adilabad Distt. in terminating the services/Disempannelling the service of Sri Karre

Thirupathi, Ex- Badly Coal Filler. MK-4 Inc., Mandamarri Area with effect from 09.10.1998 is justified or

not? If not, to what relief the applicant is entitled for?"

The reference is numbered in this Tribunal as I.D. No 11/2015 and notices were issued to the

parties concerned.

2.

On the date fixed for appearance and filing of claim statement Petitioner remained absent. Despite

service of notice and sufficient opportunity being afforded, the petitioner failed to file any claim statement.

It seems petitioner do not want to prosecute his case. Therefore, ‘no-claim’ award is passed. Reference is

ordered accordingly.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, P.A., corrected and signed by me on this the

2nd day of February, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई दिल्ली, 6 अगस् त, 2026

का.आ. 1733.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh;

ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्मकार श्री गौड़ापेरी ललगयाह ds chp vuqca/k

esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैिराबाि ds iapkV

(30/2003) प्रकाडित djrh gSA

[la- ,y-12025/01/2026-vkbZvkj(बी-I)-168]

सलोनी, उप डनिेिक

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9041

New Delhi, the 6th August, 2026

S.O. 1733.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (Ref. 30/2003) of the Central Government Industrial

Tribunal-cum-Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the

management of State Bank of India and their workman Sri Gowdaperi Lingaiah.

[No. L-12025/01/2026- IR(B-I)-168]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 16th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 30/2003

[Old ID No. 270/99 of Labour Court, Guntur]

Between:

Sri Gowdaperi Lingaiah,

S/o Adam,

Sundar Nagar,

Pakala Road, S. Konda,

Prakasam distt.

… Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Branch Manager,

State Bank of India,

Kandukur branch.

9042

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

4.

The Regional Manager,

State Bank of India,

Zonal office,

Tirupathi.

…..Respondents

Appearances:

For the Petitioner :

Sri Macherla Rangaiah, Advocate

For the Respondent:

Sri K. Rathanga Pani Reddy, Advocate

AWARD

Sri Gowdaperi Lingaiah who worked as Messenger (who will be referred to as the workman) has

filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank

of India seeking for reinstatement into service as Messenger duly granting all the consequential benefits

such as continuity of service, back wages and all other attendant benefits etc., and such other reliefs as this

court may deem fit. Earlier Petitioner has filed this dispute before the Labour Court, Guntur for

adjudication and later the same has been transferred to this Tribunal bearing ID No. 270/99, as per orders

of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in

this Tribunal as LC No. 30/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along

with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference

was answered in favour of the Respondent and against the Workman. That said common award dated

17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along with

batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court vide its’

judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award dated

17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government Industrial

Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India was

directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals

were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is extracted

as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9043

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Messenger from December,

1985 to 6.4.86 and has rendered unblemished service spreading over a period of about 12 years. The

Respondent has terminated services of Workman by oral orders with effect from 6.4.86. Further, it is

submitted that the management of Respondent bank decided to give a chance to temporarily employed

personnel “found suitable for permanent appointment” by wait- listing them by offering permanent

appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months after

1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36 months

after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

9044

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee. The

Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of their

respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of the

settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon the

said agreement and the draft, a notification was issued in the newspapers. The last date for responding to

the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held. A

selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was

to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said

letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement

dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was to be

given, “to all eligible temporary employees for permanent appointments. The appointments were against

the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the enormity of

the problem an extension of the currency of the panel, eligible temporary employees who have been

empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter, “will

be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th

settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex

M5. That due to all these settlements which were extended by subsequent settlements thereby created

reasonable expectations in the list of the selected candidates arose with that it’s a question of time their

appointments or services would be regularized in the services of the bank. The Workman was working

with the bank on temporary basis was under the bonafide hope that sooner his services will be regularized

with the bank. He is thereby closed all his options elsewhere. It is needless to point out that employing

person to whom hope of employment in substantial terms was made is a facet of Article 21 of the

Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P .. by

order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In

view of the directions given by the High Court all candidates whose names appeared in the select panels

prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid upto

December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made alive

upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9045

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank

has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies

of circumstances and on account of the urgent need in its banks, it employed temporary employees in

subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the nature of

temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken by the

bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair labour

practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on the

other to ensure that benefits that a model employer will extend under various statutes to its employees is

not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

constituted in this regard. The Government of India guidelines made it clear that all the public sector banks

may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned. The approach paper also specify at para 6(c) that the

9046

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were also

considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect- that the panel of temporary employees and the panel of daily wage

employees will be operated to a particular period. Therefore, their cases will not be considered. The

Management herein relying upon this settlement in their impugned action. It is submitted that even the

settlement dated 9.1.1991 will not empower the management to terminate the services of the temporary

employees who are working in the bank services like the Workman herein as it does not specify the

termination of the employees. In fact there are so many vacancies wherein the Management has engaged

several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

High Court without considering the cases of the similarly situated candidates like the Workman herein. It

is submitted inspite of engaging fresh candidates as is now being done by the Management they would

have continued the similarly situated candidates like the Workman herein in the services of the bank and

consider their cases for absorption in view of the circulars issued by Central Government as well as the

directions of this Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued

by the Central Government, the Management should not have relied upon the settlement dated 9.1.1991.

Hence, the impugned action of the Management is illegal, unjust, violative of fundamental rights such as

Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties and

sought for absorption. Such employees in the bank services on permanent basis before the date fixed for

carrying out the terms of settlement, the Court held that the members of the union had been empanelled in

the list, they were not regularized and the time was going to run out to the near future and the Respondent

bank and its officers cannot escape from the liability of enforcing the settlement which has been reached

and therefore directed that the bank and the officers shall implement the settlement dated 17.11.87 as

amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9047

candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary to their own guidelines

and violative of the constitutional provisions which are guaranteed in Chapter-III of the Constitution

of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal

and unfair labour practice which cannot be allowed to be perpetuated. That the discontinuance of the

Workman after 31.3.97 who had served in the bank in any capacity amounts to retrenchment. It could not

have been done without any notice and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the

said action is violative of principles of natural justice guaranteed under Chapter III of the Constitution of

India. This amounts to retrenchment without one month's notice and taken in view of such notice. Thus,

the main proceedings issued by the Respondent is without jurisdiction and is arbitrary, illegal and therefore

liable to be quashed. That the alleged Memorandum of Understanding dated 27.2.97, Ex.M5 does not own

any legal entity, as the said Memorandum of Understanding is not published anywhere to brought to the

notice of the Workman whose rights are being affected. It is submitted that Management did not adhere to

the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled

candidates like the Workman here. It is pertinent to mention here that the Respondent Management sent

letters to the all similarly situated candidates like the Workman in the month of June, 1997, subsequent to

the passing of impugned termination orders. After knowing the facts that the candidates are litigating, the

Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates

like the Workman even in temporary vacancies till they are absorbed permanently in regular vacancies.

Hence, the action of the Respondent Management terminating the services of the Workman by oral order

dated 31.3.97 is unjust, illegal, violative of principles of natural justice and hence, the Management be

directed to reinstate and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-

ordinate staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the

restrictions imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent

bank used to engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc.,

depending on the availability of work on purely temporary basis for the smooth and uninterrupted

functioning of the branches. It is submitted that the All India State Bank of India Staff Federation which

represents majority of the employees in the State Bank of India comprising about 98% of the work force as

its' members espoused the cause of temporary employees who have put in less than 240 days of temporary

service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

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[PART II—SEC. 3(ii)]

temporary employees as categorized would be given a chance for being considered for permanent

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear that

all the public sector banks may follow the provisions laid down in the approach paper. The approach paper

specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit of

Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in 12

consecutive months or less, a settlement could be avoided and however if the Management so desired they

could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned that

only those temporary employees who had put in temporary service of 90 days or more days after 1.1.82

would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by

way of a further concession entered into settlements. Even in respect of those who had put in less than 90

days and also the bank went a step further and said those persons who are working after 1975 were also

considered. Hence, there was a genuine effort on the part of the Respondent bank to provide as many as

possible jobs subject to the availability of the vacancies. However, para 6 (k) of the approach paper made

it clear that it is a one time, exercise in full and final, settlement of all the claims and disputes for the past

period, in respect of temporary workmen covered by the settlement. Another settlement was entered on

9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and separate panel

was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies arising

between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers, they can be

considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

absorption. These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees. The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

[भाग II—खण् ि 3(ii)]

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9049

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. The Management bank has not violated any of

the provisions of the terms of the said settlement. That the very preparation and maintenance of panel is in

compliance of the terms agreed under these settlements. These settlements were time bound and they

ceased to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management. Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

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[PART II—SEC. 3(ii)]

permanent through back door entry, which would not only be contrary to the settlements but also to

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge.

Thereafter the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the

Hon'ble Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore,

reference to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the

same has already been set aside. The observations made in the Judgements cannot be relied upon for any

purpose what so ever. The question of operation of Sec.25F would not come into play. Further the issue is

covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts.

Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in

evidence which has been exhibited as Ex.W1 to W3. Further, the Workman has filed photocopies of

documents in support of his claim which are discussed as under:-

Ex.W1 is the service certificate. Ex.W2 is the caste certificate. Ex.W3 is the transfer certificate.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has

exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the

Settlement dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the

conciliation proceedings dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the

Memorandum of Understanding dt. 27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel.

Ex.M9 is the Particulars of 1989 Non-Messengerial Panel. Ex.M10 is the Particulars of 1992 General

Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court of A.P. in Writ Appeal No.86/98

dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP No. 11886-11888 of 1998

dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of

various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Kandukur branch, in terminating the services of

Workman Sri Gowdaperi Lingaiah, a Messenger with effect from 6.4.86 is justified?

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9051

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid 5th

settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from 31.3.1997. The extract of the said

letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997

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[PART II—SEC. 3(ii)]

as per terms of settlements entered into by both parties. Further, the contents of the subsequent letter dated

27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank of India not

to make any temporary messengerial category appointment with effect from 31.3.1997 and it has also been

communicated to all concerned that the panels of temporary employees and daily wagers maintained by

Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been issued by

Respondent management that goes to reveal that the said office order has been issued to this effect that,

“Consequent on absorption of temporary employees in permanent cadre, it has been decided by the

competent authority that no one onwards, no further daily labour or temporary employees/appointments

should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the aforesaid orders

that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers

and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in

the 5th settlement which has been arrived at between the parties on dated 30.7.1996 with the consensus of

both the parties. Therefore, Workman can not challenge the terms and conditions contained in settlement

dated 30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India and State

Bank of India Staff Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said Agreement

dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before a

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9053

competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing the

date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

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[PART II—SEC. 3(ii)]

Workmen and the Workman as individual do not come into picture. Workman in the instant case has work

as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be utilized

for absorption of such Workman to permanent post in order of their seniority in the list. The Settlement

dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation under

Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position and it is

agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both the

panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of vacancy

of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management of State

Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on 6.4.86 without issuing any notice or paying any salary or compensation in lieu

thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context,

the Workman has examined himself as WW1 who has reiterated that Workman has been terminated from

service by Respondent on 6.4.86 without notice of salary or compensation in lieu thereof. Before

examining the claim of the Workman on merit it would be apposite to reproduce the provision contained

under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9055

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

conclusion that 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 period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

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[PART II—SEC. 3(ii)]

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., 31.3.1997.

In this context, WW1 in his cross examination has stated that,

“ My service was for total no. of 177 days spread over with gaps from time to time duringthe period from

1986…..

I was not sponsored by employment exchange. ….. It is not true to suggest that I never worked for 240 days

in a year continuously and I was casual worker I am not entitled for any relief.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously

in any 12 months of a calendar year just preceding from the date of his termination in the Respondent bank.

Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked

for 240 days continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997.

Thus, the claim of the Workman that he has been terminated by oral order without issuing notice or

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9057

payment in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not

tenable. However the documents filed by the Workman in support of his claim, number of days worked

with the Respondent goes to reveal that the Workman had worked intermittently as daily wager depending

upon availability of work in branch. Workman did not file any document of appointment letter or salary

slips in support of his claim for appointment as a non-messenger in the Respondent branch on

temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force

in the argument advanced by the Respondent that in the instant matter, Workman was not terminated from

service by order dated 6.4.86 rather he was disengaged in view of the non-availability of the work in the

branch. Further, there was direction issued by the Head Office of the Respondent authority not to engage

any daily wager Workman/ temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman

does not amount to termination. Moreover, the Workman failed to prove his claim that he was terminated

in contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to establish his plea by any oral

or documentary evidence that he had worked for 240 days continuously in a twelve months of calendar

year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of

1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office

not to make any temporary appointments in messengerial cadre from 31.3.1997, therefore it was directed to

issue suitable instructions not to make temporary appointments from 31.3.1997. There is no mention in

this order that the Workman herein has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is directed

to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these circulars do

not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank

by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman

that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the

service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes to reveal

that he had worked as a daily wager for which he has been paid wages according to number of working

days. As there was an order for prohibition for engaging temporary workmen, in the bank, therefore,

Workman could not be engaged by the Respondent for work from 31.3.1997 and there after. It is settled

law that the daily wagers are engaged by the employer depending upon the availability of work and as the

work was not available the Workman was not engaged further by the Respondent management. Therefore,

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[PART II—SEC. 3(ii)]

the Workman on the ground of number of days he had worked in the Respondent bank cannot claim any

right to reinstate him into the employment. As the Workman failed to prove the mandatory condition of

240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the disengagement

of Workman from work can not be termed in contravention of provision contained under Sec.25F and 25 B

of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and that

thereafter the said panels would lapse. It was also agreed that within the framework of the above

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further,

[भाग II—खण् ि 3(ii)]

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9059

Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by central office and thereby 403

messengerial vacancies were sanctioned to the circle of the Management bank and it was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time

non-messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties. It

is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot be

extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997 in

view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As the

lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court

have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion and

finding given at Point No. I regarding binding nature of Settlements and terms and conditions enumerated

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[PART II—SEC. 3(ii)]

therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the considered view that

life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and plea of Workman

that the panel shall continue even after 31.3.1997 till last man absorbed has no legal force and same

is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies

falls upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to the

permanent post were seniors in number of working days in panel list and Workman herein was junior to

those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence

that, “The Petitioner has not completed 240 days of service in a calendar year.” Although this witness was

cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the

claim of the Petitioner that he has been removed from service by the management illegally is untenable.

Further, witness MW1 in his chief statement has stated that, “The temporary messengers and Non-

messengers were engaged by the bank in leave vacancies and for administrative exigencies. The Petitioner

did not work continuously for 240 days in any year or over a period of 36 months.” This statement of

witness MW1 remained uncontroverted as the Petitioner did not cross examine the witness MW1 on this

point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil eligibility criteria

of working days as required for regularisation. Therefore, he was not given regularisation in the

employment of the Respondent. Therefore, in view of the statement of MW1, the claim of the Petitioner

that he was refused regularization by the Respondent management illegally, is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

[भाग II—खण् ि 3(ii)]

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9061

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of

panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of

Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant

therein Hon’ble Supreme Court have has laid down principle regarding regularization of the Workman on

permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization of the workmen

to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

labour practice by not filling up permanent posts even though such posts are available and by continuing

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman

failed to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies

were existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of

his seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

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[PART II—SEC. 3(ii)]

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also

not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross examination

has himself admitted this fact that, some of the temporary employees whose names were included in the

panel were given regular appointment in the bank in order of their seniority in the panel. The Workman

failed to show that there was any breach of terms of settlement has been committed by the Respondent in

appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

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Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities

must consider his case for regularization provided he is eligible and qualified according to the rules and

his service record is satisfactory and his appointment does not run counter to the reservation policy of

the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1

in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were

entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994

for those temporary employees who has worked on scale wages. Further, MW1 states that two different

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank. There are

four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and Visakhapatnam.

MW1 states that the temporary employees so empanelled were given permanent absorption depending

upon the vacancies so arise strictly in terms of the settlement. MW1 states that on 9.6.1995 conciliation

proceeding was held before the RLC(C), Hyderabad and in said proceedings it was decided that the panels

will be kept live up to 31.3.1997 and vacancies will be filled from both the lists concurrently. A copy of

the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another settlement was

entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies arising

up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel

so prepared were to be considered against vacancies arising from January 1995 to December 1996,

thereafter the said panels lapse. MW1 states that it was also agreed that all the non- messenger positions in

subordinate cadre including part time attendants specially provided as leave reserve will be filled before

31.3.1997 and as regards to non-messengerial positions it is agreed that all such posts sanctioned and fallen

vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus in both the cases

empanelled list were lapsed on 31.3.1997. Ex.M6 is the copy of the settlement dated 30.7.1996. Further,

witness states that on 27.2.1997 a memorandum of understanding was reached between the SBI and SBI

Staff Federation providing that both the panels above mentioned will lapse on 31.3.1997. Ex.M7 is the

copy of the memorandum of understanding and Ex.M8 is the copy of the statements giving the particulars

of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non- messenger panel, Ex.M10

is the copy of statement of 1992 panel. Further, witness states that petitioner was included in the 1989

panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly

in accordance with the settlements reached from time to time between SBI and SBI staff federation and as

per seniority, number of days of temporary service put in by them in the bank in the given period. Further,

MW1 states petitioner was not sponsored by any employment exchange he did not undergo the regular

process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary

employees were terminated from service by the bank. Further, MW1 states that the vacancies were filled

up on regular basis with the temporary employees from the panels and these panels were expired in terms

of the settlements so reached and there were no vacancies to absorb such employees. Thus, witness MW1

has proved the documents Ex.M1 to Ex.M12 and also contentions made in the counter. However, MW1

was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross examination so as

to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on 31.3.1997

and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels

were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized

after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the

aforesaid testimony of the MW1 in re-examination in the absence of cross examination remained

uncontraverted, the claim of the Workman that he was entitled for absorption in permanent post in the

branch of Respondent Management on the basis of panel list is found not established.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9065

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the

Workman is not entitled for any relief and claim statement of Workman sans merit and liable to be

dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri Gowdaperi Lingaiah, Ex. Messenger by way of oral orders w.e.f. 6.4.86 is justified.

Hence, the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman

sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 16th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Gowdaperi Lingaiah

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1:

Photocopy of service certificate

Ex.W2:

Photocopy of caste certificate

Ex.W3:

Photocopy of transfer certificate

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C)

dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 6 अगस् त, 2026

का.आ. 1734.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh;

ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्मकार श्री एस. राजा रतनर् ds chp vuqca/k

esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैिराबाि ds iapkV (32/2003)

प्रकाडित djrh gSA

[la- ,y-12025/01/2026-vkbZvkj(बी-I)-169]

सलोनी, उप डनिेिक

New Delhi, the 6th August, 2026

S.O. 1734.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (Ref. 32/2003) of the Central Government Industrial

Tribunal-cum-Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the

management of State Bank of India and their workman Sri S. Raja Ratnam.

[No. L-12025/01/2026- IR (B-I)-169]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 11th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 32/2003

[Old ID No. 249/2000 of Labour Court, Guntur]

Between:

Sri S. Raja Ratnam,

S/o Daniel,

R/o Rayapudi,

Thulluru Mandal,

Guntur District.

… Petitioner

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9067

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Regional Asst. General Manager,

State Bank of India,

Zonal Office, Vijayawada Zone,

Vijayawada.

4.

The Branch Manager,

State Bank of India,

Governorpet branch,

district.

…..Respondents

Appearances:

For the Petitioner :

Sri Macherla Rangaiah, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri S. Raja Ratnam who worked as Messenger (who will be referred to as the workman) has filed

this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of

India seeking for reinstatement into service as Messenger duly granting all the consequential benefits such

as continuity of service, back wages and all other attendant benefits etc., and such other reliefs as this court

may deem fit. Earlier Petitioner has filed this dispute before the Labour Court, Guntur for adjudication and

later the same has been transferred to this Tribunal bearing ID No. 249/2000, as per orders of Central

Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in this

Tribunal as LC No. 32/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along

with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference

was answered in favour of the Respondent and against the Workman. That said common award dated

17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along with

batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court vide its’

judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award dated

9068

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[PART II—SEC. 3(ii)]

17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government Industrial

Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India was

directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals

were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is extracted

as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9069

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Messenger from 1988 to

1997, and has rendered unblemished service spreading over a period of about 9 years. The Respondent has

terminated services of Workman by oral orders with effect from 1.1.1997. Further, it is submitted that the

management of Respondent bank decided to give a chance to temporarily employed personnel “found

suitable for permanent appointment” by wait- listing them by offering permanent appointment or

waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months after

1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36 months

after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee. The

Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of their

respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of the

settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon the

said agreement and the draft, a notification was issued in the newspapers. The last date for responding to

the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held. A

selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was

to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said

letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement

dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was to be

given, “to all eligible temporary employees for permanent appointments. The appointments were against

the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the enormity of

the problem an extension of the currency of the panel, eligible temporary employees who have been

empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter, “will

be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th

settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex

M5. That due to all these settlements which were extended by subsequent settlements thereby created

reasonable expectations in the list of the selected candidates arose with that it’s a question of time their

appointments or services would be regularized in the services of the bank. The Workman was working with

the bank on temporary basis was under the bonafide hope that sooner his services will be regularized with

the bank. He is thereby closed all his options elsewhere. It is needless to point out that employing person to

9070

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

whom hope of employment in substantial terms was made is a facet of Article 21 of the Constitution

of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P .. by

order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In

view of the directions given by the High Court all candidates whose names appeared in the select panels

prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid upto

December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made alive

upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank

has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies

of circumstances and on account of the urgent need in its banks, it employed temporary employees in

subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the nature of

temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken by the

bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair labour

practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on the

other to ensure that benefits that a model employer will extend under various statutes to its employees is

not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9071

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

constituted in this regard. The Government of India guidelines made it clear that all the public sector banks

may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned. The approach paper also specify at para 6(c) that the

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were

also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect- that the panel of temporary employees and the panel of daily wage

employees will be operated to a particular period. Therefore, their cases will not be considered. The

Management herein relying upon this settlement in their impugned action. It is submitted that even the

settlement dated 9.1.1991 will not empower the management to terminate the services of the temporary

employees who are working in the bank services like the Workman herein as it does not specify the

termination of the employees. In fact there are so many vacancies wherein the Management has engaged

several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have

continued the similarly situated candidates like the Workman herein in the services of the bank and

9072

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

consider their cases for absorption in view of the circulars issued by Central Government as well as the

directions of this Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued

by the Central Government, the Management should not have relied upon the settlement dated 9.1.1991.

Hence, the impugned action of the Management is illegal, unjust, violative of fundamental rights such as

Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties and

sought for absorption. Such employees in the bank services on permanent basis before the date fixed for

carrying out the terms of settlement, the Court held that the members of the union had been empanelled in

the list, they were not regularized and the time was going to run out to the near future and the Respondent

bank and its officers cannot escape from the liability of enforcing the settlement which has been reached

and therefore directed that the bank and the officers shall implement the settlement dated 17.11.87 as

amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the candidates

with effect from 1.1.1997 which is arbitrary, discriminatory, contrary to their own guidelines and violative

of the constitutional provisions which are guaranteed in Chapter-III of the Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal

and unfair labour practice which cannot be allowed to be perpetuated. That the discontinuance of the

Workman after 31.3.97 who had served in the bank in any capacity amounts to retrenchment. It could not

have been done without any notice and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the

said action is violative of principles of natural justice guaranteed under Chapter III of the Constitution of

India. This amounts to retrenchment without one month's notice and taken in view of such notice. Thus, the

main proceedings issued by the Respondent is without jurisdiction and is arbitrary, illegal and therefore

liable to be quashed. That the alleged Memorandum of Understanding dated 27.2.97, Ex.M5 does not own

any legal entity, as the said Memorandum of Understanding is not published anywhere to brought to the

notice of the Workman whose rights are being affected. It is submitted that Management did not adhere to

the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled

candidates like the Workman here. It is pertinent to mention here that the Respondent Management sent

letters to the all similarly situated candidates like the Workman in the month of June, 1997, subsequent to

the passing of impugned termination orders. After knowing the facts that the candidates are litigating, the

Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates

like the Workman even in temporary vacancies till they are absorbed permanently in regular vacancies.

Hence, the action of the Respondent Management terminating the services of the Workman by oral order

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9073

dated 31.3.97 is unjust, illegal, violative of principles of natural justice and hence, the Management be

directed to reinstate and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate

staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions

imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to

engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc., depending on the

availability of work on purely temporary basis for the smooth and uninterrupted functioning of the

branches. It is submitted that the All India State Bank of India Staff Federation which represents majority

of the employees in the State Bank of India comprising about 98% of the work force as its' members

espoused the cause of temporary employees who have put in less than 240 days of temporary service in 12

calendar months in the bank and who were ineligible for any protection under Industrial Disputes Act,

1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

temporary employees as categorized would be given a chance for being considered for permanent

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear that

all the public sector banks may follow the provisions laid down in the approach paper. The approach paper

specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit of

Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in 12

consecutive months or less, a settlement could be avoided and however if the Management so desired they

could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned that

only those temporary employees who had put in temporary service of 90 days or more days after 1.1.82

would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by

way of a further concession entered into settlements. Even in respect of those who had put in less than 90

days and also the bank went a step further and said those persons who are working after 1975 were also

considered. Hence, there was a genuine effort on the part of the Respondent bank to provide as many as

possible jobs subject to the availability of the vacancies. However, para 6 (k) of the approach paper made it

clear that it is a one time, exercise in full and final, settlement of all the claims and disputes for the past

period, in respect of temporary workmen covered by the settlement. Another settlement was entered on

9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and separate panel

9074

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[PART II—SEC. 3(ii)]

was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies arising

between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers, they can be

considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

absorption. These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees. The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. The Management bank has not violated any of the

provisions of the terms of the said settlement. That the very preparation and maintenance of panel is in

compliance of the terms agreed under these settlements. These settlements were time bound and they

ceased to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9075

for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management. Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

permanent through back door entry, which would not only be contrary to the settlements but also to

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge. Thereafter

the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the Hon'ble

Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore, reference

to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the same has

already been set aside. The observations made in the Judgements cannot be relied upon for any purpose

what so ever. The question of operation of Sec.25F would not come into play. Further the issue is covered

by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts. Hence, the

reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in

evidence which has been exhibited as Ex.W1 to W12. Further, the Workman has filed photocopies of

documents in support of his claim which are discussed as under:-

Ex.W1 to Ex.W3 are the service certificates. Ex.W4 is the caste certificate. Ex.W5 is the study certificate.

Ex.W6 is the transfer certificate. Ex.W7 is the employment card. Ex.W8 is the interview call letter. Ex.W9

is the stay order. Ex.W10 is the 1992 panel list. Ex.W11 is the Petitioner’s panel list. Ex.W12 is the legal

notice to Respondent.

21.

On the other hand, Respondent has examined witness MW1 Sri K. Chandra Sekhar Goud and this

witness has exhibited 13 documents, marked as Ex.M1 to M13. The details of these documents are as

follows:-

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[PART II—SEC. 3(ii)]

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the

Settlement dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the

conciliation proceedings dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the

Memorandum of Understanding dt. 27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel.

Ex.M9 is the Particulars of 1989 Non-Messengerial Panel. Ex.M10 is the Particulars of 1992 General

Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court of A.P. in Writ Appeal No.86/98

dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP No. 11886-11888 of 1998

dt.10.8.1998. Ex.M13 is the employment notification.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of

various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Governorpet branch in terminating the services

of Workman Sri S. Raja Ratnam, a Messenger with effect from 1.1.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9077

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid 5th

settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from 1.1.1997. The extract of the said

letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

1.1.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from 1.1.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997

as per terms of settlements entered into by both parties. Further, the contents of the subsequent letter dated

27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank of India not

to make any temporary messengerial category appointment with effect from 1.1.1997 and it has also been

communicated to all concerned that the panels of temporary employees and daily wagers maintained by

Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been issued by

Respondent management that goes to reveal that the said office order has been issued to this effect that,

“Consequent on absorption of temporary employees in permanent cadre, it has been decided by the

competent authority that no one onwards, no further daily labour or temporary employees/appointments

should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the aforesaid orders

that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.1.1997 because of the lapsed of panel of temporary workers

and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the

5th settlement which has been arrived at between the parties on dated 30.7.1996 with the consensus of both

the parties. Therefore, Workman can not challenge the terms and conditions contained in settlement dated

30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India and State Bank of

India Staff Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated

30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before a

competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing the

date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9079

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

Workmen and the Workman as individual do not come into picture. Workman in the instant case has work

as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be utilized

for absorption of such Workman to permanent post in order of their seniority in the list. The Settlement

dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation under

Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position and it is

agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both the

panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of vacancy

of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management of State

Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on 1.1.1997 without issuing any notice or paying any salary or compensation in

lieu thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context,

the Workman has examined himself as WW1 who has reiterated that Workman has been terminated from

service by Respondent on 1.1.1997 without notice of salary or compensation in lieu thereof. Before

9080

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

examining the claim of the Workman on merit it would be apposite to reproduce the provision contained

under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9081

conclusion that 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 period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

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[PART II—SEC. 3(ii)]

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., 1.1.1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange and did not undergo the regular process of selection

before my engagement as temporary messenger in the branch..”

“It is true that I did not work for 240 days in any year in my entire service in the bank in any branch.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously

in any 12 months of a calendar year just preceding from the date of his termination in the Respondent bank.

Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked

for 240 days continuously in calendar year just preceding from the date of his termination i.e., 1.1.1997.

Thus, the claim of the Workman that he has been terminated by oral order without issuing notice or

payment in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not

tenable. However the documents filed by the Workman in support of his claim, number of days worked

with the Respondent goes to reveal that the Workman had worked intermittently as daily wager depending

upon availability of work in branch. Workman did not file any document of appointment letter or salary

slips in support of his claim for appointment as a non-messenger in the Respondent branch on temporary

basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force

in the argument advanced by the Respondent that in the instant matter, Workman was not terminated from

service by order dated 1.1.1997 rather he was disengaged in view of the non-availability of the work in the

branch. Further, there was direction issued by the Head Office of the Respondent authority not to engage

any daily wager Workman/ temporary Worker w.e.f. 1.1.1997. Thus, such disengagement of Workman

does not amount to termination. Moreover, the Workman failed to prove his claim that he was terminated

in contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to establish his plea by any oral

or documentary evidence that he had worked for 240 days continuously in a twelve months of calendar

year just preceding from date of termination i.e., 1.1.1997.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9083

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of

1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office

not to make any temporary appointments in messengerial cadre from 1.1.1997, therefore it was directed to

issue suitable instructions not to make temporary appointments from 1.1.1997. There is no mention in this

order that the Workman herein has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is directed

to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these circulars do

not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank

by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman

that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the

service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes to reveal

that he had worked as a daily wager for which he has been paid wages according to number of working

days. As there was an order for prohibition for engaging temporary workmen, in the bank, therefore,

Workman could not be engaged by the Respondent for work from 1.1.1997 and there after. It is settled law

that the daily wagers are engaged by the employer depending upon the availability of work and as the work

was not available the Workman was not engaged further by the Respondent management. Therefore, the

Workman on the ground of number of days he had worked in the Respondent bank cannot claim any right

to reinstate him into the employment. As the Workman failed to prove the mandatory condition of 240

days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the disengagement of

Workman from work can not be termed in contravention of provision contained under Sec.25F and 25 B of

the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

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[PART II—SEC. 3(ii)]

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and that

thereafter the said panels would lapse. It was also agreed that within the framework of the above

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further, Respondent

contended that on 27.2.1997 a memorandum of understanding was also signed between the Federation’s

affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial

vacancies were sanctioned to the circle of the Management bank and it was agreed that these vacancies

may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties. It

is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot be

extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997 in

view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As the

lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have

held:-

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9085

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion and

finding given at Point No. I regarding binding nature of Settlements and terms and conditions enumerated

therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the considered view that

life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and plea of Workman

that the panel shall continue even after 31.3.1997 till last man absorbed has no legal force and same is

untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies falls

upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to the

permanent post were seniors in number of working days in panel list and Workman herein was junior to

those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

In this context the Workman witness WW1 was cross examined by the Respondent counsel and in

the cross examination the witness WW1 states:-

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[PART II—SEC. 3(ii)]

“ I used to work depending upon availability of work in the branch. I am not aware of the settlements

between the federation and the Management. Further witness states, “I am not having any evidence to

show that any of my juniors are continuing in the service.”

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in

terms of various settlements entered into between Staff Federation of State Bank of India and State Bank of

India and it was prepared on the basis of number of days of work put in by the temporary employees.

Further, the Workman himself admitted that some of the temporary employees whose names were included

in the panel were given regular appointment in the bank in order of their seniority in the panel and he is not

having any document to show that any person who worked for less number of days than the Workman was

given appointment in the bank. Therefore, the allegation of the Workman that the regular appointment has

been made by the bank from the panel list in breach of the terms of the settlement and violation of seniority

of panel list is not proved by this evidence of WW1. Thus, there is no evidence on record that bank has

given the appointment to the temporary employees as well as daily wagers from the panel list 1989 and

1992 in breach of seniority of the temporary employees in the list. There is no evidence of jumbling in the

panel list to make appointment of any permanent Workman in breach of the seniority. Therefore, I am

constrained to hold that the Respondent Management has appointed the workmen from panel list in order

of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of

panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of

Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant

therein Hon’ble Supreme Court have has laid down principle regarding regularization of the Workman on

permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization of the workmen

to permanent post is as under:-

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9087

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

labour practice by not filling up permanent posts even though such posts are available and by continuing

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed

to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies were

existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of his

seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also not

acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross examination

has himself admitted this fact that, some of the temporary employees whose names were included in the

panel were given regular appointment in the bank in order of their seniority in the panel. The Workman

failed to show that there was any breach of terms of settlement has been committed by the Respondent in

appointment to permanent post from aforesaid panel list.

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[PART II—SEC. 3(ii)]

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9089

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities

must consider his case for regularization provided he is eligible and qualified according to the rules and

his service record is satisfactory and his appointment does not run counter to the reservation policy of the

state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1

in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were

entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994

for those temporary employees who has worked on scale wages. Further, MW1 states that two different

panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank. There are

four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and Visakhapatnam.

MW1 states that the temporary employees so empanelled were given permanent absorption depending

upon the vacancies so arise strictly in terms of the settlement. MW1 states that on 9.6.1995 conciliation

proceeding was held before the RLC(C), Hyderabad and in said proceedings it was decided that the panels

will be kept live up to 31.3.1997 and vacancies will be filled from both the lists concurrently. A copy of the

said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another settlement was

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies arising

up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel

so prepared were to be considered against vacancies arising from January 1995 to December 1996,

thereafter the said panels lapse. MW1 states that it was also agreed that all the non- messenger positions in

subordinate cadre including part time attendants specially provided as leave reserve will be filled before

31.3.1997 and as regards to non-messengerial positions it is agreed that all such posts sanctioned and fallen

vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus in both the cases

empanelled list were lapsed on 1.1.1997. Ex.M6 is the copy of the settlement dated 30.7.1996. Further,

witness states that on 27.2.1997 a memorandum of understanding was reached between the SBI and SBI

Staff Federation providing that both the panels above mentioned will lapse on 31.3.1997. Ex.M7 is the

copy of the memorandum of understanding and Ex.M8 is the copy of the statements giving the particulars

of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non- messenger panel, Ex.M10

is the copy of statement of 1992 panel. Further, witness states that petitioner was included in the 1989

panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per

seniority, number of days of temporary service put in by them in the bank in the given period. Further,

MW1 states petitioner was not sponsored by any employment exchange he did not undergo the regular

process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary

employees were terminated from service by the bank. Further, MW1 states that the vacancies were filled

up on regular basis with the temporary employees from the panels and these panels were expired in terms

of the settlements so reached and there were no vacancies to absorb such employees. Thus, witness MW1

has proved the documents Ex.M1 to Ex.M12 and also contentions made in the counter. However, MW1

was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross examination so as

to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on 31.3.1997

and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels

were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized

after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the

aforesaid testimony of the MW1 in re-examination in the absence of cross examination remained

uncontraverted, the claim of the Workman that he was entitled for absorption in permanent post in the

branch of Respondent Management on the basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman

is not entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9091

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri S. Raja Ratnam, Ex. Messenger by way of oral orders w.e.f. 1.1.1997 is justified. Hence,

the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit,

hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 11th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri S. Raja Ratnam

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1 to

Ex.W3:

Photocopies of service certificates

Ex.W4:

Photocopy of caste certificate

Ex.W5:

Photocopy of study certificate

Ex.W6:

Photocopy of transfer certificate

Ex.W7:

Photocopy of employment card

Ex.W8:

Photocopy of interview call letter

Ex.W9:

Photocopy of stay order

Ex.W10:

Photocopy of 1992 panel list

Ex.W11:

Photocopy of Petitioner’s panel list

Ex.W12:

Photocopy of legal notice to Respondent.

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C)

dt.9.6.1995

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

Ex.M13:

Photocopy of employment notification.

नई दिल्ली, 6 अगस् त, 2026

का.आ. 1735.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh;

ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्मकार श्री के. डवजय बाबू ds chp vuqca/k esa

fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैिराबाि ds iapkV (33/2003)

प्रकाडित djrh gSA

[la- ,y-12025/01/2026-vkbZvkj(बी-I)-170]

सलोनी, उप डनिेिक

New Delhi, the 6th August, 2026

S.O. 1735.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (Ref. 33/2003) of the Central Government Industrial

Tribunal-cum-Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the

management of State Bank of India and their workman Sri K. Vijaya Babu.

[No. L-12025/01/2026- IR (B-I)-170]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: -

Sri Irfan Qamar

Presiding Officer

Dated the 11th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 33/2003

[Old ID No. 241/2000 of Labour Court, Guntur]

Between:

Sri K. Vijaya Babu,

S/o O. Joseph,

R/o D.No.12-3-9/2,

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9093

Prakash Nagar,

Narasaraopet Town,

Guntur district.

…. Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Regional Asst. General Manager,

State Bank of India,

Zonal Office, Vijayawada Zone,

Vijayawada.

4.

The Branch Manager,

State Bank of India,

Narasaraopet branch(ADB),

Guntur district.

…..Respondents

Appearances:

For the Petitioner :

Sri S. Adinarayana, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri K. Vijaya Babu who worked as Driver cum Messenger (who will be referred to as the

workman) has filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the

Respondents State Bank of India seeking for reinstatement into service as Driver cum Messenger duly

granting all the consequential benefits such as continuity of service, back wages and all other attendant

benefits etc., and such other reliefs as this court may deem fit. Earlier Petitioner has filed this dispute

before the Labour Court, Guntur for adjudication and later the same has been transferred to this Tribunal

bearing ID No. 241/2000, as per orders of Central Government vide Lr. No. H- 11026/1/2001-IR(C.II)

dated 18.10.2001 and registered, numbered in this Tribunal as LC No. 33/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute

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[PART II—SEC. 3(ii)]

along with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the

reference was answered in favour of the Respondent and against the Workman. That said common award

dated 17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along

with batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court

vide its’ judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award

dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government

Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India

was directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ

Appeals were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is

extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9095

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Messenger from 5.5.1986 to

20.3.1997, and has rendered unblemished service spreading over a period of about 11 years. The

Respondent has terminated services of Workman by oral orders with effect from March, 1997. Further, it

is submitted that the management of Respondent bank decided to give a chance to temporarily employed

personnel “found suitable for permanent appointment” by wait-listing them by offering permanent

appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months

after 1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36

months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee.

The Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of

their respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of

the settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon

the said agreement and the draft, a notification was issued in the newspapers. The last date for responding

to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held.

A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel

was to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the

said letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second

agreement dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was

to be given, “to all eligible temporary employees for permanent appointments. The appointments were

against the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the

enormity of the problem an extension of the currency of the panel, eligible temporary employees who have

been empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter,

“will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the

1st settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88

is the 3rd settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated

30.7.96 is 5th settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95

marked as Ex M5. That due to all these settlements which were extended by subsequent settlements

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

thereby created reasonable expectations in the list of the selected candidates arose with that it’s a

question of time their appointments or services would be regularized in the services of the bank. The

Workman was working with the bank on temporary basis was under the bonafide hope that sooner his

services will be regularized with the bank. He is thereby closed all his options elsewhere. It is needless

to point out that employing person to whom hope of employment in substantial terms was made is a facet

of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P ..

by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble

High Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement.

In view of the directions given by the High Court all candidates whose names appeared in the select

panels prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid

upto December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made

alive upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the

bank has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to

exigencies of circumstances and on account of the urgent need in its banks, it employed temporary

employees in subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the

nature of temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken

by the bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair

labour practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on

the other to ensure that benefits that a model employer will extend under various statutes to its employees

is not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9097

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

constituted in this regard. The Government of India guidelines made it clear that all the public sector

banks may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned. The approach paper also specify at para 6(c) that the

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were also

considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect- that the panel of temporary employees and the panel of daily wage

employees will be operated to a particular period. Therefore, their cases will not be considered. The

Management herein relying upon this settlement in their impugned action. It is submitted that even the

settlement dated 9.1.1991 will not empower the management to terminate the services of the temporary

employees who are working in the bank services like the Workman herein as it does not specify the

termination of the employees. In fact there are so many vacancies wherein the Management has engaged

several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

9098

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

High Court without considering the cases of the similarly situated candidates like the Workman herein. It

is submitted inspite of engaging fresh candidates as is now being done by the Management they would

have continued the similarly situated candidates like the Workman herein in the services of the bank and

consider their cases for absorption in view of the circulars issued by Central Government as well as the

directions of this Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued

by the Central Government, the Management should not have relied upon the settlement dated 9.1.1991.

Hence, the impugned action of the Management is illegal, unjust, violative of fundamental rights such as

Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties

and sought for absorption. Such employees in the bank services on permanent basis before the date fixed

for carrying out the terms of settlement, the Court held that the members of the union had been empanelled

in the list, they were not regularized and the time was going to run out to the near future and the

Respondent bank and its officers cannot escape from the liability of enforcing the settlement which has

been reached and therefore directed that the bank and the officers shall implement the settlement dated

17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the

candidates with effect from March, 1997 which is arbitrary, discriminatory, contrary to their own

guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal

and unfair labour practice which cannot be allowed to be perpetuated. That the discontinuance of the

Workman after 31.3.97 who had served in the bank in any capacity amounts to retrenchment. It could not

have been done without any notice and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the

said action is violative of principles of natural justice guaranteed under Chapter III of the Constitution of

India. This amounts to retrenchment without one month's notice and taken in view of such notice. Thus,

the main proceedings issued by the Respondent is without jurisdiction and is arbitrary, illegal and

therefore liable to be quashed. That the alleged Memorandum of Understanding dated 27.2.97, Ex.M5

does not own any legal entity, as the said Memorandum of Understanding is not published anywhere to

brought to the notice of the Workman whose rights are being affected. It is submitted that Management did

not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the

year 1995. The same was not followed in the year 1997 despite there being vacancies. The management

has followed the procedure of calling candidates through Employment exchange instead of giving chance

to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June,

1997, subsequent to the passing of impugned termination orders. After knowing the facts that the

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9099

candidates are litigating, the Management refused to engage these candidates. It is once again reiterated

that the panels are meant for absorption but not for termination. It was the duty of the Management to

engage the empanelled candidates like the Workman even in temporary vacancies till they are absorbed

permanently in regular vacancies. Hence, the action of the Respondent Management terminating the

services of the Workman by oral order dated 31.3.97 is unjust, illegal, violative of principles of natural

justice and hence, the Management be directed to reinstate and absorb the Workman and to grant all

incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate

staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions

imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to

engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc., depending on the

availability of work on purely temporary basis for the smooth and uninterrupted functioning of the

branches. It is submitted that the All India State Bank of India Staff Federation which represents majority

of the employees in the State Bank of India comprising about 98% of the work force as its' members

espoused the cause of temporary employees who have put in less than 240 days of temporary service in 12

calendar months in the bank and who were ineligible for any protection under Industrial Disputes Act,

1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

temporary employees as categorized would be given a chance for being considered for permanent

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear

that all the public sector banks may follow the provisions laid down in the approach paper. The approach

paper specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit

of Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in

12 consecutive months or less, a settlement could be avoided and however if the Management so desired

they could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned

that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines

envisaged for a settlement in respect of employees who had put in temporary service of 90 days or more

days, the bank by way of a further concession entered into settlements. Even in respect of those who had

put in less than 90 days and also the bank went a step further and said those persons who are working after

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[PART II—SEC. 3(ii)]

1975 were also considered. Hence, there was a genuine effort on the part of the Respondent bank to

provide as many as possible jobs subject to the availability of the vacancies. However, para 6 (k) of the

approach paper made it clear that it is a one time, exercise in full and final, settlement of all the claims and

disputes for the past period, in respect of temporary workmen covered by the settlement. Another

settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was extended

upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed

that while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of

casual/daily wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

absorption. These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees. The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. The Management bank has not violated any of

the provisions of the terms of the said settlement. That the very preparation and maintenance of panel is in

compliance of the terms agreed under these settlements. These settlements were time bound and they

ceased to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

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9101

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management. Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

permanent through back door entry, which would not only be contrary to the settlements but also to

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge.

Thereafter the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the

Hon'ble Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore,

reference to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the

same has already been set aside. The observations made in the Judgements cannot be relied upon for any

purpose what so ever. The question of operation of Sec.25F would not come into play. Further the issue is

covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts.

Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in

evidence which has been exhibited as Ex.W1 to W16. Further, the Workman has filed photocopies of

documents in support of his claim which are discussed as under:-

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[PART II—SEC. 3(ii)]

Ex.W1 to Ex.W7 are the service certificates. Ex.W8 is the marks memo. Ex.W9 is the transfer certificate.

Ex.W10 is the caste certificate. Ex.W11 is the driving certificate. Ex.W12 is the employment card.

Ex.W13 is the interview call letter. Ex.W14 is the stay order. Ex.W15 is the 1992 panel list. Ex.W16 is

the legal notice.

21.

On the other hand, Respondent has examined witness MW1 Sri K. Chandra Sekhar Goud and this

witness has exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as

follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the

Settlement dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the

conciliation proceedings dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the

Memorandum of Understanding dt. 27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel.

Ex.M9 is the Particulars of 1989 Non-Messengerial Panel. Ex.M10 is the Particulars of 1992 General

Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court of A.P. in Writ Appeal No.86/98

dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP No. 11886-11888 of 1998

dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list

of various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Narasaraopet ADB branch in terminating the

services of Workman Sri K. Vijaya Babu, a Messenger with effect from March, 1997 is

justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9103

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid

5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from March, 1997. The extract of the said

letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

March, 1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from March, 1997 due to reason of lapse of both panels i.e., 1989 & 1992 on

31.3.1997 as per terms of settlements entered into by both parties. Further, the contents of the subsequent

letter dated 27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank

of India not to make any temporary messengerial category appointment with effect from March, 1997 and

it has also been communicated to all concerned that the panels of temporary employees and daily wagers

maintained by Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been

issued by Respondent management that goes to reveal that the said office order has been issued to this

effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been decided by

the competent authority that no one onwards, no further daily labour or temporary employees/appointments

should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the aforesaid orders

that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from March, 1997 because of the lapsed of panel of temporary

workers and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is

contained in the 5th settlement which has been arrived at between the parties on dated 30.7.1996 with the

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[PART II—SEC. 3(ii)]

consensus of both the parties. Therefore, Workman can not challenge the terms and conditions contained

in settlement dated 30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India

and State Bank of India Staff Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said

Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before

a competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing

the date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

[भाग II—खण् ि 3(ii)]

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9105

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

Workmen and the Workman as individual do not come into picture. Workman in the instant case has

work as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be

utilized for absorption of such Workman to permanent post in order of their seniority in the list. The

Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation

under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel

list is allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both

the panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of

vacancy of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management

of State Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

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[PART II—SEC. 3(ii)]

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on March, 1997 without issuing any notice or paying any salary or compensation

in lieu thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this

context, the Workman has examined himself as WW1 who has reiterated that Workman has been

terminated from service by Respondent on March, 1997 without notice of salary or compensation in lieu

thereof. Before examining the claim of the Workman on merit it would be apposite to reproduce the

provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9107

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

conclusion that 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 period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

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[PART II—SEC. 3(ii)]

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., March, 1997.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange and did not undergo the regular process of selection

before my engagement as temporary messenger in the branch..”

“I did not work continuously for 240 days in any branch in any year.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously

in any 12 months of a calendar year just preceding from the date of his termination in the Respondent

bank. Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had

worked for 240 days continuously in calendar year just preceding from the date of his termination i.e.,

March, 1997. Thus, the claim of the Workman that he has been terminated by oral order without issuing

notice or payment in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act,

1947 is not tenable. However the documents filed by the Workman in support of his claim, number of

days worked with the Respondent goes to reveal that the Workman had worked intermittently as daily

wager depending upon availability of work in branch. Workman did not file any document of appointment

letter or salary slips in support of his claim for appointment as a non-messenger in the Respondent branch

on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9109

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the

force in the argument advanced by the Respondent that in the instant matter, Workman was not terminated

from service by order dated March, 1997 rather he was disengaged in view of the non-availability of the

work in the branch. Further, there was direction issued by the Head Office of the Respondent authority

not to engage any daily wager Workman/ temporary Worker w.e.f. March, 1997. Thus, such

disengagement of Workman does not amount to termination. Moreover, the Workman failed to prove his

claim that he was terminated in contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to

establish his plea by any oral or documentary evidence that he had worked for 240 days continuously in a

twelve months of calendar year just preceding from date of termination i.e., March, 1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees

of 1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central

office not to make any temporary appointments in messengerial cadre from March, 1997, therefore it was

directed to issue suitable instructions not to make temporary appointments from March, 1997. There is no

mention in this order that the Workman herein has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is

directed to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these

circulars do not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent

bank by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the

Workman that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997

from the service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes

to reveal that he had worked as a daily wager for which he has been paid wages according to number of

working days. As there was an order for prohibition for engaging temporary workmen, in the bank,

therefore, Workman could not be engaged by the Respondent for work from March, 1997 and there after.

It is settled law that the daily wagers are engaged by the employer depending upon the availability of work

and as the work was not available the Workman was not engaged further by the Respondent management.

Therefore, the Workman on the ground of number of days he had worked in the Respondent bank cannot

claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under

Sec.25F and 25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

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[PART II—SEC. 3(ii)]

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and

that thereafter the said panels would lapse. It was also agreed that within the framework of the above

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further,

Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by central office and thereby 403

messengerial vacancies were sanctioned to the circle of the Management bank and it was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time

non-messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9111

It is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot

be extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997

in view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As

the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have

held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion

and finding given at Point No. I regarding binding nature of Settlements and terms and conditions

enumerated therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the

considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and

plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no legal

force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies

falls upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

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[PART II—SEC. 3(ii)]

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to

the permanent post were seniors in number of working days in panel list and Workman herein was junior

to those workmen. Therefore, Workman could not be given absorption to permanent post being junior to

other workmen in the panel list.

39.

In this context the Workman witness WW1 was cross examined by the Respondent counsel and in

the cross examination the witness WW1 states:-

“I filed the panel list.” Further, the witness states, “Prior to my oral appointment there was no

notification. I used to work depending upon availability of work in the branch.” …. Further witness

states, “I am not having any evidence to show that any of my juniors are continuing in the service.”

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in

terms of various settlements entered into between Staff Federation of State Bank of India and State Bank

of India and it was prepared on the basis of number of days of work put in by the temporary employees.

Further, the Workman himself admitted that some of the temporary employees whose names were

included in the panel were given regular appointment in the bank in order of their seniority in the panel and

he is not having any document to show that any person who worked for less number of days than the

Workman was given appointment in the bank. Therefore, the allegation of the Workman that the regular

appointment has been made by the bank from the panel list in breach of the terms of the settlement and

violation of seniority of panel list is not proved by this evidence of WW1. Thus, there is no evidence on

record that bank has given the appointment to the temporary employees as well as daily wagers from the

panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no

evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the

seniority. Therefore, I am constrained to hold that the Respondent Management has appointed the

workmen from panel list in order of seniority and there is no jumbling of workmen in the panel list before

it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse

of panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim

of Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9113

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is

relevant therein Hon’ble Supreme Court have has laid down principle regarding regularization of the

Workman on permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization

of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

labour practice by not filling up permanent posts even though such posts are available and by continuing

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman

failed to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies

were existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of

his seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also

not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

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[PART II—SEC. 3(ii)]

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross

examination has himself admitted this fact that, some of the temporary employees whose names were

included in the panel were given regular appointment in the bank in order of their seniority in the panel.

The Workman failed to show that there was any breach of terms of settlement has been committed by the

Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9115

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the

authorities must consider his case for regularization provided he is eligible and qualified according to the

rules and his service record is satisfactory and his appointment does not run counter to the reservation

policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and

MW1 in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991

were entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to

1994 for those temporary employees who has worked on scale wages. Further, MW1 states that two

different panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank.

There are four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and

Visakhapatnam. MW1 states that the temporary employees so empanelled were given permanent

absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1 states that on

9116

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it was

decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on

30.7.1996 another settlement was entered between the SBI and All India SBI Staff Federation providing for

filling up of the vacancies arising up to December 1994 in respect of subordinate cadre and daily wage

/casual wage employees out of panel so prepared were to be considered against vacancies arising from

January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also agreed that

all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that

all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus in both the cases empanelled list were lapsed on March, 1997. Ex.M6 is the copy

of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above

mentioned will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is

the copy of the statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the

statement of 1989 non- messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness

states that petitioner was included in the 1989 panel. As the existing vacancies at that time were exhausted

and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time

between SBI and SBI staff federation and as per seniority, number of days of temporary service put in by

them in the bank in the given period. Further, MW1 states petitioner was not sponsored by any

employment exchange he did not undergo the regular process of selection required for appointment as a

regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the

bank. Further, MW1 states that the vacancies were filled up on regular basis with the temporary

employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents Ex.M1 to

Ex.M12 and also contentions made in the counter. However, MW1 was cross examined by the Petitioner

Counsel. But nothing has been elicited in his cross examination so as to discredit the testimony of the

witness MW1 as regards the date of lapse of both the panels on 31.3.1997 and reasons assigned for non-

absorption of the Petitioner from the panel list to the permanent post. Moreover the witness MW1 was re-

examined by the Respondent and the witness MW1 states that panels were expired in terms of the

settlement send absorptions to the extent of the available vacancies were made. There was no termination

of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank

as on the date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in

re-examination in the absence of cross examination remained uncontraverted, the claim of the Workman

that he was entitled for absorption in permanent post in the branch of Respondent Management on the basis

of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the

Workman is not entitled for any relief and claim statement of Workman sans merit and liable to be

dismissed.

This Point is answered accordingly.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9117

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri K. Vijaya Babu, Ex. Messenger by way of oral orders w.e.f. March, 1997 is justified.

Hence, the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman

sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 11th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Vijaya Babu

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1 to

Ex.W7:

Photocopies of service certificates

Ex.W8:

Photocopy of marks memo

Ex.W9:

Photocopy of transfer certificate

Ex.W10:

Photocopy of caste certificate

Ex.W11:

Photocopy of driving certificate

Ex.W12:

Photocopy of employment card

Ex.W13:

Photocopy of interview call letter

Ex.W14:

Photocopy of stay order

Ex.W15:

Photocopy of 1992 panel list

Ex.W16:

Photocopy of legal notice

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C)

dt.9.6.1995

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 6 अगस् त, 2026

का.आ. 1736.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh;

ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्मकार श्री ज्योडत रोडसयह ds chp vuqca/k esa

fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैिराबाि ds iapkV (34/2003)

प्रकाडित djrh gSA

[la- ,y-12025/01/2026-vkbZvkj(बी-I)-171]

सलोनी, उप डनिेिक

New Delhi, the 6th August, 2026

S.O. 1736.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (Ref. 34/2003) of the Central Government Industrial

Tribunal-cum-Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the

management of State Bank of India and their workman Sri Jyothi Rosiah.

[No. L-12025/01/2026- IR (B-I)-171]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 11th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 34/2003

[Old ID No. 283/99 of Labour Court, Guntur]

Between:

Sri Jyothi Rosiah,

S/o Papaiah,

Velamuripadu post,

Addanki Mandal,

Prakasam distt.

….. Petitioner

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9119

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Branch Manager,

State Bank of India (ADB),

Addanki branch.

4.

The Regional Manager,

State Bank of India,

Zonal Office,

Tirupathi.

…..Respondents

Appearances:

For the Petitioner :

Sri S. Prasada Rao, Advocate

For the Respondent: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Jyothi Rosiah who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India

seeking for reinstatement into service as Messenger duly granting all the consequential benefits such as

continuity of service, back wages and all other attendant benefits etc., and such other reliefs as this court

may deem fit. Earlier Petitioner has filed this dispute before the Labour Court, Guntur for adjudication and

later the same has been transferred to this Tribunal bearing ID No. 283/99, as per orders of Central

Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in this

Tribunal as LC No. 34 /2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along

with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference

was answered in favour of the Respondent and against the Workman. That said common award dated

17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along with

batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court vide its’

judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award dated

9120

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government Industrial

Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India was

directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals

were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is extracted

as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9121

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Messenger from 1.1.87 to

31.7.98, and has rendered unblemished service spreading over a period of about 6 years. The Respondent

has terminated services of Workman by oral orders with effect from 31.7.98. Further, it is submitted that

the management of Respondent bank decided to give a chance to temporarily employed personnel “found

suitable for permanent appointment” by wait- listing them by offering permanent appointment or

waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months after

1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36 months

after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee. The

Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of their

respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of the

settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon the

said agreement and the draft, a notification was issued in the newspapers. The last date for responding to

the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held. A

selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was

to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said

letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement

dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was to be

given, “to all eligible temporary employees for permanent appointments. The appointments were against

the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the enormity of

the problem an extension of the currency of the panel, eligible temporary employees who have been

empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter, “will

be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th

settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex

M5. That due to all these settlements which were extended by subsequent settlements thereby created

reasonable expectations in the list of the selected candidates arose with that it’s a question of time their

appointments or services would be regularized in the services of the bank. The Workman was working

with the bank on temporary basis was under the bonafide hope that sooner his services will be regularized

with the bank. He is thereby closed all his options elsewhere. It is needless to point out that employing

9122

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

person to whom hope of employment in substantial terms was made is a facet of Article 21 of the

Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P .. by

order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In

view of the directions given by the High Court all candidates whose names appeared in the select panels

prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid upto

December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made alive

upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank

has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies

of circumstances and on account of the urgent need in its banks, it employed temporary employees in

subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the nature of

temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken by the

bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair labour

practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on the

other to ensure that benefits that a model employer will extend under various statutes to its employees is

not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9123

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

constituted in this regard. The Government of India guidelines made it clear that all the public sector banks

may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned. The approach paper also specify at para 6(c) that the

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were

also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect- that the panel of temporary employees and the panel of daily wage

employees will be operated to a particular period. Therefore, their cases will not be considered. The

Management herein relying upon this settlement in their impugned action. It is submitted that even the

settlement dated 9.1.1991 will not empower the management to terminate the services of the temporary

employees who are working in the bank services like the Workman herein as it does not specify the

termination of the employees. In fact there are so many vacancies wherein the Management has engaged

several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

High Court without considering the cases of the similarly situated candidates like the Workman herein. It

is submitted inspite of engaging fresh candidates as is now being done by the Management they would

have continued the similarly situated candidates like the Workman herein in the services of the bank and

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[PART II—SEC. 3(ii)]

consider their cases for absorption in view of the circulars issued by Central Government as well as the

directions of this Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued

by the Central Government, the Management should not have relied upon the settlement dated 9.1.1991.

Hence, the impugned action of the Management is illegal, unjust, violative of fundamental rights such as

Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties and

sought for absorption. Such employees in the bank services on permanent basis before the date fixed for

carrying out the terms of settlement, the Court held that the members of the union had been empanelled in

the list, they were not regularized and the time was going to run out to the near future and the Respondent

bank and its officers cannot escape from the liability of enforcing the settlement which has been reached

and therefore directed that the bank and the officers shall implement the settlement dated 17.11.87 as

amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the candidates

with effect from 31.7.98 which is arbitrary, discriminatory, contrary to their own guidelines and violative

of the constitutional provisions which are guaranteed in Chapter-III of the Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal

and unfair labour practice which cannot be allowed to be perpetuated. That the discontinuance of the

Workman after 31.3.97 who had served in the bank in any capacity amounts to retrenchment. It could not

have been done without any notice and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the

said action is violative of principles of natural justice guaranteed under Chapter III of the Constitution of

India. This amounts to retrenchment without one month's notice and taken in view of such notice. Thus,

the main proceedings issued by the Respondent is without jurisdiction and is arbitrary, illegal and therefore

liable to be quashed. That the alleged Memorandum of Understanding dated 27.2.97, Ex.M5 does not own

any legal entity, as the said Memorandum of Understanding is not published anywhere to brought to the

notice of the Workman whose rights are being affected. It is submitted that Management did not adhere to

the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled

candidates like the Workman here. It is pertinent to mention here that the Respondent Management sent

letters to the all similarly situated candidates like the Workman in the month of June, 1997, subsequent to

the passing of impugned termination orders. After knowing the facts that the candidates are litigating, the

Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates

like the Workman even in temporary vacancies till they are absorbed permanently in regular vacancies.

Hence, the action of the Respondent Management terminating the services of the Workman by oral order

[भाग II—खण् ि 3(ii)]

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dated 31.3.97 is unjust, illegal, violative of principles of natural justice and hence, the Management be

directed to reinstate and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-

ordinate staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the

restrictions imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent

bank used to engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc.,

depending on the availability of work on purely temporary basis for the smooth and uninterrupted

functioning of the branches. It is submitted that the All India State Bank of India Staff Federation which

represents majority of the employees in the State Bank of India comprising about 98% of the work force as

its' members espoused the cause of temporary employees who have put in less than 240 days of temporary

service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

temporary employees as categorized would be given a chance for being considered for permanent

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear that

all the public sector banks may follow the provisions laid down in the approach paper. The approach paper

specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit of

Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in 12

consecutive months or less, a settlement could be avoided and however if the Management so desired they

could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned that

only those temporary employees who had put in temporary service of 90 days or more days after 1.1.82

would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by

way of a further concession entered into settlements. Even in respect of those who had put in less than 90

days and also the bank went a step further and said those persons who are working after 1975 were also

considered. Hence, there was a genuine effort on the part of the Respondent bank to provide as many as

possible jobs subject to the availability of the vacancies. However, para 6 (k) of the approach paper made

it clear that it is a one time, exercise in full and final, settlement of all the claims and disputes for the past

period, in respect of temporary workmen covered by the settlement. Another settlement was entered on

9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and separate panel

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[PART II—SEC. 3(ii)]

was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies arising

between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers, they can be

considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

absorption. These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees. The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. The Management bank has not violated any of

the provisions of the terms of the said settlement. That the very preparation and maintenance of panel is in

compliance of the terms agreed under these settlements. These settlements were time bound and they

ceased to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management. Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

permanent through back door entry, which would not only be contrary to the settlements but also to

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge.

Thereafter the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the

Hon'ble Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore,

reference to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the

same has already been set aside. The observations made in the Judgements cannot be relied upon for any

purpose what so ever. The question of operation of Sec.25F would not come into play. Further the issue is

covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts.

Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in

evidence which has been exhibited as Ex.W1 to W5. Further, the Workman has filed photocopies of

documents in support of his claim which are discussed as under:-

Ex.W1 is the interview call letter. Ex.W2 is the service certificate. Ex.W3 is the transfer certificate. Ex.W4

is the community, nativity and birth certificate. Ex.W5 is the service certificate.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has

exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the

Settlement dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the

conciliation proceedings dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the

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[PART II—SEC. 3(ii)]

Memorandum of Understanding dt. 27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel.

Ex.M9 is the Particulars of 1989 Non-Messengerial Panel. Ex.M10 is the Particulars of 1992 General

Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court of A.P. in Writ Appeal No.86/98

dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP No. 11886-11888 of 1998

dt.10.8.1998. Ex.M13 is the paper notification.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of

various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, main branch, Addanki in terminating the

services of Workman Sri Jyothi Rosiah, a Messenger with effect from 31.7.98 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid 5th

settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from 31.7.98. The extract of the said letter

is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

31.7.98.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from 31.7.98 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as

per terms of settlements entered into by both parties. Further, the contents of the subsequent letter dated

27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank of India not

to make any temporary messengerial category appointment with effect from 31.7.98 and it has also been

communicated to all concerned that the panels of temporary employees and daily wagers maintained by

Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been issued by

Respondent management that goes to reveal that the said office order has been issued to this effect that,

“Consequent on absorption of temporary employees in permanent cadre, it has been decided by the

competent authority that no one onwards, no further daily labour or temporary employees/appointments

should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the aforesaid orders

that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.7.98 because of the lapsed of panel of temporary workers and

daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th

settlement which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the

parties. Therefore, Workman can not challenge the terms and conditions contained in settlement dated

30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India and State Bank of

India Staff Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated

30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

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[PART II—SEC. 3(ii)]

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before a

competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing the

date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

[भाग II—खण् ि 3(ii)]

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9131

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

Workmen and the Workman as individual do not come into picture. Workman in the instant case has work

as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be utilized

for absorption of such Workman to permanent post in order of their seniority in the list. The Settlement

dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation under

Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position and it is

agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both the

panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of vacancy

of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management of State

Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on 31.7.98 without issuing any notice or paying any salary or compensation in

lieu thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context,

the Workman has examined himself as WW1 who has reiterated that Workman has been terminated from

service by Respondent on 31.7.98 without notice of salary or compensation in lieu thereof. Before

examining the claim of the Workman on merit it would be apposite to reproduce the provision contained

under section 25 F:-

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[PART II—SEC. 3(ii)]

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

conclusion that 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

[भाग II—खण् ि 3(ii)]

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particular period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

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[PART II—SEC. 3(ii)]

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., 31.7.98.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange and did not undergo the regular process of selection

before my engagement as temporary messenger in the branch..”

“It is true that I did not work for 240 days in any year in my entire service in the bank in any branch.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously

in any 12 months of a calendar year just preceding from the date of his termination in the Respondent bank.

Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked

for 240 days continuously in calendar year just preceding from the date of his termination i.e., 31.7.98.

Thus, the claim of the Workman that he has been terminated by oral order without issuing notice or

payment in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not

tenable. However the documents filed by the Workman in support of his claim, number of days worked

with the Respondent goes to reveal that the Workman had worked intermittently as daily wager depending

upon availability of work in branch. Workman did not file any document of appointment letter or salary

slips in support of his claim for appointment as a non-messenger in the Respondent branch on

temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force

in the argument advanced by the Respondent that in the instant matter, Workman was not terminated from

service by order dated 31.7.98 rather he was disengaged in view of the non-availability of the work in the

branch. Further, there was direction issued by the Head Office of the Respondent authority not to engage

any daily wager Workman/ temporary Worker w.e.f. 31.7.98. Thus, such disengagement of Workman does

not amount to termination. Moreover, the Workman failed to prove his claim that he was terminated in

contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to establish his plea by any oral or

documentary evidence that he had worked for 240 days continuously in a twelve months of calendar year

just preceding from date of termination i.e., 31.7.98.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of

1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office

[भाग II—खण् ि 3(ii)]

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not to make any temporary appointments in messengerial cadre from 31.7.98, therefore it was directed to

issue suitable instructions not to make temporary appointments from 31.7.98. There is no mention in this

order that the Workman herein has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is directed

to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these circulars do

not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank

by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman

that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the

service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes to reveal

that he had worked as a daily wager for which he has been paid wages according to number of working

days. As there was an order for prohibition for engaging temporary workmen, in the bank, therefore,

Workman could not be engaged by the Respondent for work from 31.7.98 and there after. It is settled law

that the daily wagers are engaged by the employer depending upon the availability of work and as the work

was not available the Workman was not engaged further by the Respondent management. Therefore, the

Workman on the ground of number of days he had worked in the Respondent bank cannot claim any right

to reinstate him into the employment. As the Workman failed to prove the mandatory condition of 240

days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the disengagement of

Workman from work can not be termed in contravention of provision contained under Sec.25F and 25 B of

the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

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[PART II—SEC. 3(ii)]

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and that

thereafter the said panels would lapse. It was also agreed that within the framework of the above

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further,

Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation’s affiliate and the bank management regarding the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by central office and thereby 403

messengerial vacancies were sanctioned to the circle of the Management bank and it was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time

non-messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties. It

is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot be

extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997 in

view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As the

lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court

have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9137

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion and

finding given at Point No. I regarding binding nature of Settlements and terms and conditions enumerated

therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the considered view that

life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and plea of Workman

that the panel shall continue even after 31.3.1997 till last man absorbed has no legal force and

same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies

falls upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to the

permanent post were seniors in number of working days in panel list and Workman herein was junior to

those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

In this context the Workman witness WW1 was cross examined by the Respondent counsel and in

the cross examination the witness WW1 states:-

“Prior to my oral appointment in 1987 there was no notification.”

…”I used to work depending upon availability of work in the branch. I am not aware of the settlements

between the federation and the Management. …. Further witness states, “It is true that I am not having any

documents to show that any of my juniors are continuing in service in the bank.”

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[PART II—SEC. 3(ii)]

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in

terms of various settlements entered into between Staff Federation of State Bank of India and State Bank of

India and it was prepared on the basis of number of days of work put in by the temporary employees.

Further, the Workman himself admitted that some of the temporary employees whose names were included

in the panel were given regular appointment in the bank in order of their seniority in the panel and he is not

having any document to show that any person who worked for less number of days than the Workman was

given appointment in the bank. Therefore, the allegation of the Workman that the regular appointment has

been made by the bank from the panel list in breach of the terms of the settlement and violation of seniority

of panel list is not proved by this evidence of WW1. Thus, there is no evidence on record that bank has

given the appointment to the temporary employees as well as daily wagers from the panel list 1989 and

1992 in breach of seniority of the temporary employees in the list. There is no evidence of jumbling in the

panel list to make appointment of any permanent Workman in breach of the seniority. Therefore, I am

constrained to hold that the Respondent Management has appointed the workmen from panel list in order

of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of

panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of

Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant

therein Hon’ble Supreme Court have has laid down principle regarding regularization of the Workman on

permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization of the workmen

to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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labour practice by not filling up permanent posts even though such posts are available and by continuing

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman

failed to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies

were existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of

his seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also

not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross examination

has himself admitted this fact that, some of the temporary employees whose names were included in the

panel were given regular appointment in the bank in order of their seniority in the panel. The Workman

failed to show that there was any breach of terms of settlement has been committed by the Respondent in

appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

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[PART II—SEC. 3(ii)]

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9141

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities

must consider his case for regularization provided he is eligible and qualified according to the rules and

his service record is satisfactory and his appointment does not run counter to the reservation policy of

the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1

in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were

entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994

for those temporary employees who has worked on scale wages. Further, MW1 states that two different

panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank. There are

four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and Visakhapatnam.

MW1 states that the temporary employees so empanelled were given permanent absorption depending

upon the vacancies so arise strictly in terms of the settlement. MW1 states that on 9.6.1995 conciliation

proceeding was held before the RLC(C), Hyderabad and in said proceedings it was decided that the panels

will be kept live up to 31.3.1997 and vacancies will be filled from both the lists concurrently. A copy of

the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another settlement was

entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies arising

up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel

so prepared were to be considered against vacancies arising from January 1995 to December 1996,

thereafter the said panels lapse. MW1 states that it was also agreed that all the non- messenger positions in

subordinate cadre including part time attendants specially provided as leave reserve will be filled before

31.3.1997 and as regards to non-messengerial positions it is agreed that all such posts sanctioned and fallen

vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus in both the cases

empanelled list were lapsed on 31.7.98. Ex.M6 is the copy of the settlement dated 30.7.1996. Further,

witness states that on 27.2.1997 a memorandum of understanding was reached between the SBI and SBI

Staff Federation providing that both the panels above mentioned will lapse on 31.3.1997. Ex.M7 is the

copy of the memorandum of understanding and Ex.M8 is the copy of the statements giving the particulars

of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non- messenger panel, Ex.M10

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[PART II—SEC. 3(ii)]

is the copy of statement of 1992 panel. Further, witness states that petitioner was included in the 1989

panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly

in accordance with the settlements reached from time to time between SBI and SBI staff federation and as

per seniority, number of days of temporary service put in by them in the bank in the given period. Further,

MW1 states petitioner was not sponsored by any employment exchange he did not undergo the regular

process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary

employees were terminated from service by the bank. Further, MW1 states that the vacancies were filled

up on regular basis with the temporary employees from the panels and these panels were expired in terms

of the settlements so reached and there were no vacancies to absorb such employees. Thus, witness MW1

has proved the documents Ex.M1 to Ex.M12 and also contentions made in the counter. However, MW1

was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross examination so as

to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on 31.3.1997

and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels

were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized

after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the

aforesaid testimony of the MW1 in re-examination in the absence of cross examination remained

uncontraverted, the claim of the Workman that he was entitled for absorption in permanent post in the

branch of Respondent Management on the basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman

is not entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri Jyothi Rosiah, Ex. Messenger by way of oral orders w.e.f. 31.7.98 is justified. Hence,

the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit,

hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 11th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Jyothi Rosiah

MW1: Sri I.S. Appa Rao

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9143

Documents marked for the Petitioner

Ex.W1:

Photocopy of interview call letter

Ex.W2:

Photocopy of service certificate

Ex.W3:

Photocopy of the transfer certificate

Ex.W4:

Photocopy of community, nativity and birth certificate

Ex.W5:

Photocopy of Service certificate

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C)

dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 6 अगस् त, 2026

का.आ. 1737.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh;

ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्मकार श्री र्ादिराला अन्जाइअह ds chp

vuqca/k esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैिराबाि ds iapkV

(39/2003) प्रकाडित djrh gSA

[la- ,y-12025/01/2026-vkbZvkj(बी-I)-173]

सलोनी, उप डनिेिक

9144

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

New Delhi, the 6th August, 2026

S.O. 1737.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (Ref. 39/2003) of the Central Government Industrial

Tribunal-cum-Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the

management of State Bank of India and their workman Sri Maddirala Anjaiah.

[No. L-12025/01/2026- IR (B-I)-173]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 16th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 39/2003

[Old ID No. 269/99 of Labour Court, Guntur]

Between:

Sri Maddirala Anjaiah,

S/o Samalu,

Takkellapadu,

Naguluppalpadu mandal,

Prakasam distt.

… Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Branch Manager,

State Bank of India, A.D.B.,

Addanki branch.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9145

4.

The Regional Manager,

State Bank of India,

Zonal office,

Tirupathi.

…..Respondents

Appearances:

For the Petitioner :

M/s. S. Prasada Rao, Advocates

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Maddirala Anjaiah who worked as Messenger (who will be referred to as the workman) has

filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank

of India seeking for reinstatement into service as Messenger duly granting all the consequential benefits

such as continuity of service, back wages and all other attendant benefits etc., and such other reliefs as this

court may deem fit. Earlier Petitioner has filed this dispute before the Labour Court, Guntur for

adjudication and later the same has been transferred to this Tribunal bearing ID No. 269/99, as per orders

of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in

this Tribunal as LC No. 39/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along

with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference

was answered in favour of the Respondent and against the Workman. That said common award dated

17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along with

batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court vide its’

judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award dated

17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government Industrial

Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India was

directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals

were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is extracted

as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

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[PART II—SEC. 3(ii)]

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Messenger from 11.5.84 to

31.7.98 and has rendered unblemished service spreading over a period of about 14 years. The Respondent

has terminated services of Workman by oral orders with effect from 31.7.98. Further, it is submitted that

the management of Respondent bank decided to give a chance to temporarily employed personnel “found

suitable for permanent appointment” by wait- listing them by offering permanent appointment or

waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months after

1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36 months

after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee. The

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9147

Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of their

respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of the

settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon the

said agreement and the draft, a notification was issued in the newspapers. The last date for responding to

the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held. A

selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was

to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said

letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement

dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was to be

given, “to all eligible temporary employees for permanent appointments. The appointments were against

the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the enormity of

the problem an extension of the currency of the panel, eligible temporary employees who have been

empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter, “will

be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th

settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex

M5. That due to all these settlements which were extended by subsequent settlements thereby created

reasonable expectations in the list of the selected candidates arose with that it’s a question of time their

appointments or services would be regularized in the services of the bank. The Workman was working with

the bank on temporary basis was under the bonafide hope that sooner his services will be regularized with

the bank. He is thereby closed all his options elsewhere. It is needless to point out that employing person to

whom hope of employment in substantial terms was made is a facet of Article 21 of the Constitution

of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P .. by

order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In

view of the directions given by the High Court all candidates whose names appeared in the select panels

prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid upto

December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made alive

upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank

has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies

of circumstances and on account of the urgent need in its banks, it employed temporary employees in

subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the nature of

temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken by the

bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair labour

practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on the

other to ensure that benefits that a model employer will extend under various statutes to its employees is

not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

constituted in this regard. The Government of India guidelines made it clear that all the public sector banks

may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned. The approach paper also specify at para 6(c) that the

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

[भाग II—खण् ि 3(ii)]

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9149

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were

also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect-that the panel of temporary employees and the panel of daily wage employees

will be operated to a particular period. Therefore, their cases will not be considered. The Management

herein relying upon this settlement in their impugned action. It is submitted that even the settlement dated

9.1.1991 will not empower the management to terminate the services of the temporary employees who are

working in the bank services like the Workman herein as it does not specify the termination of the

employees. In fact there are so many vacancies wherein the Management has engaged several new persons

as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble High Court without

considering the cases of the similarly situated candidates like the Workman herein. It is submitted inspite

of engaging fresh candidates as is now being done by the Management they would have continued the

similarly situated candidates like the Workman herein in the services of the bank and consider their cases

for absorption in view of the circulars issued by Central Government as well as the directions of this

Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central

Government, the Management should not have relied upon the settlement dated 9.1.1991. Hence, the

impugned action of the Management is illegal, unjust, violative of fundamental rights such as Articles

14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties and

sought for absorption. Such employees in the bank services on permanent basis before the date fixed for

carrying out the terms of settlement, the Court held that the members of the union had been empanelled in

the list, they were not regularized and the time was going to run out to the near future and the Respondent

bank and its officers cannot escape from the liability of enforcing the settlement which has been reached

and therefore directed that the bank and the officers shall implement the settlement dated 17.11.87 as

amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the candidates

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[PART II—SEC. 3(ii)]

with effect from 31.3.1997 which is arbitrary, discriminatory, contrary to their own guidelines and

violative of the constitutional provisions which are guaranteed in Chapter-III of the Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal

and unfair labour practice which cannot be allowed to be perpetuated. That the discontinuance of the

Workman after 31.3.97 who had served in the bank in any capacity amounts to retrenchment. It could not

have been done without any notice and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the

said action is violative of principles of natural justice guaranteed under Chapter III of the Constitution of

India. This amounts to retrenchment without one month's notice and taken in view of such notice. Thus, the

main proceedings issued by the Respondent is without jurisdiction and is arbitrary, illegal and therefore

liable to be quashed. That the alleged Memorandum of Understanding dated 27.2.97, Ex.M5 does not own

any legal entity, as the said Memorandum of Understanding is not published anywhere to brought to the

notice of the Workman whose rights are being affected. It is submitted that Management did not adhere to

the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled

candidates like the Workman here. It is pertinent to mention here that the Respondent Management sent

letters to the all similarly situated candidates like the Workman in the month of June, 1997, subsequent to

the passing of impugned termination orders. After knowing the facts that the candidates are litigating, the

Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates

like the Workman even in temporary vacancies till they are absorbed permanently in regular vacancies.

Hence, the action of the Respondent Management terminating the services of the Workman by oral order

dated 31.3.97 is unjust, illegal, violative of principles of natural justice and hence, the Management be

directed to reinstate and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate

staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions

imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to

engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc., depending on the

availability of work on purely temporary basis for the smooth and uninterrupted functioning of the

branches. It is submitted that the All India State Bank of India Staff Federation which represents majority

of the employees in the State Bank of India comprising about 98% of the work force as its' members

espoused the cause of temporary employees who have put in less than 240 days of temporary service in 12

calendar months in the bank and who were ineligible for any protection under Industrial Disputes Act,

1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

temporary employees as categorized would be given a chance for being considered for permanent

[भाग II—खण् ि 3(ii)]

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9151

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear that

all the public sector banks may follow the provisions laid down in the approach paper. The approach paper

specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit of

Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in 12

consecutive months or less, a settlement could be avoided and however if the Management so desired they

could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned that

only those temporary employees who had put in temporary service of 90 days or more days after 1.1.82

would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by

way of a further concession entered into settlements. Even in respect of those who had put in less than 90

days and also the bank went a step further and said those persons who are working after 1975 were also

considered. Hence, there was a genuine effort on the part of the Respondent bank to provide as many as

possible jobs subject to the availability of the vacancies. However, para 6 (k) of the approach paper made it

clear that it is a one time, exercise in full and final, settlement of all the claims and disputes for the past

period, in respect of temporary workmen covered by the settlement. Another settlement was entered on

9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and separate panel

was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies arising

between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers, they can be

considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

absorption. These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees. The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

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[PART II—SEC. 3(ii)]

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. The Management bank has not violated any of the

provisions of the terms of the said settlement. That the very preparation and maintenance of panel is in

compliance of the terms agreed under these settlements. These settlements were time bound and they

ceased to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management. Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

permanent through back door entry, which would not only be contrary to the settlements but also to

[भाग II—खण् ि 3(ii)]

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9153

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge. Thereafter

the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the Hon'ble

Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore, reference

to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the same has

already been set aside. The observations made in the Judgements cannot be relied upon for any purpose

what so ever. The question of operation of Sec.25F would not come into play. Further the issue is covered

by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts. Hence, the

reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in

evidence which has been exhibited as Ex.W1 to W7. Further, the Workman has filed photocopies of

documents in support of his claim which are discussed as under:-

Ex.W1 is the service certificate. Ex.W2 is the transfer certificate. Ex.W3 is the caste certificate. Ex.W4 is

the call letter. Ex.W5 is the service certificate. Ex.W6 is the conduct certificate. Ex.W7 is the nativity

certificate.

21.

On the other hand, Respondent has examined witness MW1 Sri I.s. Appa Rao and this witness has

exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the

Settlement dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the

conciliation proceedings dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the

Memorandum of Understanding dt. 27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel.

Ex.M9 is the Particulars of 1989 Non-Messengerial Panel. Ex.M10 is the Particulars of 1992 General

Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court of A.P. in Writ Appeal No.86/98

dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP No. 11886-11888 of 1998

dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of

various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

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[PART II—SEC. 3(ii)]

II.

Whether the action of State Bank of India, Addanki ADB branch, in terminating the

services of Workman Sri Maddirala Anjaiah, a Messenger with effect from 31.7.98 is

justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid 5th

settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from 31.3.1997. The extract of the said

letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

31.3.1997.”

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9155

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997

as per terms of settlements entered into by both parties. Further, the contents of the subsequent letter dated

27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank of India not

to make any temporary messengerial category appointment with effect from 31.3.1997 and it has also been

communicated to all concerned that the panels of temporary employees and daily wagers maintained by

Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been issued by

Respondent management that goes to reveal that the said office order has been issued to this effect that,

“Consequent on absorption of temporary employees in permanent cadre, it has been decided by the

competent authority that no one onwards, no further daily labour or temporary employees/appointments

should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the aforesaid orders

that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers

and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the

5th settlement which has been arrived at between the parties on dated 30.7.1996 with the consensus of both

the parties. Therefore, Workman can not challenge the terms and conditions contained in settlement dated

30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India and State Bank of

India Staff Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated

30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

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[PART II—SEC. 3(ii)]

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before a

competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing the

date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

Workmen and the Workman as individual do not come into picture. Workman in the instant case has work

as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be utilized

for absorption of such Workman to permanent post in order of their seniority in the list. The Settlement

dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation under

Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position and it is

agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both the

panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of vacancy

of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management of State

Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on 31.7.98 without issuing any notice or paying any salary or compensation in

lieu thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context,

the Workman has examined himself as WW1 who has reiterated that Workman has been terminated from

service by Respondent on 31.7.98 without notice of salary or compensation in lieu thereof. Before

examining the claim of the Workman on merit it would be apposite to reproduce the provision contained

under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

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[PART II—SEC. 3(ii)]

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

conclusion that 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 period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., 31.3.1997.

In this context, WW1 in his cross examination has stated that,

“ My service was for total no. of 196 days spread with gaps from time to time for the period from 1984 to

1986 which is Ex.W5…..

I was not sponsored by employment exchange. ….. It is not true to suggest that I never worked for 240 days

in a year continuously and I was casual worker I am not entitled for any relief.”

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[PART II—SEC. 3(ii)]

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously

in any 12 months of a calendar year just preceding from the date of his termination in the Respondent bank.

Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked

for 240 days continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997.

Thus, the claim of the Workman that he has been terminated by oral order without issuing notice or

payment in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not

tenable. However the documents filed by the Workman in support of his claim, number of days worked

with the Respondent goes to reveal that the Workman had worked intermittently as daily wager depending

upon availability of work in branch. Workman did not file any document of appointment letter or salary

slips in support of his claim for appointment as a non-messenger in the Respondent branch on

temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force

in the argument advanced by the Respondent that in the instant matter, Workman was not terminated from

service by order dated 31.7.98 rather he was disengaged in view of the non-availability of the work in the

branch. Further, there was direction issued by the Head Office of the Respondent authority not to engage

any daily wager Workman/ temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman

does not amount to termination. Moreover, the Workman failed to prove his claim that he was terminated

in contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to establish his plea by any oral

or documentary evidence that he had worked for 240 days continuously in a twelve months of calendar

year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of

1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office

not to make any temporary appointments in messengerial cadre from 31.3.1997, therefore it was directed to

issue suitable instructions not to make temporary appointments from 31.3.1997. There is no mention in this

order that the Workman herein has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is directed

to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these circulars do

not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank

by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman

that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the

service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes to reveal

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9161

that he had worked as a daily wager for which he has been paid wages according to number of working

days. As there was an order for prohibition for engaging temporary workmen, in the bank, therefore,

Workman could not be engaged by the Respondent for work from 31.3.1997 and there after. It is settled

law that the daily wagers are engaged by the employer depending upon the availability of work and as the

work was not available the Workman was not engaged further by the Respondent management. Therefore,

the Workman on the ground of number of days he had worked in the Respondent bank cannot claim any

right to reinstate him into the employment. As the Workman failed to prove the mandatory condition of

240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the disengagement

of Workman from work can not be termed in contravention of provision contained under Sec.25F and 25 B

of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and that

thereafter the said panels would lapse. It was also agreed that within the framework of the above

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[PART II—SEC. 3(ii)]

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further, Respondent

contended that on 27.2.1997 a memorandum of understanding was also signed between the Federation’s

affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial

vacancies were sanctioned to the circle of the Management bank and it was agreed that these vacancies

may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties. It

is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot be

extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997 in

view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As the

lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court

have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9163

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion and

finding given at Point No. I regarding binding nature of Settlements and terms and conditions enumerated

therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the considered view that

life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and plea of Workman

that the panel shall continue even after 31.3.1997 till last man absorbed has no legal force and same

is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies falls

upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to the

permanent post were seniors in number of working days in panel list and Workman herein was junior to

those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence

that, “The Petitioner has not completed 240 days of service in a calendar year.” Although this witness was

cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the

claim of the Petitioner that he has been removed from service by the management illegally is untenable.

Further, witness MW1 in his chief statement has stated that, “The temporary messengers and Non-

messengers were engaged by the bank in leave vacancies and for administrative exigencies. The Petitioner

did not work continuously for 240 days in any year or over a period of 36 months.” This statement of

witness MW1 remained uncontroverted as the Petitioner did not cross examine the witness MW1 on this

point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil eligibility criteria

of working days as required for regularisation. Therefore, he was not given regularisation in the

employment of the Respondent. Therefore, in view of the statement of MW1, the claim of the Petitioner

that he was refused regularization by the Respondent management illegally, is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

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[PART II—SEC. 3(ii)]

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of

panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of

Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant

therein Hon’ble Supreme Court have has laid down principle regarding regularization of the Workman on

permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization of the workmen

to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

labour practice by not filling up permanent posts even though such posts are available and by continuing

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9165

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed

to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies were

existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of his

seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also

not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross examination

has himself admitted this fact that, some of the temporary employees whose names were included in the

panel were given regular appointment in the bank in order of their seniority in the panel. The Workman

failed to show that there was any breach of terms of settlement has been committed by the Respondent in

appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

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[PART II—SEC. 3(ii)]

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities

must consider his case for regularization provided he is eligible and qualified according to the rules and

his service record is satisfactory and his appointment does not run counter to the reservation policy

of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9167

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1

in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were

entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994

for those temporary employees who has worked on scale wages. Further, MW1 states that two different

panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank. There are

four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and Visakhapatnam.

MW1 states that the temporary employees so empanelled were given permanent absorption depending

upon the vacancies so arise strictly in terms of the settlement. MW1 states that on 9.6.1995 conciliation

proceeding was held before the RLC(C), Hyderabad and in said proceedings it was decided that the panels

will be kept live up to 31.3.1997 and vacancies will be filled from both the lists concurrently. A copy of the

said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another settlement was

entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies arising

up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel

so prepared were to be considered against vacancies arising from January 1995 to December 1996,

thereafter the said panels lapse. MW1 states that it was also agreed that all the non- messenger positions in

subordinate cadre including part time attendants specially provided as leave reserve will be filled before

31.3.1997 and as regards to non-messengerial positions it is agreed that all such posts sanctioned and fallen

vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus in both the cases

empanelled list were lapsed on 31.3.1997. Ex.M6 is the copy of the settlement dated 30.7.1996. Further,

witness states that on 27.2.1997 a memorandum of understanding was reached between the SBI and SBI

Staff Federation providing that both the panels above mentioned will lapse on 31.3.1997. Ex.M7 is the

copy of the memorandum of understanding and Ex.M8 is the copy of the statements giving the particulars

of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non- messenger panel, Ex.M10

is the copy of statement of 1992 panel. Further, witness states that petitioner was included in the 1989

panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per

seniority, number of days of temporary service put in by them in the bank in the given period. Further,

MW1 states petitioner was not sponsored by any employment exchange he did not undergo the regular

process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary

employees were terminated from service by the bank. Further, MW1 states that the vacancies were filled

up on regular basis with the temporary employees from the panels and these panels were expired in terms

of the settlements so reached and there were no vacancies to absorb such employees. Thus, witness MW1

has proved the documents Ex.M1 to Ex.M12 and also contentions made in the counter. However, MW1

was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross examination so as

to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on 31.3.1997

and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels

were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized

after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the

aforesaid testimony of the MW1 in re-examination in the absence of cross examination remained

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

uncontraverted, the claim of the Workman that he was entitled for absorption in permanent post in the

branch of Respondent Management on the basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman

is not entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri Maddirala Anjaiah, Ex. Messenger by way of oral orders w.e.f. 31.7.98 is justified.

Hence, the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman

sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 16th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Maddirala Anjaiah

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1:

Photocopy of service certificate

Ex.W2:

Photocopy of transfer certificate

Ex.W3:

Photocopy of caste certificate

Ex.W4:

Photocopy of call letter

Ex.W5:

Photocopy of service certificate

Ex.W6:

Photocopy of conduct certificate

Ex.W7:

Photocopy of nativity certificate

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C)

dt.9.6.1995

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9169

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई दिल्ली, 6 अगस् त, 2026

का.आ. 1738.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa dsUnzh;

ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्मकार श्री येिलूरी र्ुसलइअह ds chp

vuqca/k esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;] हैिराबाि ds iapkV

(40/2003) प्रकाडित djrh gSA

[la- ,y-12025/01/2026-vkbZvkj(बी-I)-174]

सलोनी, उप डनिेिक

New Delhi, the 6th August, 2026

S.O. 1738.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the

Central Government hereby publishes the Award (Ref. 40/2003) of the Central Government Industrial

Tribunal-cum-Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the

management of State Bank of India and their workman Sri Yedluri Musaliah.

[No. L-12025/01/2026- IR (B-I)-174]

SALONI, Dy. Director

ANNEXURE

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 16th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 40/2003

[Old ID No. 284/99 of Labour Court, Guntur]

Between:

Sri Yedluri Musaliah,

S/o Mattaiah,

Pokuru branch,

Prakasam distt.

… Petitioner

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Branch Manager,

State Bank of India,

Pokuru branch.

4.

The Regional Manager,

State Bank of India,

Zonal office,

Tirupathi.

…..Respondents

Appearances:

For the Petitioner :

Sri Macherla Rangaiah, Advocate

For the Respondent:

Sri K. Rathanga Pani Reddy, Advocate

AWARD

Sri Yedluri Musaliah who worked as Messenger (who will be referred to as the workman) has filed

this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of

India seeking for reinstatement into service as Messenger duly granting all the consequential benefits such

as continuity of service, back wages and all other attendant benefits etc., and such other reliefs as this court

may deem fit. Earlier Petitioner has filed this dispute before the Labour Court, Guntur for adjudication and

later the same has been transferred to this Tribunal bearing ID No. 284/99, as per orders of Central

Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in this

Tribunal as LC No. 40/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a

bird eye view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along

with the batch cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference

was answered in favour of the Respondent and against the Workman. That said common award dated

17.5.2005 was challenged by the aggrieved Workmen in various Writ petition No.6470/2014 along with

batch of writ petitions before the Hon’ble High Court of Andhra Pradesh and Hon’ble High Court vide its’

judgement dated 23.6.2014 allowed all batch of writ petitions and set aside the common award dated

17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases by Central Government Industrial

Tribunal cum Labour Court, Hyderabad and the Respondent management of State Bank of India was

directed to reengage the Writ Petitioners in position, which they have been occupying prior to their

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9171

termination and further directed to consider their cases for regularization as and when the substantive

vacancy arises. This judgement dated 23.6.2014 of Hon’ble High Court of AP, passed in WP

No.6470/2014 and batch petitions was challenged by Respondent management before the Hon’ble High

Court in Writ Appeal No. 1268 of 2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals

were decided by Division Bench of High Court of Andhra Pradesh by a common judgement dated

20.3.2019. Hon’ble High Court in aforesaid Writ Appeal was pleased to pass the order which is extracted

as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting

unofficial Respondents, we see that while the learned single Judge was justified in setting aside the award

af the Tribunal, the proper course to be adopted was to remit all the cases to the Tribunal. This we say for

reasons more than one. Firstly, in such matters, claims have to be decided on individual basis, as different

persons have different claims as to the length of officiation or discharge of duties and functions; quality of

engagement, drawings, accounting of the post for each one of them, who have worked etc. All these issues

will not be the same in all the cases. Therefore, each case ought to have been directed to be decided by the

Tribunal afresh on individual basis. The second and most important aspect is the learned single Judge has

in one go ordered re-employment of all the workmen. This is not a relief that could have been granted

without answering the individual issues; each issue relating to each case could not have been decided by

the writ Court within the format of its adjudication procedures and scope. The adjudicating body, which

has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain

the order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the

further findings and directions, issued through the impugned order have to go and the individual cases

have to be sent back for consideration of the Tribunal. Such further procedure before the Tribunal will

have to be carried forward with the materials already on record and also by affording an opportunity to

the persons, who have claims as well as the management to place their rival contentions and further

material before the Tribunal. The learned counsel appearing for the workmen are justified in pointing out

that enormous delay has already happened and further action by the Tribunal in this line may be

expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the

common award dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an

outer limit of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon’ble High Court of Andhra Pradesh in W.A.No.1268 of 2014

and batch cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it

afresh in view of the aforesaid guidelines laid down by the Hon’ble High Court in Writ Appeal

No.1268/2014 vide judgement dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement

are that, the Workman joined in the service of the management institution as Messenger from 1.7.75 to

31.7.98 and has rendered unblemished service spreading over a period of about 22 years. The Respondent

has terminated services of Workman by oral orders with effect from 31.7.98. Further, it is submitted that

the management of Respondent bank decided to give a chance to temporarily employed personnel “found

suitable for permanent appointment” by wait- listing them by offering permanent appointment or

waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff

Federation and the Management of State Bank of India - settlement one, under this settlement three

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

categories of employees were listed. That is, A) those who have completed 240 days in 12 months or less

after 1.7.1975. B) those who have completed 270 days in any continuous block of 36 calendar months after

1.7.1975. C) (i) those who have completed minimum of 30 days aggregate temporary service in any

calendar year after 1.7.1975 or (ii) 70 days aggregate temporary service in continuous block of 36 months

after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection

committee and the said selection committee would determine the suitability of the said candidate for

permanent appointment. Therefore, the bank prescribed certain qualifications and from among the

candidates satisfying the qualifications the suitable candidates were enlisted by a selection committee. The

Clause 7 of the said agreement provided with the selected candidate would be wait listed in order of their

respective categorization and the selected panel would be valid upto December, 1991. Clause 10 of the

settlement specifically provided that henceforth. “there will be no temporary appointments in the

subordinate cadre”, except on a restrictive basis in the specified category, “from amongst empanelled

candidates as per existing guidelines of the bank”. The Workman further submits that consequent upon the

said agreement and the draft, a notification was issued in the newspapers. The last date for responding to

the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was held. A

selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was

to be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said

letter it is mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement

dated 16.7.88 was entered into between the parties. In terms of the said agreement a chance was to be

given, “to all eligible temporary employees for permanent appointments. The appointments were against

the vacancies likely to arise during the years 1995-96, circular made it clear that in view of the enormity of

the problem an extension of the currency of the panel, eligible temporary employees who have been

empanelled could not appear in the earlier interviews and have been pursuing their cases thereafter, “will

be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th

settlement (Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex

M5. That due to all these settlements which were extended by subsequent settlements thereby created

reasonable expectations in the list of the selected candidates arose with that it’s a question of time their

appointments or services would be regularized in the services of the bank. The Workman was working with

the bank on temporary basis was under the bonafide hope that sooner his services will be regularized with

the bank. He is thereby closed all his options elsewhere. It is needless to point out that employing person to

whom hope of employment in substantial terms was made is a facet of Article 21 of the Constitution

of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR,

dated 16.8.1990. Under said circular the chief Executives of all public sector banks including the

Management herein were specifically instructed that until the problem of existing temporary employees is

fully resolved, no bank is permitted to make any permanent appointments. That some of the persons

similarly situated like this Workman aggrieved by the inaction on the part of the management of the bank

is not regularizing their services from out of the selected panel and not clearly focusing the vacancy

position, filed W.P. No. 4194/97 before Hon’ble High court of A.P.. It is specifically averred in the said

writ petition that the Management of the bank had failed to implement the settlement and that it violates the

various fundamental rights guaranteed under the constitution of India. The Hon’ble High court of A.P .. by

order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It also

directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon’ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In

view of the directions given by the High Court all candidates whose names appeared in the select panels

prepared on the basis of the agreement entered into on 17.11.87 under which the panel was valid upto

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9173

December, 1991, and on the basis of a settlement dated 27.10.1988 whereby the panels were made alive

upto 31.3.1997 under which the panel was valid upto December, 1999. The other agreement dated

16.7.1988 under which the panel was valid upto 1992 and on the basis of the settlement dated 27.10.1998

whereby the panels were made alive upto 31.3.1997 were under the bonafide impression that their cases

will be considered for regularization and were living on the basis of the said reasonable expectation.

Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the settlements

entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees

those who are in services of the bank from 1.4.97. The said order was followed by the Management.

Aggrieved by the said action the Workman herein and similarly situated candidates have filed a writ

petition before the Hon'ble High Court and by way of Writ Petition No.9206/97 seeking a declaration that

the proceedings issued by the Deputy General Manager and the Assistant General Manager (Respondents

3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as illegal and also non-continuance of the Workmen

therein in service by absorbing them in the services of the bank as violative of Section 2(p) and 18(1) read

with Rule 58 of Central Rules and sought for specific direction to the bank to absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank

has submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies

of circumstances and on account of the urgent need in its banks, it employed temporary employees in

subordinate cadre. It is pertinent to mention that it does not state the urgent or need or the nature of

temporary employees that it had engaged. Enquiry into the same would reveal that the stand taken by the

bank either on the ground of urgent need or of temporary employees is a façade to perpetuate unfair labour

practice. It is designed to on the one hand, keep the employed in the erroneous zone of hope and on the

other to ensure that benefits that a model employer will extend under various statutes to its employees is

not required to be borne out by the bank. A reading of the counter affidavit would show that the bank

would opines that being just fair and reasonable are which obviously is reprehensible and is a facet of

unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated

17.11.87, 16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of

Government dated 16.8.90 stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with

regard to recruitment and absorption of temporary employees in public sector banks. The said guidelines

were issued to implement on the lines of the approach paper on the issue provided by a committee

constituted in this regard. The Government of India guidelines made it clear that all the public sector banks

may follow the provisions laid down in the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than

240 days of temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F

may be decided by entering into a settlement with the representative union. In respect of temporary

employees who had put in less than 240 days of service in 12 consecutive months or less, a settlement

could be avoided and however if the Management so desired, they could enter into a conciliation settlement

with the representative union. Para 6(h), it is mentioned that only those temporary employees who had put

in temporary service of 90 or more days after 1.1 1982 would be eligible for considering under the scheme.

Although the Government guidelines envisaged for a settlement in respect of employees who had put in

temporary service of 90 or more days, the bank by way of further concession entered into settlements Even

in respect of those who had put in less than 90 days. As such, it could be Seen that the settlements are more

beneficial to the temporary employees concerned. The approach paper also specify at para 6(c) that the

banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the

scheme. The Respondents have gone further wherein even persons working after 1975 were

also considered.

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[PART II—SEC. 3(ii)]

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to

provide permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be

one time exercise in full and final settlement of all the aims and disputes for the past period in respect of

temporary workmen covered by the settlement. This would mean that the Government of India guidelines

would cover only those persons who were temporarily employed for the period specified therein and not

otherwise. As such, it is submitted that the Respondents have not only followed the Government of India

guidelines but in fact covered cases of the employees who had worked for less than 90 days. As such,

question of violation does not arise and in any case those were only broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein

there is a clause to the effect- that the panel of temporary employees and the panel of daily wage

employees will be operated to a particular period. Therefore, their cases will not be considered. The

Management herein relying upon this settlement in their impugned action. It is submitted that even the

settlement dated 9.1.1991 will not empower the management to terminate the services of the temporary

employees who are working in the bank services like the Workman herein as it does not specify the

termination of the employees. In fact there are so many vacancies wherein the Management has engaged

several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of Hon’ble

High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have

continued the similarly situated candidates like the Workman herein in the services of the bank and

consider their cases for absorption in view of the circulars issued by Central Government as well as the

directions of this Hon'ble Court in Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued

by the Central Government, the Management should not have relied upon the settlement dated 9.1.1991.

Hence, the impugned action of the Management is illegal, unjust, violative of fundamental rights such as

Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where

in they have complained about the non- implementation of the settlements arrived between the parties and

sought for absorption. Such employees in the bank services on permanent basis before the date fixed for

carrying out the terms of settlement, the Court held that the members of the union had been empanelled in

the list, they were not regularized and the time was going to run out to the near future and the Respondent

bank and its officers cannot escape from the liability of enforcing the settlement which has been reached

and therefore directed that the bank and the officers shall implement the settlement dated 17.11.87 as

amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the

workmen to be absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the

date of settlement even the authorities want to make temporary appointments that should be made only

from among the empanelled can be appointed either for temporary vacancy or permanent vacancy except

from among the empanelled candidates like the Workman and that should be continued till they are

absorbed. The management committed unfair labour practices and terminated the services of the candidates

with effect from 31.3.1997 which is arbitrary, discriminatory, contrary to their own guidelines and

violative of the constitutional provisions which are guaranteed in Chapter-III of the Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal

and unfair labour practice which cannot be allowed to be perpetuated. That the discontinuance of the

Workman after 31.3.97 who had served in the bank in any capacity amounts to retrenchment. It could not

have been done without any notice and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the

said action is violative of principles of natural justice guaranteed under Chapter III of the Constitution of

India. This amounts to retrenchment without one month's notice and taken in view of such notice. Thus, the

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9175

main proceedings issued by the Respondent is without jurisdiction and is arbitrary, illegal and therefore

liable to be quashed. That the alleged Memorandum of Understanding dated 27.2.97, Ex.M5 does not own

any legal entity, as the said Memorandum of Understanding is not published anywhere to brought to the

notice of the Workman whose rights are being affected. It is submitted that Management did not adhere to

the procedure envisaged by the Central Government in its' instructions dated 16.8.90 in the year 1995. The

same was not followed in the year 1997 despite there being vacancies. The management has followed the

procedure of calling candidates through Employment exchange instead of giving chance to the empanelled

candidates like the Workman here. It is pertinent to mention here that the Respondent Management sent

letters to the all similarly situated candidates like the Workman in the month of June, 1997, subsequent to

the passing of impugned termination orders. After knowing the facts that the candidates are litigating, the

Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates

like the Workman even in temporary vacancies till they are absorbed permanently in regular vacancies.

Hence, the action of the Respondent Management terminating the services of the Workman by oral order

dated 31.3.97 is unjust, illegal, violative of principles of natural justice and hence, the Management be

directed to reinstate and absorb the Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable

and contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate

staff constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions

imposed by the Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to

engage sub-ordinate staff like messengers, sweepers, sweeper cum water boys, etc., depending on the

availability of work on purely temporary basis for the smooth and uninterrupted functioning of the

branches. It is submitted that the All India State Bank of India Staff Federation which represents majority

of the employees in the State Bank of India comprising about 98% of the work force as its' members

espoused the cause of temporary employees who have put in less than 240 days of temporary service in 12

calendar months in the bank and who were ineligible for any protection under Industrial Disputes Act,

1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule

58 of Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be

herein after referred as first settlement is filed and 4 categories were made as it has already been mentioned

in the claim statement above, it need not be repeated here. In the first settlement, it was agreed that the

temporary employees as categorized would be given a chance for being considered for permanent

appointment in the bank's service against the vacancies which are likely to arise during the period 1987 to

1991. On 16.7.88 second settlement was arrived between the Federation and the Bank whereby it was

agreed to substitute the period of consideration of vacancies as 1987 to 1992 in place of 1987 to 1991 as

contemplated under the first settlement dated 17.11.1987. This is the second settlement. A 3rd settlement

was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to arise

from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued

guidelines to all the public sector banks with regard to recruitment and absorption of temporary employees

in public sector banks. The said guidelines were issued to implement on the lines of approach paper on the

issue provided by a committee constituted in this regard. Government of India guidelines made it clear that

all the public sector banks may follow the provisions laid down in the approach paper. The approach paper

specified that the cases of temporary service in 12 consecutive months and who are entitled to benefit of

Sec.25F of the Industrial Disputes Act, 1947 may be decided by entering into a settlement with the

representative union. In respect of temporary employees who had put in less than 240 days of service in 12

consecutive months or less, a settlement could be avoided and however if the Management so desired they

could enter into a conciliation settlement with the representative union. In para. 6(h) it is mentioned that

only those temporary employees who had put in temporary service of 90 days or more days after 1.1.82

would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

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[PART II—SEC. 3(ii)]

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by

way of a further concession entered into settlements. Even in respect of those who had put in less than 90

days and also the bank went a step further and said those persons who are working after 1975 were also

considered. Hence, there was a genuine effort on the part of the Respondent bank to provide as many as

possible jobs subject to the availability of the vacancies. However, para 6 (k) of the approach paper made it

clear that it is a one time, exercise in full and final, settlement of all the claims and disputes for the past

period, in respect of temporary workmen covered by the settlement. Another settlement was entered on

9.1.91 herein after referred as 4th settlement and the time limit was extended upto 1994 and separate panel

was prepared for temporary employees, casual/daily wagers. It was agreed that while vacancies arising

between 1988 to 1994 in respect of temporary employees and in respect of casual/daily wagers, they can be

considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four

Zonal Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts

of Andhra Pradesh. In terms of the settlement the Management after following the procedure laid down

therein prepared the panels of qualified candidates of temporary employees denoted as 1989 panel and also

panel of casual/daily wagers denoted as 1992 panel for giving a chance for being considered for permanent

absorption. These panels were prepared zone-wise separately for messengers and non-messengers in the

descending order of temporary service put in by the candidates during the stipulated period i.e., 1.7.1975 to

31.7.1988. That the Federation approached the Regional Labour Commissioner(C) for implementation of

bi-partite settlement in respect of absorption of temporary employees. The Regional Labour

Commissioner(C) conducted conciliation proceedings and an agreement was arrived between the

Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of the

conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was

arrived at and an agreement was signed between the Federation and the Management bank on 30.7.1996

under Sec.2 (p) read with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter

called as 5th settlement. That on 27.2.1997 a Memorandum of understanding was also signed by the

federation’s affiliate and the bank Management recording the fact that the exercise of identifying the

messengerial vacancies as on 31.12.1994 has since been completed by Central Office and thereby 403

messengerial vacancies were sanctioned . It was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual

manner and the agreement was reached accordingly. It was agreed between the Federation's affiliate and

the Management bank that in terms of the settlement dated 30.7.1996 both the panels of temporary

employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240

days in a continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a

direction to consider his candidature for absorption in the Management bank under any rule/law except

under the settlement entered into thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five

settlements having got his case considered under provisions of these settlements. All the other provisions

and terms of the settlements are also binding on him/her. The Management bank has not violated any of the

provisions of the terms of the said settlement. That the very preparation and maintenance of panel is in

compliance of the terms agreed under these settlements. These settlements were time bound and they

ceased to exist on 31.3.1997. That the bank has never promised that all the candidates in the panel will be

absorbed. In the advertisement itself it was made clear that candidates will be considered for absorption in

the vacancies that may arise upto 1992. Keeping alive the panels after 31.3.1997 is contrary to the

settlements arrived between the State Bank of India Staff Federation and the Management bank. That the

settlements are binding on the parties. The Workman is also bound under the terms of the said settlement.

The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against

the vacancies likely to arise. The settlements were effected to balance the expectations of the temporary

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9177

employees to be absorbed in permanent service as against the constitutional rights for all eligible persons to

be considered for employment every time a vacancy arises. That the alleged dispute including the demand

for reinstatement has to be decided in this context. It is submitted that the period of panel list got expired

on 31.3.97 and it is an integral term of the settlement and cannot be modified in any proceedings under the

law. These temporary employees who unfortunately could not be accommodated for want of vacancies

have no further rights to be considered for regularization. That the Hon'ble High Court in WP

No.12964/94, held as follows, "It is needless to state that the settlement arrived at between the All India

State Bank of India Staff Federation which, is the majority union and the bank Management is binding on

the Workmen also. It is not at all the case of the Workman that any of the terms of the settlement has been

violated by the bank's Management. If the Workman had worked in the bank on part-time basis before

31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition

is therefore misconceived and not tenable. However, it is open to the Workman to claim any right which

flows from the settlement between the union and the bank Management. As already pointed out that it is

not the grievance of the Workman that some right which has flown from the settlement in favour of the

Workman has been denied by the bank Management. Therefore, I do not find any ground, let alone

substantial ground, to grant the kind of relief sought for by the Workman. Writ Petition fails and is

accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and

allowed to be continued it would result in making the contracts of temporary employment indirectly

permanent through back door entry, which would not only be contrary to the settlements but also to

Articles 14 and 16 of Constitution of India and deprive the chances of original claimants who would Come

through proper recruitment procedure. As their rights have been crystallized by operation of the

settlements. Hence, there is no question of any Legitimate expectation being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High

Court of A.P. and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA

No.86/98 and the batch was filed and the Division Bench set aside the order of the Single Judge. Thereafter

the ex-temporary employees filed Special Leave Petition No.11886-11888 of 1998 before the Hon'ble

Supreme Court of India. The Hon'ble Supreme Court of India also dismissed the SLP. Therefore, reference

to the Judgement of the Learned Single Judge in WP No.9206/97 is of no consequences as the same has

already been set aside. The observations made in the Judgements cannot be relied upon for any purpose

what so ever. The question of operation of Sec.25F would not come into play. Further the issue is covered

by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High Courts. Hence, the

reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in

evidence which has been exhibited as Ex.W1 to W4. Further, the Workman has filed photocopies of

documents in support of his claim which are discussed as under:-

Ex.W1 is the study record sheet. Ex.W2 is the service certificate. Ex.W3 is the service certificate. Ex.W4 is

the community certificate.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has

exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the

Settlement dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the

conciliation proceedings dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the

Memorandum of Understanding dt. 27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel.

Ex.M9 is the Particulars of 1989 Non-Messengerial Panel. Ex.M10 is the Particulars of 1992 General

Attendant Panel. Ex.M11 is the Judgment of Hon’ble High Court of A.P. in Writ Appeal No.86/98

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[PART II—SEC. 3(ii)]

dt.1.5.1998. Ex.M12 is the Judgment of Hon’ble Supreme Court of India in SLP No. 11886-11888 of 1998

dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of

various judgements of Hon’ble Supreme Court as well as Hon’ble High Court, which we will discuss at

appropriate place in this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel

for both the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement

dated 27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered

into between State Bank of India and All India State Bank of India Staff Federation and

also Memorandum of Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Pokuru branch, in terminating the services of

Workman Sri Yedluri Musaliah, a Messenger with effect from 31.7.98 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of

Respondent management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were

executed between the State Bank of India and All India State Bank of India Staff Federation under section

2(p) and 18 (1) of I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a

written agreement between the employer and workmen arrived at otherwise than in the course of

conciliation proceeding where such agreement has been signed by the parties thereto in such manner as

may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the

appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the

course of conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in

the aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman

has argued that the Workman after going through the selection procedure has successfully been listed in the

panel for appointment on the permanent basis in the Respondent management and the empanelled list has

to be valid till last person in the empanelled list is appointed on permanent basis. But the impugned order

dated 25.3.97, 27.3.97 and 31.3.97, has been issued by Respondent management thereby the services of the

Workman has been terminated and the said order is not in consonance of the terms of the agreement

entered into between the parties. Further, Workman submits that the Respondent in the 5th settlement has

mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and that is not binding upon the

Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the aforesaid 5th

settlement, is arbitrary and illegal.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9179

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager,

SBI Zonal Office has issued the letter to all the branches with regard to the subject not to make any

temporary appointments in the Branch in messengerial category from 31.3.1997. The extract of the said

letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels

of temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has

been decided by Central Office not to make any temporary appointments in messengerial category from

31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide

letter dated 25.3.1997 has issued direction to all its branches not to make any temporary appointments in

messengerial category from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997

as per terms of settlements entered into by both parties. Further, the contents of the subsequent letter dated

27.3.1997 issued by Respondent Management is also direction to Branch Manager, State Bank of India not

to make any temporary messengerial category appointment with effect from 31.3.1997 and it has also been

communicated to all concerned that the panels of temporary employees and daily wagers maintained by

Zonal offices stand lapsed from 31.1.1997. Further, office order dated 31.3.1997 has been issued by

Respondent management that goes to reveal that the said office order has been issued to this effect that,

“Consequent on absorption of temporary employees in permanent cadre, it has been decided by the

competent authority that no one onwards, no further daily labour or temporary employees/appointments

should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the aforesaid orders

that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers

and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the

5th settlement which has been arrived at between the parties on dated 30.7.1996 with the consensus of both

the parties. Therefore, Workman can not challenge the terms and conditions contained in settlement dated

30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India and State Bank of

India Staff Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated

30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh.....

1990 II LLJ 510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the

Industrial Disputes Act on 25th April 1983 under which the age of superannuation of the workmen was

fixed at 55 years. The settlement was to be in force upto 30th June 1986 and the next settlement,

incorporating practically the same terms, was again entered into on 4th February 1987 under Section

18(1) of the Industrial Disputes Act. There is no dispute that these settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited

jurisdiction. It can only decide in the first appeal whether a termination by the management is valid or not

and is within the parameters of Section 40 of the Act. The said Authority, in our view, has absolutely no

jurisdiction to decide whether a settlement entered into under Section 18(1) of the Industrial Disputes Act

between the representatives of the Workmen and of the Management, is vitiated by undue influence or

misrepresentation or coercion on the part of the Management. The Authority, namely, the Assistant

Commissioner of Labour, was never intended by the A.P. Legislature to have jurisdiction to go into the

question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes Act by an

Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section

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[PART II—SEC. 3(ii)]

41(1) of the A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of

any such settlements. If parties to a settlement have a grievance about the validity of a settlement, it is for

them to agitate the matter before the appropriate forum and they cannot ask an Authority constituted

under Section 41(1) of the A.P. Shops and Establishments Act, 1966 with limited jurisdiction, to go into any

such question and, that too, incidentally while deciding whether retirement as per the contract of

employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or

misrepresentation or coercion on the part of the management. If the Workman feeling aggrieved by any

terms of settlement/ agreement on the aforementioned grounds then he can challenge of settlement before a

competent authority under the Act, 1947. But here in the instant matter it is not a case of Workman that

aforementioned settlement has been entered into between the parties on the ground of undue influence or

misrepresentation or coercion. Therefore, Workman is barred to raise any objection in respect of fixing the

date of lapse of both panels on 31.3.1997 as agreed between both the parties and Workman can not

challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR

322, Hon’ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call

for a finding at all in view of 1his Court's order. As observed above that was not a correct assumption. On

the other hand, we feel that this view of the Tribunal has led it to approach the matter in an entirely

erroneous manner. The Tribunal is, rightly enough, conscious that under section 18 (1) of the Industrial

Disputes Act the settlement was binding on the company and the members of the 3rd Respondent union.

Even so, the Tribunal devoted nearly half of its order in scanning the evidence given by the company and

Respondent No. 3 to find out whether the terms of the settlement had been explained by the President of the

union to the workmen or not and whether the workers voluntarily accepted the settlement knowing all the

"consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the

picture. It is not necessary that each individual worker should know the implications of the settlement since

a recognised union, which is expected to protect the legitimate interests of labour, enters into a settlement

in the best interests of labour. This would be the normal rule. We cannot altogether rule out exceptional

cases where there may be allegations of mala fides, fraud or even corruption or other induce- ments.

Nothing of that kind has been suggested against the President of the 3rd Respondent in this case. That

being the position, prima facie, this is a settlement in the course of collective bargaining and, therefore, is

entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and

others bad. Unless it can be demonstrated that the objectionable portion is such that it completely

outweighs all the other advantages gained the Court will be slow to hold a settle- ment as unfair and

unjust. The settlement has to be accepted or rejected as a whole and we are unable to reject it as a whole

as unfair or unjust. Even before this Court the 3rd Respondent representing admittedly the large majority

of the workmen has stood by this settlement and that is a strong factor which it is difficult to ignore. As

stated elsewhere in the judgment, we cannot also be oblivious of the fact that all workmen of the company

have accepted the settlement. Besides, the period of settlement has since expired and we are informed that

the employer and the 3rd Respondent are negotiating another settlement with further improvements. These

factors, apart from what has been stated above, and the need for industrial peace and harmony when a

union backed by a large majority of workmen has accepted a settlement in the course of collective

[भाग II—खण् ि 3(ii)]

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bargaining have impelled us not to interfere with this settlement. That being the position, we unhold the

settlement as fair and just and order that the award of the Tribunal shall be substituted by the settlement

dated October 18, 1973. The said settlement shall be the substituted award. The appeal is disposed of

accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon’ble Apex Court as discussed above, the contention of

the Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the

permanent post vide 5th Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized

union of Workmen has negotiated with the Respondent Bank Management representing large number of

Workmen and the Workman as individual do not come into picture. Workman in the instant case has work

as temporary Workmen in the Respondent Branch and in response of Notification he had applied for

inclusion of his name in the panel and he was selected for inclusion his name in the panel list to be utilized

for absorption of such Workman to permanent post in order of their seniority in the list. The Settlement

dated 30.7.1996 between State Bank of India and All India State Bank of India Staff Federation under

Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position and it is

agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon’ble Apex Court, in the instant case,

Agreement dated 30.7.1996 was entered into between both the parties in respect of lapsing of the both the

panels on 31.3.1997 and absorption of the Workmen from panel list was subject to availability of vacancy

of post likely to arise upto 31.3.1997, have a binding force on Workman as well as management of State

Bank of India in view of provision contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated

his services by oral order on 31.7.98 without issuing any notice or paying any salary or compensation in

lieu thereof. Therefore, the termination order of the Workman from service is in violation of provision

contained Under Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in

any preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context,

the Workman has examined himself as WW1 who has reiterated that Workman has been terminated from

service by Respondent on 31.7.98 without notice of salary or compensation in lieu thereof. Before

examining the claim of the Workman on merit it would be apposite to reproduce the provision contained

under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been

in continuous service for not less than one year under an employer shall be retrenched by that employer

until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and

the period of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period

of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to

fifteen days' average pay for every completed year of continuous service] or any part thereof in excess of

six months; and

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[PART II—SEC. 3(ii)]

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be

specified by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in

uninterrupted service, including service which may be interrupted on account of sickness or authorized

leave or an accident or a strike which is not illegal, or a lock- out or a cessation of work which is not due

to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year

or six months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date

with reference to which calculation is to be made, has actually worked under the employer for not less

than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from

the date of termination, the initial burden of proof lies upon the Workman and the Workman has to prove

this factum by adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the

reference of decisions of Hon’ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This

claim was denied by the appellant. It was for the claimant to lead evidence to show that he had worked for

240 days in the year preceding the date of his termination. He has filed an affidavit. It is statement which is

in his favor and that cannot be regarded as sufficient evidence for any Court or Tribunal to come to the

conclusion that 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 period was not sufficient for the Labour Court held that the Workman had worked for 240 days

as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the

Workman to show that he was working for more than 240 days in the preceding one year prior to his

alleged retrenchment." In M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again

reiterated in paragraph 11 as follows: "The above burden having not been discharged and the Labour

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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the

Apex Court held that "the initial burden of proof was on the Workman to show that he had completed 240

days of service."

[भाग II—खण् ि 3(ii)]

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Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid

down the principle that how to count 240 days of service within one year it is held: "Clause (2)(a)

provides for a fiction to treat a Workman in continuous service for a period of one year despite the fact

that he has not rendered uninterrupted service for a period of one year but he has rendered period of 240

days during the period of 12 calendar service for months counting backwards and just preceding the

relevant date being the date of retrenchment. In other words, in order to invoke the fiction enacted in

clause (2)(a) it is necessary to determine first the relevant date, ie the date of termination of service which

is complained of as retrenchment. After that date is ascertained. move backward to a period of 12 months

just preceding the date of retrenchment and then ascertain whether within the period of 12 months, the

Workman has rendered service for a period of 240 days. If these three facts are affirmatively answered in

favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility

qualification enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the

legislative exposition of which note must be taken. In fact, we need not further dilate upon this aspect

because in Surendra Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New

Delhi and Anr., Chinnappa Reddy. J., after noticing the amendment and referring to the decision in Sur

Enamel and Stamping Works (P) Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman

who has actually worked under the employer for not less than 240 days during a period of twelve months

shall be deemed to have been in continuous service for a period of one year whether or not he has in fact

been in such continuous service for a period of one year. It is enough that he has worked for 240 days in a

period of 12 months, it is not necessary that he should have been in the service of the employer for one

whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on

principle and on precedent it must be held that section 25B(2) comprehends a situation where a Workman

is not in employment for a period of 12 calendar months, but has rendered service for a period of 240 days

within the period of 12 calendar months commencing and counting backwards from the relevant date, i.e.

the date of retrenchment. If he has, he would be deemed to be in continuous service for a period of one

year for the purpose of section 25B and Chapter VA.”

Thus, in view of the law laid down by the Hon’ble Apex Court as discussed above the initial burden of

proof lies upon the Workman to show that he has completed 240 days of the service with the Respondent

just preceding from the date of his termination. Further, in respect of the employment of calculating the

240 days service provision contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon’ble

Apex Court, we have to examine whether the Workman has discharged his initial burden of proof in

respect of his claim of 240 days continuous service in a calendar year just preceding from the date of his

termination i.e., 31.3.1997.

In this context, WW1 in his cross examination has stated that,

“ My service was for total no. of 852 days spread with gaps from time to time for the period from 1975 to

1997…..

I was not sponsored by any employment exchange. ….. It is not true to suggest that I never worked for 240

days in a year continuously and I was casual worker I am not entitled for any relief.”

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[PART II—SEC. 3(ii)]

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously

in any 12 months of a calendar year just preceding from the date of his termination in the Respondent bank.

Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked

for 240 days continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997.

Thus, the claim of the Workman that he has been terminated by oral order without issuing notice or

payment in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not

tenable. However the documents filed by the Workman in support of his claim, number of days worked

with the Respondent goes to reveal that the Workman had worked intermittently as daily wager depending

upon availability of work in branch. Workman did not file any document of appointment letter or salary

slips in support of his claim for appointment as a non-messenger in the Respondent branch on

temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he

was terminated from services is not correct. As the vacancies were filled up on regular basis in order of

their respective seniority the non-engagement of the Workman does not amount to termination. Further,

Respondent contended that no law provide that even though there is no work temporary employee should

be continued in the bank work as the very engagement of Workman was subject to availability of work.

Therefore, the allegation that the bank has indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force

in the argument advanced by the Respondent that in the instant matter, Workman was not terminated from

service by order dated 31.7.98 rather he was disengaged in view of the non-availability of the work in the

branch. Further, there was direction issued by the Head Office of the Respondent authority not to engage

any daily wager Workman/ temporary Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman

does not amount to termination. Moreover, the Workman failed to prove his claim that he was terminated

in contravention of provision of Sec.25F of the I.D. Act, 1947 as he failed to establish his plea by any oral

or documentary evidence that he had worked for 240 days continuously in a twelve months of calendar

year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State

Bank of India has issued the letter to Zonal Office with direction to all its branches to this effect that they

have been advised by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of

1989 and daily wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office

not to make any temporary appointments in messengerial cadre from 31.3.1997, therefore it was directed to

issue suitable instructions not to make temporary appointments from 31.3.1997. There is no mention in this

order that the Workman herein has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial

network in respect of the non-appointment of temporary employees in subordinate cadre and it has directed

not to make any temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has

directed to ensure that no temporary/casual/daily basis appointment of the petty cash. Further, it is directed

to all Branch Managers that any deviation in this regard will be viewed seriously. Thus, these circulars do

not reflect that the Workman has been terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank

by DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman

that he has been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the

service by the Respondent is not acceptable. The evidence adduced by the Workman clearly goes to reveal

that he had worked as a daily wager for which he has been paid wages according to number of working

[भाग II—खण् ि 3(ii)]

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days. As there was an order for prohibition for engaging temporary workmen, in the bank, therefore,

Workman could not be engaged by the Respondent for work from 31.3.1997 and there after. It is settled

law that the daily wagers are engaged by the employer depending upon the availability of work and as the

work was not available the Workman was not engaged further by the Respondent management. Therefore,

the Workman on the ground of number of days he had worked in the Respondent bank cannot claim any

right to reinstate him into the employment. As the Workman failed to prove the mandatory condition of

240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the disengagement

of Workman from work can not be termed in contravention of provision contained under Sec.25F and 25 B

of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to

implement the selected panels during its valid tenure. The management adopted the back door methods

contrary to the settlements and filled up the vacancies. The same is evident from the proceedings dated

18.11.1993 a copy of the same is filed in the material papers and the same may be read as part of the claim

statement. Further, it is submitted that management has to adhere the procedure issued by the Central

Government, the instructions dated 16.8.1990 in the year 1995, but same was not followed in the year 1997

despite there being vacancies. The management has followed the procedure of calling candidates through

employment exchange instead of giving chance to the empanelled candidates like the Workman herein.

The management sent call letters to the similarly situated candidates like the Workman in the month of

June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are

litigating the issue by way of dispute, the management has refused to engage those candidates, the copies

of call letters issued are filed herein along with claim petition. The Workman herein reiterates that the

panels are meant for absorption but not for termination. In view of the same a duty is cast upon the

Respondent management to engage the empanelled candidates like the Workman herein even in temporary

vacancies till they are absorbed permanently in regular vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of

temporary employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings

and agreement was arrived at between the Federation and the Management bank. It is submitted that it was

agreed between the Federation and the Management that both the panels of temporary employees and daily

wagers /casual labour would be kept alive upto March, 1997 and the vacancies as agreed to under the afore

set out settlements will be filled from both the lists concurrently. A copy of the conciliation proceedings

dated 9.6.1995 signed by the parties to the dispute is filed as a material paper. Further, it is submitted that

the settlement was arrived at and an agreement was signed between the Federation and the Management

bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the Industrial Disputes (Central) Rules

1957 which is binding on the parties. A copy of this agreement which hereinafter may be referred to as 5th

settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996 whereunder the

earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it was

agreed to, by the Federation and the Management bank that both the panels of temporary employees and

daily wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies

existing/arrived at as on 31.12.1994 as per the norms agreed to between the bank and Federation and that

thereafter the said panels would lapse. It was also agreed that within the framework of the above

settlements the modalities about drawing names from either the panel of temporary employees or the panel

of daily wagers and casual labour would be decided administratively on circle to circle basis depending

upon the local requirements in consultation with the Federation’s affiliate by the Circle management. It

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[PART II—SEC. 3(ii)]

was further agreed that all messenger real vacancies/positions in the subordinate cadre including part-time

attendants specifically provided as leave reserve will be filled by the end of 31.3.1997. Further, Respondent

contended that on 27.2.1997 a memorandum of understanding was also signed between the Federation’s

affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial

vacancies were sanctioned to the circle of the Management bank and it was agreed that these vacancies

may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached upon. Further, it was agreed

between the Federations affiliate and the management bank that in terms of the settlement dated 30.7.1996

both the panels of temporary employees and daily wagers /casual employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is

exhausted by appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the

date fixed for the lapse of panel. It is undisputed that the date of lapse of empanelled list of Workmen has

been fixed to 31.3.1997 as mentioned in the settlement dated 30.7.1996, and agreed between the parties. It

is settled law that and once the life of panel list lapses on the date as agreed between the parties it cannot be

extended beyond that date. In the instant case the panel list of the workmen was valid upto 31.3.1997 in

view of the terms and conditions enumerated in the 5th Settlement entered into between the parties. As the

lapse of panel i.e., 31.3.1997 has been agreed by State Bank of India and State Bank of India Staff

Federation through 5th Settlement, the Workman is not competent to challenge the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate

Bank and Ors vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have

held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work

as temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government

of India in respect of such temporary appointments, the Calcutta regional office of the appellant Bank

issued a circular to all of its branches on 14.8.1982, instructing all the branches under it to discontinue the

old practice from 1.6.1982 and appoint only empanelled candidates. The regional office was to prepare a

panel of eligible candidates, after calling names from the local/district employment exchange, and split it

up branch-wise. Following that new procedure yearly panels were prepared thereafter. Names of the

Respondents were for the first time included in the panel prepared for the period 7.2.1987 to 6.2.1988. By

its letter dated 7.2.1987 the Bank had informed the Respondents that the panel was valid for one year only

and that inclusion of their names in the panel was not to confer on them any right to seek permanent

appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get

any right, because of inclusion of their names in the said panel, for permanent absorption in the service of

the Bank. Whatever conditional right they had came to an end with the expiry of the panel. The claim of the

Respondents, as contained in the writ petition was thus misconceived and therefore the learned single

Judge and the Division Bench, when it first decided the appeal, were right in dismissing the writ petition

and the appeal respectively.”

Thus, in view of the above law laid down by the Hon’ble Apex Court and in view of the terms and

conditions of the 5th Settlement the contention of the Workman that empanelled list should continue even

after 31.3.1997 till the last Workman in the panel is absorbed is not tenable. The contention of the

Workman is baseless in view of recital in the settlement. Therefore, in view of the fore gone discussion and

finding given at Point No. I regarding binding nature of Settlements and terms and conditions enumerated

[भाग II—खण् ि 3(ii)]

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therein, in view of the provision contained u/s.18(1) of the I.D. Act, 1947, I am of the considered view that

life of panels lapsed on 31.3.1997 in view of terms of settlement dated 30.7.1996 and plea of Workman

that the panel shall continue even after 31.3.1997 till last man absorbed has no legal force and same

is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of

India and State Bank of India Staff Federation and in that settlement it was agreed that both the panels of

temporary employees and daily wagers/ casual employees will be used for filling vacancies existing as on

31.12.1994 as per the norms agreed between the bank and the Federation. These empanelled workmen

were to be given a chance for permanent appointment in the bank against vacancies arising up to December

1994 whereas the daily wagers/ casual employees were to be considered against the vacancies arise from

January 1995 to December 1996, whereby the said panel would lapse. It was agreed that the vacancies falls

upto 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus, the claim of the

Workman to the post of permanent non-messenger in the Respondent management was subject to the

availability of the sanctioned post and vacancies arising upto 31.3.1997. The workmen given chance to the

permanent post were seniors in number of working days in panel list and Workman herein was junior to

those workmen. Therefore, Workman could not be given absorption to permanent post being junior to other

workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence

that, “The Petitioner has not completed 240 days of service in a calendar year.” Although this witness was

cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the

claim of the Petitioner that he has been removed from service by the management illegally is untenable.

Further, witness MW1 in his chief statement has stated that, “The temporary messengers and Non-

messengers were engaged by the bank in leave vacancies and for administrative exigencies. The Petitioner

did not work continuously for 240 days in any year or over a period of 36 months.” This statement of

witness MW1 remained uncontroverted as the Petitioner did not cross examine the witness MW1 on this

point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil eligibility criteria

of working days as required for regularisation. Therefore, he was not given regularisation in the

employment of the Respondent. Therefore, in view of the statement of MW1, the claim of the Petitioner

that he was refused regularization by the Respondent management illegally, is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the

employment of the Respondent banks (panels of temporary employees and daily wagers) has been lapsed

on 31.3.1997 in contravention of terms of settlement as the object of preparing the entire empanelment of

temporary and daily wagers was to provide them permanent employment and till the both the panel lists

exhausted the panel list cannot be lapsed on 31.3.1997 and the date of lapsing of the panel on 31.3.1997

has been fixed by the Respondent arbitrarily without any authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated

30.7.1996 was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial

Dispute (Central) Rules 1957. This settlement has been entered into by the competent parties and in this

settlement parties thereto agreed that both the panels of temporary employees and daily wagers/casual

employees will lapse on 31.3.1997. Thus the date of lapse of panel was fixed by both the parties with

consensus under the settlement dated 30.7.1996 and same is binding upon the Workman under the

provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding force of the settlement dated

17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at finding in Point

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[PART II—SEC. 3(ii)]

No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of

panel i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of

Workman for his absorption to the permanent post it is settled law that the Workman can not claim his

regularization to permanent post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon’ble Supreme Court in the case of Oil and

Natural Gas Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant

therein Hon’ble Supreme Court have has laid down principle regarding regularization of the Workman on

permanent posts. Hon’ble Supreme Court have laid down the prepositions of regularization of the workmen

to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction

to order regularisation, where such a direction would in the context of public employment offend the

provisions contained in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the

status of permanency continues to exist in circumstances where the employer has indulged in an unfair

labour practice by not filling up permanent posts even though such posts are available and by continuing

to employ workmen as temporary or daily wage employees despite their performing the same work as

regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no

posts are available, a direction to grant regularisation would be impermissible merely on the basis of the

number of years of service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it

would be open to workmen who have been deprived of the same benefit at par with the workmen who have

been regularised to make a complaint before the Labour or Industrial Court, since the deprivation of the

benefit would amount to a violation of Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth

Schedule of the ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and

continuing them for years, with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon’ble Supreme Court as discussed above, in the instant

matter the Workman utterly failed to prove his claim by adducing any documentary or oral evidence that

the employer has indulged in unfair labour practice by not filling the permanent posts even though such

posts are available and by continuing to employ workmen as temporary or daily wage employees despite

their performance was the same work, as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up

from the panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled.

Further, it is contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997,

hence, there is no occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed

to prove contrary by any evidence to the aforesaid contention of the Respondent that the vacancies were

existing as on 31.3.1997 and the workman was not given absorption to the permanent post in order of his

seniority. It is settled law that the power to create permanent or sanctioned post lies outside the judicial

domain and where no posts are available, a direction to grant regularization would be impermissible merely

on the basis of the number of years of service. Therefore, the claim of the workman on this ground also not

acceptable.

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9189

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the

permanent posts has already been lapsed on 31.3.1997 and the vacancies existing and arising upto

31.12.1994 and upto 31.3.1997 as settlement dated 30.7.1996 has been filled up from the panel by

appointing the workmen as per seniority in the panel list. Workman witness WW1 in his cross examination

has himself admitted this fact that, some of the temporary employees whose names were included in the

panel were given regular appointment in the bank in order of their seniority in the panel. The Workman

failed to show that there was any breach of terms of settlement has been committed by the Respondent in

appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended

beyond 31.3.1997, by any further settlement hence, the panel list in which name of the Workman was

included got expired on 31.3.1997. It is not the case of the Workman that Respondent has regularized

similarly situated workmen either in the scheme or otherwise and the Workman has been deprived of same

benefit on par with those workmen or the vacancies remained unfilled on the date of lapse of panels i.e.,

31.3.1997, Industrial Tribunal has no jurisdiction to extend the date of lapse of panel i.e., 31.3.1997. This

Tribunal can not order for regularization of workmen to the permanent post in contravention of the

provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007

date of judgement 13.12.2007, Hon’ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are

governed by a statute and statutory rules. No appointment can be made by a Local Authority without

following the provisions of the recruitment rules. Any appointment made in violation of the said rules as

also the constitutional scheme of equality as contained in Articles 14 and 16 of the Constitution of India

would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was

permissible, but by reason thereof an employee cannot claim any right to be permanently absorbed in

service or made permanent in absence of any statute or statutory rules. Merely because an employee has

completed 240 days of work in a year preceding the date of retrenchment, the same would not mean that

his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon’ble Apex Court, the claim of the Workman for

absorption merely on the basis of number of day of work in the Respondent bank Branch is not acceptable.

As regard plea of the Workman that the Workman should have been given employment even after

31.3.1997 as temporary Workman, it is the discretion of Respondent to engage the Workman depending

upon availability of work and this Tribunal can not direct the Respondent to engage the Workman in the

absent of such rule/scheme.

46.

In view of principle laid down by Hon’ble Apex Court as discussed above, in the instant matter

Workman utterly failed to establish the fact of rendering continuous service for a period of 240 days of

service within a period of 12 calendar months commencing and coming backward from relevant date i.e.,

the date of retrenchment, if has he would be denied to be in continuous service for a period of one year.

Therefore, the provision contained under Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon’ble High Court and Hon'ble Supreme

Court and few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon’ble Supreme

Court have held:-

9190

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to

conform to Article 14 of the Constitution of which non-arbitrariness is a significant facet. There is no

unfettered discretion in public law: A public authority possesses powers only to use them for public good.

This impose the duty to act fairly and to adopt a procedure which is `fairplay in action'. Due observance of

this obligation as a part of good administration raises a reasonable or legitimate expectation in every

citizen to be treated fairly in his interaction with the State and its instrumentalities, with this element

forming a necessary component of the decision making process in all State actions. To satisfy this

requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and give due

weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or

else that unfairness in the exercise of the power may amount to an abuse or excess of power apart from

affecting the bona fides of the decision in a given case. The decision so made would be exposed to

challenge on the ground of arbitrariness. Rule of law does not completely eliminate discretion in the

exercise of power, as it is unrealistic, but providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP

No.193/1997, therein Hon’ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that

it was a permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his

services were not liable to be terminated and he was to be regularised into service on permanent basis.

Shastry award warrants that no temporary appointment can be made to a permanent post. But the matter is

now covered by two division bench judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in

W.A. No.270 of 1982. The ratio decided in the two judgements is to the effect that there cannot be any

mandate to appoint employees on permanent basis when the requirement was for appointment on

temporary basis. But it is held in the said judgements that when a temporary appointee is ousted from

service and not for misconduct and, if again temporary appointment is to be made, then, the case of such

temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein

Hon’ble Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities

must consider his case for regularization provided he is eligible and qualified according to the rules and

his service record is satisfactory and his appointment does not run counter to the reservation policy of

the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to

instant case of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1

in chief examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were

entered into between the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994

for those temporary employees who has worked on scale wages. Further, MW1 states that two different

panels for messengers and non-messengers as per the eligibility criteria prescribed by the bank. There are

four modules in Andhra Pradesh and they are Hyderabad, Tirupathi, Vijayawada and Visakhapatnam.

MW1 states that the temporary employees so empanelled were given permanent absorption depending

upon the vacancies so arise strictly in terms of the settlement. MW1 states that on 9.6.1995 conciliation

proceeding was held before the RLC(C), Hyderabad and in said proceedings it was decided that the panels

will be kept live up to 31.3.1997 and vacancies will be filled from both the lists concurrently. A copy of the

said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another settlement was

[भाग II—खण् ि 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9191

entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies arising

up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel

so prepared were to be considered against vacancies arising from January 1995 to December 1996,

thereafter the said panels lapse. MW1 states that it was also agreed that all the non- messenger positions in

subordinate cadre including part time attendants specially provided as leave reserve will be filled before

31.3.1997 and as regards to non-messengerial positions it is agreed that all such posts sanctioned and fallen

vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus in both the cases

empanelled list were lapsed on 31.3.1997. Ex.M6 is the copy of the settlement dated 30.7.1996. Further,

witness states that on 27.2.1997 a memorandum of understanding was reached between the SBI and SBI

Staff Federation providing that both the panels above mentioned will lapse on 31.3.1997. Ex.M7 is the

copy of the memorandum of understanding and Ex.M8 is the copy of the statements giving the particulars

of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non- messenger panel, Ex.M10

is the copy of statement of 1992 panel. Further, witness states that petitioner was included in the 1989

panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per

seniority, number of days of temporary service put in by them in the bank in the given period. Further,

MW1 states petitioner was not sponsored by any employment exchange he did not undergo the regular

process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary

employees were terminated from service by the bank. Further, MW1 states that the vacancies were filled

up on regular basis with the temporary employees from the panels and these panels were expired in terms

of the settlements so reached and there were no vacancies to absorb such employees. Thus, witness MW1

has proved the documents Ex.M1 to Ex.M12 and also contentions made in the counter. However, MW1

was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross examination so as

to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on 31.3.1997

and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels

were expired in terms of the settlement send absorptions to the extent of the available vacancies were

made. There was no termination of any temporary messenger as such but their services were not utilized

after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the

aforesaid testimony of the MW1 in re-examination in the absence of cross examination remained

uncontraverted, the claim of the Workman that he was entitled for absorption in permanent post in the

branch of Respondent Management on the basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman

is not entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating

the services of Sri Yedluri Musaliah, Ex. Messenger by way of oral orders w.e.f. 31.7.98 is justified.

Hence, the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman

sans merit, hence, dismissed.

9192

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected

and signed by me on this the 16th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Yedluri Musaliah

MW1: Sri I.S. Appa Rao

Documents marked for the Petitioner

Ex.W1:

Photocopy of study record sheet

Ex.W2:

Photocopy of service certificate

Ex.W3:

Photocopy of service certificate

Ex.W4:

Photocopy of community certificate

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C)

dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff

Federation dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon’ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9193

नई ददल्ली, 6 अगस् त, 2026

का.आ. 1739.—vkS?kksfxd fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa

dsUnzh; ljdkj स्टेट बैंक ऑफ़ इंडिया ds izca/kr=] lac) fu;kstdks vkSj muds कर्मकार श्री नागभूषण सरमा

ds chp vuqca/k esa fufnZ’V vkS?kksfxd fookn esa dsUnzh; ljdkj vkS?kksfxd vf/kdj.k@Je U;k;ky;]

हैदराबाद ds

(41/2003) izdkf”kr djrh gSA

[la

-12025/01/2026-

(ch-I)-175]

सलोनी, उप ननदेशक

New Delhi, the 6th August, 2026

S.O. 1739.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 41/2003) of the Central Government Industrial Tribunal-cum-

Labour Court Hyderabad as shown in the Annexure, in the industrial dispute between the management of State

Bank of India and their workman Sri M. Nagabhushana Sarma.

[No. L-12025/01/2026-IR(B-I)-175]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 16th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 41/2003

[Old ID No. 124/2000 of Labour Court, Guntur]

Between:

Sri M. Nagabhushana Sarma,

S/o Viswanadham,

Cumbum,

Prakasam distt.

… Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Branch Manager,

State Bank of India,

Cumbum branch.

4.

The Zonal Manager,

State Bank of India,

Zonal office,

Tirupathi.

…..Respondents

Appearances:

For the Petitioner :

M/s. S. Prasada Rao, Advocates

Sri Macherla Rangaiah, Advocate

9194

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

For the Respondent: Sri K. Rathanga Pani Reddy, Advocate

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri M. Nagabhushana Sarma who worked as Messenger (who will be referred to as the workman) has filed

this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India

seeking for reinstatement into service as Messenger duly granting all the consequential benefits such as continuity of

service, back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit. Earlier

Petitioner has filed this dispute before the Labour Court, Guntur for adjudication and later the same has been

transferred to this Tribunal bearing ID No. 124/2000, as per orders of Central Government vide Lr.No.H-

11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in this Tribunal as LC No. 41/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‟ble

High Court of Andhra Pradesh and Hon‟ble High Court vide its‟ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon‟ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon‟ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‟ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon‟ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon‟ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9195

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1.1.86 to 1994 and has

rendered unblemished service spreading over a period of about 12 years. The Respondent has terminated services of

Workman by oral orders with effect from 1994. Further, it is submitted that the management of Respondent bank

decided to give a chance to temporarily employed personnel “found suitable for permanent appointment” by wait-

listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. “there will be no

temporary appointments in the subordinate cadre”, except on a restrictive basis in the specified category, “from

amongst empanelled candidates as per existing guidelines of the bank”. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, “to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, “will be given another chance to appear for interview”.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it‟s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‟ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‟ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‟ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

9196

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon‟ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9197

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 31.3.1997 which is arbitrary, discriminatory, contrary

to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

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[PART II—SEC. 3(ii)]

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation‟s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

[भाग II—खण् ड 3(ii)]

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9199

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W5. Further, the Workman has filed photocopies of documents in support of

his claim which are discussed as under:-

Ex.W1 is the service certificate. Ex.W2 is the service certificate. Ex.W3 is the service certificate. Ex.W4 is the

transfer certificate. Ex.W5 is the interview call letter.

21.

On the other hand, Respondent has examined witness MW1 Sri I.S. Appa Rao and this witness has exhibited

12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon‟ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon‟ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon‟ble Supreme Court as well as Hon‟ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, in terminating the services of Workman Sri M.

Nagabhushana Sarma, a Messenger with effect from 1994 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

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[PART II—SEC. 3(ii)]

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 31.3.1997. The extract of the said letter is given below:-

“We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 31.3.1997.”

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 31.3.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 31.3.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, “Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.” Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 31.3.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon’ble Court have held:-

“4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

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entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon‟ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon‟ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

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[PART II—SEC. 3(ii)]

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon‟ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1994without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

1994without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on merit

it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon‟ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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)

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

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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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..”

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon‟ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon‟ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997.

In this context, WW1 in his cross examination has stated that,

“ My service was for total no. of 403 days spread over with gaps from time to time during the period from 1980-

94.…..

I was not sponsored by employment exchange. ….. It is not true to suggest that I never worked for 240 days in a year

continuously and I was casual worker I am not entitled for any relief.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of the

Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

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[PART II—SEC. 3(ii)]

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1994rather he was disengaged in view of the non-availability of the work in the branch. Further, there was

direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/ temporary

Worker w.e.f. 31.3.1997. Thus, such disengagement of Workman does not amount to termination. Moreover, the

Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of the I.D. Act,

1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240 days

continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 31.3.1997, therefore it was directed to issue suitable instructions not to

make temporary appointments from 31.3.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 31.3.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9205

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‟s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation‟s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge

the same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon’ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

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[PART II—SEC. 3(ii)]

Thus, in view of the above law laid down by the Hon‟ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, “The

Petitioner has not completed 240 days of service in a calendar year.” Although this witness was cross examined by

the Petitioner but the above statement of the management witness in chief remained uncontroverted, as the witness

MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the Petitioner that he has been

removed from service by the management illegally is untenable. Further, witness MW1 in his chief statement has

stated that, “The temporary messengers and Non-messengers were engaged by the bank in leave vacancies and for

administrative exigencies. The Petitioner did not work continuously for 240 days in any year or over a period of 36

months.” This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the

witness MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil

eligibility criteria of working days as required for regularisation. Therefore, he was not given regularisation in the

employment of the Respondent. Therefore, in view of the statement of MW1, the claim of the Petitioner that he was

refused regularization by the Respondent management illegally, is untenable.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon‟ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‟ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‟ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

“(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

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filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon‟ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon‟ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon‟ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

9208

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

46.

In view of principle laid down by Hon‟ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon‟ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‟ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon‟ble High Court have held,

“Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‟ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on 31.3.1997.

Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a memorandum of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9209

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the copy of the

statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of 1989 non-

messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner was included

in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he could not be

given permanent employment in the bank as per the agreements. All the appointments were made strictly in

accordance with the settlements reached from time to time between SBI and SBI staff federation and as per seniority,

number of days of temporary service put in by them in the bank in the given period. Further, MW1 states petitioner

was not sponsored by any employment exchange he did not undergo the regular process of selection required for

appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his entire temporary

service in the bank. The petitioner and other temporary employees were terminated from service by the bank.

Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from the panels

and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb such

employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri M. Nagabhushana Sarma, Ex. Messenger by way of oral orders w.e.f. 1994 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 16th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri M. Nagabhushana Sarma

MW1: Sri I.S. Appa Rao

Documents marked for the Petitioner

Ex.W1:

Photocopy of service certificate

Ex.W2:

Photocopy of service certificate

Ex.W3:

Photocopy of service certificate

Ex.W4:

Photocopy of transfer certificate

9210

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Ex.W5:

Photocopy of interview call letter

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon‟ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1740.—औद्योनगक नववाद अनधननयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

पोस्ट ग्रेजुएट इंस्टीट्यूट ऑफ़ मेनडकल एजुकेशन एंड ररसर्च (पीजीआईएमईआर); मेससच ओम नसक्योररटी एंड क्लीननग

सर्ववसेज़ के प्रबंधतंत्र के संबद्ध ननयोजकों और श्रीमती पावचती देवी के बीर् अनुबंध में ननर्ददष्ट केन्द्रीय सरकार औद्योनगक

अनधकरण एवं श्रम न्द्यायालय-2, र्ंडीगढ़, पंर्ाट (ररफरेन्द्स न.- 270/2024) को जैसा दक अनुलग्नक में ददखाया गया है,

प्रकानशत करती है जो केन्द्रीय सरकार को सॉफ्ट कॉपी के साथ 07.08.2026 को प्राप्त हुआ था l

[la

एल-42025/07/2026-60-आईआर(डीयू)]

सलोनी, उप ननदेशक

New Delhi, the 7th August, 2026

S.O. 1740.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 270/2024) of the Central Government Industrial

Tribunal cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the

employers in relation to Post Graduate Institute of Medical Education & Research (PGIMER); M/s Om

Security & Cleaning Services and Smt. Parwati Devi which was received along with soft copy of the award by the

Central Government on 07.08.2026.

[No. L-42025/07/2026-60-(IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh

(Presided over by Mr. Kamal Kant).

ID No.270/2024

Parwati Devi W/o Sh. Ramlal, R/o House No.1067/0, Badi Karor, Near Church, Naya Gaon, SAS Nagar,

Mohali.

-------- Workman

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9211

Versus

1. Post Graduate Institute of Medical Education & Research (PGIMER), through its Director, Sector 12,

Chandigarh.

2. M/s Om Security & Cleaning Services, through its Proprietor & Manager, Head office E-194, Sector 63,

Noida, UP-201307.

Local Address:- SCO 185, Sector 38C, Chandigarh.

----Respondents

Present:-

Sh. Satyavir Singh, AR for workman.

None for respondent no.1 & 2.

Respondent no.2 already ex parte.

Order : 06.02.2026

1.

The workman has filed the present claim petition under Section 2A of the Industrial Disputes Act, 1947

(hereinafter called as Act) against her termination dated 07.06.2023 claiming reinstatement with full back

wages along with all consequential benefits.

2.

The case is taken up in Special Campaign for disposal of pending cases. Today, AR for workman made

following statement:-

“Stated that on the instruction of the workman Smt. Parwati Devi, I withdraw this

ID case time being.”

3.

In view of the statement of AR for workman, this Tribunal is left with no choice, except to pass a 'No Claim

Award'. Accordingly, 'No Claim Award' is passed in the present petition.

4.

Let copy of this award be sent to the Appropriate Government as required under Section 17 of the Act for

publication.

KAMAL KANT, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1741.— औद्योनगक नववाद अनधननयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

भारत के ननयंत्रक एवं महालेखापरीक्षक; प्रधान महालेखाकार (ऑनडट); महालेखाकार (ए एंड ई) के प्रबंधतंत्र के संबद्ध

ननयोजकों और श्री पीपल मोहम्मद के बीर् अनुबंध में ननर्ददष्ट केन्द्रीय सरकार औद्योनगक अनधकरण एवं श्रम न्द्यायालय-2,

र्ंडीगढ़, पंर्ाट (ररफरेन्द्स न.- 05/2025) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकानशत करती है जो केन्द्रीय सरकार

को सॉफ्ट कॉपी के साथ 07.08.2026 को प्राप्त हुआ था l

[la

एल-42025/07/2026-164-आईआर(डीयू)]

सलोनी, उप ननदेशक

New Delhi, the 7th August, 2026

S.O. 1741.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the

Central Government hereby publishes the award (Reference No. 05/2025) of the Central Government

Industrial Tribunal cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial

dispute between the employers in relation to Comptloller & Auditor General of India; Principal

Accountant General (Audit); Accountant General (A&E) and Shri Pipal Mohammad which was

received along with soft copy of the award by the Central Government on 07.08.2026.

[No. L-42025/07/2026-164-(IR(DU)]

SALONI, Deputy Director

9212

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

In the Central Government Industrial Tribunal-cum-Labour Court-I, Chandigarh

(Present:- Mr. Kamal Kant, PO-cum-Link Officer).

ID No.05/2025

Pipal Mohammad S/o Sh. Kaimdin, aged about 56 R/o village Todar Majra, PO Majatri, Tehsil Kharar,

District Mohali-140307.

-------- Workman

Versus

1. Comptloller & Auditor General of India, 10, Bahadur Shah Zafar Marg, New Delhi-110002

(Deleted)

2. Principal Accountant General (Audit), Punjab, Plot No.20-21, Sector 17, Chandigarh-160017.

3. Accountant General (A&E), Punjab, Sector 17, Chandigarh-160017.

------Respondents

Present:-

Sh. Jagdeep Jaswal, AR for workman.

Sh. Brijesh Mittal, AR for respondent no.1to 3.

AWARD : 28.04.2026

1.

Hon'ble High Court of Punjab and Haryana vide order dated 19.05.2025 passed in CWP No.26760 of 2019

titled as Bhag Singh and others versus Comptroller and Auditor General of India and others has referred this

matter under Section 10A of the Industrial Disputes Act, 1947 (hereinafter called the Act) to this Tribunal

observing that if applicant challenge his termination, the question of limitation shall not be gone into and the

Labour Court/Industrial Court shall examine their grievance in terms of Section 10A of the Act by taking

dispute directly. It is also made clear that the dismissal of appeal by the Central Administrative Tribunal shall

not come in the way. It is under these circumstances, the present petition has been filed by the workman

challenging his oral termination dated 02.05.2017.

2.

Brief facts of the case, as per claim statement of workman, are that the workman was employed as Casual

Labourer by the Respondent No.3 against the regular sanction post w.e.f. 13.08.2003 and has been

continuously working till 02.05.2017. Workman worked with the management continuously and completed

more than 240 days in the year 2016 and 2017. He has also worked 240 days preceding one year from the date

of his termination on 02.05.2017.

3.

Workman was engaged on the sanctioned posts through legal process and worked for more than 13 years, but

he was not granted temporary status despite of the instructions issued by Government of India dated

01.09.1993 on the ground that the said scheme was only for one time.

4.

As per the information received by the workman, still 28 posts of MTS are vacant in the office of respondent

No.3 against which, the workman was continuously working. Management outsourced the work of the

workman and removed the workman from his work. The respondent No.2 has ordered verbally not to report

for work on 02.05.2017, without giving any notice in writing. The workman orally requested the respondents

to regularize his services also in accordance with the rules and at par with the other Casual Labourers who has

been regularized or given temporary status. But instead of regularizing the services of the workman, the

respondent no.1 has outsourced the services through some contractors.

5.

Services of workman were dispensed with whereas, his juniors were retained in service, which was in violation

of Section 25H of the Act. It is further maintained that no compensation was given to the workman, which is in

violation of Section 25F of the Act. Workman was eligible for regularization of his service as 28 posts of MTS

are lying vacant in the office of respondent no.3. Workman filed OA No.60/470/2017 dated 02.05.2017 in

Hon'ble Central Administrative Tribunal, Chandigarh (hereinafter called as CAT Chandigarh) and vide order

dated 03.05.2017, Hon'ble CAT, Chandigarh directed the respondent to allow the workman and others to

continue till 12.05.2017. The said OA was finally dismissed on 23.04.2019. Applicant also filed review

application, which was also dismissed on 22.08.2019. Workman challenged the said order before the Hon'ble

High Court by filing CWP No.26760/2019 and the matter was relegated to this Tribunal by the High Court.

Hon'ble Supreme Court in case titled as Jaggo V/s Union of India and others (2024 INSC 1034) held that

termination of casual employees working since long is unfair and they are to be regularized.

6.

It is maintained that the work performed by the workman is of perennial in nature. It is prayed that claim of the

workman may be allowed and oral termination dated 02.05.2017 may be declared illegal and arbitrary and

workman be reinstated back in service and deemed to be in service with all consequential benefits and be also

held entitled for full back wages from the date of his termination.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9213

7.

Notice of petition was given to the respondents, who filed reply thereof maintaining therein that the workman

was engaged as casual worker for performing work on seasonal basis as per need and requirement of work by

office of respondent No.2 w.e.f. 13.08.2003 and performed duty for a period of 1563 days. As per office

records the payment to casual workers including the workman was being made through Contingent Bill

Register (2009-2010) under the Head "Wages' and the name of the workman finds mentioned at Serial No.26

therein. The GOI DOPT OM dated 01.09.1993 providing for temporary status/regularization categorically

provided for conferment of temporary status on all casual labourers who were in employment on the date of

issue of OM and who have rendered a continuous service of atleast one year i.e. engaged for a period of 240

days. The workman has never completed a period of 240 days. The workman is himself admitting to having

been engaged in 13.08.2003 does not get covered under the said scheme which was only for those casual

labourers who were in employment on the date of issue of OM i.e. 01.09.1993. Hence, the submissions

regarding grant of temporary status to the Workman is misconceived. Moreover, in the previous litigations

filed by the Workman before Hon'ble CAT Chandigarh Bench, the said relief of temporary/regularization was

never sought/pleaded by the Workman and earlier stage also.

8.

The regular post of MTS, if vacant/available, with the department shall be filled up on direct recruitment basis

to be conducted by SSC as per provisions of relevant Recruitment Rules. At earlier point of time, in pursuance

to advertisement dated 24.09.2011 for filling up the post of MTS on direct recruitment basis, the application of

workman belonging to BC Category was duly considered and he was granted all the admissible relaxations of

age, period of his engagement as casual labourer etc. However, since he was overage by more than 04 ½

years, even after grant of all admissible relaxation, his application was rejected on account of being overage.

The Workman assailed the said rejection of his candidature with respect to direct recruitment by filing OA

No.143/CH/2013 decided on 10.02.2014 before Hon'ble CAT Chandigarh which stood dismissed.

9.

On the basis of recommendations of 6th CPC to the effect that Govt. is required to outsource certain activities

by providing employment in the form of contract labour and the said outsourcing would be discontinued when

the regular incumbents joined and the CAG Headquarter office in February-March 2017 had not considered the

funds/budget for making payment of wages/disbursement of salary to directly engaged daily wagers. Since

there was no scheme for regularization of services except for granting adequate relaxation for the period of his

engagement as Casual Labourer w.e.f. 13.08.2003 to 24.10.2011 as well as other admissible relaxations, prior

to filling up the post of MTS through direct recruitment, the service of workman could not have been

regularized and neither he could have been conferred with temporary status under the scheme being not in

employment during 1993.

10.

Workman is making contradictory statement in his claim statement. He is contending that his services have

been orally terminated w.e.f. 02.05.2017 and further he is also contending that he was replaced by other

individuals during 2013-2014. The non-assailing of his replacement by other individuals at the relevant time in

2013-2014 under the relevant provisions of the Act and availing his remedies before Ld. CAT and thereafter,

before Hon'ble High Court makes the present claim statement time barred by limitation by calculating the

period from 2013-2014 respectively.

11.

The workman himself sought discharge from services vide his application dated 01.08.2014. Had the letter

dated 01.08.2014 being fabricated document, the workman could have availed his legal remedies to prove the

said letter as fabricated one from competent court of law and neither any said contention was raised by him at

earlier point of time by making submissions qua the same in cases filed by workman before Hon'ble CAT/High

Court of Punjab and Haryana.

12.

Further, there is no scheme of regularization in the management department and the available post of MTS

shall be filled up on the basis of open competition/direct recruitment to be conducted by SSC strictly in terms

of Statutory Recruitment Rules for the post of MTS.

13.

Workman has already availed his remedies after his disengagement by filing appropriate cases before Hon'ble

CAT Chandigarh Bench as well as Hon'ble Punjab and Haryana High Court and the present claim statement

filed by the Workman being misconceived and against the relevant provisions of rules and law, deserves to be

dismissed outrightly in the interest of justice.

14.

It is added here that AR for respondents moved an application for dropping the name of respondent no.1 from

the array of parties for the reasons mentioned in the application and AR for workman gave no objection and

application was allowed. However, in this case, all the respondents have jointly filed written statement.

Respondent no.1 is the controlling authority of respondent no.2 & 3 and thus was a formal party.

9214

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Evidence of workman:-

15.

In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit

Ex.WW1/A and has been cross examined by the AR for respondents. AR for workman closed the evidence on

15.04.2026.

List of documents:-

Sr. No.

Document

Dated

Exhibit/Mark

1.

Attendance

Ex.WW1/1

2.

Work report

23.01.2013

Mark A

3.

Letter

17.03.2017

Mark B

4.

Letter

29.03.2017

Mark C

5.

Letter

10.04.2017

Mark D

6.

Letter

13.04.2017

Mark E

7.

Letter

25.04.2017

Mark F

8.

Order of Hon'ble CAT

03.05.2017

Mark G

9.

Order of Hon'ble CAT

23.04.2019

Mark H

10.

Order of Hon'ble High Court

19.05.2025

Mark I

11.

Summary of working days

Mark J

Evidence of respondents:-

16.

Respondent no.1& 2 has examined Sh. Varinder Singh Saini, Assistant Account Officer, who tendered into

evidence his affidavit MW1/A and has been cross examined by AR for workman. AR for respondents closed

the evidence on 21.04.2026.

List of documents of respondents:-

Sr. No.

Document

Dated

Exhibit/Mark

1.

Details of litigations

Mark A

2.

Order of Hon'ble CAT

10.02.2014

Mark B

3.

Order of Hon'ble CAT

22.08.2019

Mark D

Submissions of workman:-

17.

While arguing the case, ld. counsel for workman contended that in this case, workman was engaged as casual

labour by the respondent on regular sanctioned post w.e.f. 13.08.2003 and was continuously worked till

02.05.2017 for more than 13 years and was terminated verbally on 02.05.2017. Workman had completed 240

days preceding the year of his termination on 02.05.2017. Against the verbal termination order, workman

along with other workmen had gone in Hon'ble CAT, Chandigarh in OA No.60/470/2017 challenging the

termination order and had also sought regularization, which was dismissed by the Hon'ble CAT, Chandigarh.

Thereafter, workman went in High Court and High Court vide order dated 19.05.2025 has relegated the matter

to this Tribunal. He further contended that since this Tribunal has been directed to dispose of the case in terms

of Section 10A of the Act. In this case workman had completed 240 days, however, no compensation was

given to him and there was violation of Section 25F of the Act.

Submissions of respondents:-

18.

On the other hand, ld. counsel for respondents contended that in this case, workman was removed from service

due to non sending of wages under wages head by the head office of respondent no.1.Instructions were also

received from the Government of India that no direct appointment be made of casual employees and they may

be engaged through contractors. Moreover, the workman was gainfully employed after his termination. As per

order of Hon'ble High Court dated 19.05.2025 passed in CWP No.26760 of 2019, this Tribunal is not

competent to decide this matter. Moreover, the workman was re-engaged on 23.09.2022 on outsourcing basis.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9215

Findings:-

19.

I have given due consideration to the arguments advanced by AR for both the parties.

20.

The first contention regarding the claimant is that whether he comes within the definition of „workman‟ as is

defined in Section 2(s) of the Act. I may mention that claimant was working as casual labour as per his claim

petition and affidavit submitted before the Tribunal. In plain words the claimant was performing his duties as

labourer/unskilled worker. He was not in supervisory or administrative post requiring him to perform only

administrative duties. While interpreting Section 2(s) Hon‟ble Supreme Court in the case of Devinder Singh

Vs. Municipal Council, Sanaur, AIR 2011 Supreme Court 2532, has observed as follows:-

“The source of employment, the quantum of recruitment, the terms & conditions of

employment/ contract of service, the quantum of wages/ pay and mode of payment are not at all

relevant for deciding whether or not a person is a workman within the meaning of Section 2(s)

of the Act. The definition of workman also does not make any distinction between full time and

part time employee or a person appointed on contract basis. There is nothing in the plain

language of Section 2(s) from which it can be inferred that only person employed on regular

basis or a person employed for doing whole time job is a workman and the one employed on

temporary, part time or contract basis on fixed wages or as a casual employee or for doing duty

for fixed hours is not a workman.”

21.

Thus, Hon‟ble Supreme Court has clarified that the definition of workman also does not make any distinction

between full time or part time employee or a person appointed on contract basis. There is nothing in plain

language of Section 2(s) from which it can be infer that only person employed on regular basis or a person

employed for doing whole time job is a workman and the one employed on temporary, part time or contract

basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a workman. In view of the

ratio of law enunciated in the above ruling, in my considered opinion the claimant herein admittedly falls

within the definition of „workman‟ under Section 2(s) of the Act.

22.

Next question which arises for consideration is whether respondents are an industry. The Hon‟ble Apex Court

in the case of Banglore Water Supply & Sewerage Board Vs. A. Rajappa 1978(36) FLR 266 dealt at length

with the ambit and scope of expression “industry” as defined in Section 2(j) of the Act, and has laid down

triple test for determining whether a particular establishment is industry or not. The triple test is where (a)

systematic activity (b) organised by cooperation between employer and employee (the direct and substantial

element is commercial (c) for the production or distribution of goods and services to calculated to satisfy

human wants and wishes prima facie is an “Industry” in that enterprise. To support this view, reliance can be

placed on Banglore Water Supply & Sewerage Board (supra).

23.

In the present case, respondent is a government body and is engaged in systematic activity organized by

cooperation between employer and employee (employee being workman in the present case) and is covered

under the Act.

24.

Further, Hon'ble Supreme Court in case titled as Chief Conservator of Forest Versus Jagannath Maruti

Kondhare (1996 (2) SCT 164), has held that work, which was not be regarded as a part of inalienable of

inescapable function of the State and which work can be well undertaken by a private agency does not require

an instrumentality of State, such functions of the State fall within the ambit of Industry. Thus, function being

done by the respondents cannot be said to be sovereign function of the State and thus for this purpose of

industrial dispute, respondents would be termed as industry. Thus, respondents are industries for the purpose

they were engaging casual labour and thus functions cannot be said to be sovereign function of State.

25.

So far as this argument of Ld. counsel for respondents that this Tribunal is incompetent to entertain the ID case

under Section 10A of the Act. In this regard, it is pointed out that High Court vide its order dated 19.05.2025

passed in CWP No.26760 of 2019 has directed as under:-

If the writ petitioners challenge their termination, question of limitation shall not be gone into, and

the Labour Court/Industrial Court shall examine their grievances in terms of Section 10A of the

Act, by taking up the dispute directly. If such an application is filed by the petitioners within period

of one month, the Labour Court/Industrial Court shall attempt to decide the same expeditiously,

preferably within a period of one month from today. It is made clear that the dismissal of appeal by

the Central Administrative Tribunal shall not come in their way.

Further, Section 10A of the Act read as follows:-

9216

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Voluntary reference of disputes to arbitration.—(1) Where any industrial dispute exists or is

apprehended and the employer and the workmen agree to refer the dispute to arbitration, they may,

at any time before the dispute has been referred under section 10 to a Labour Court or Tribunal or

National Tribunal, by a written agreement, refer the dispute to arbitration and the reference shall

be to such person or persons (including the presiding officer of a Labour Court or Tribunal or

National Tribunal) as an arbitrator or arbitrators as may be specified in the arbitration agreement.

From co-joint reading of Section 10A of the Act and order of High Court dated 19.05.2025, it emerges

that High Court has referred this matter for adjudicating as arbitrator with the consent of both the parties.

Hence, the application under Section 10A is very much maintainable before this Tribunal.

26.

Next question is whether the workman has completed 240 days preceding one year from the date of his

termination on 02.05.2017. In this regard, it is pertinent to mention here that the workman has placed on

record, vide which he has worked 287 days prior to 02.05.2017 as per attendance register (Ex.WW1/1) and

summary of working days (Mark J) for the period May 2016 to May 2017. Even attendance register is on the

file. Hence, the workman is able to prove that he has worked for about 287 days preceding one year prior to his

termination on 02.05.2017. There is thus violation of Section 25F of the Act, which read as follows:-

Conditions precedent to retrenchment of workmen.—No workman employed in any industry who

has been in continuous service for not less than one year under an employer shall be retrenched by

that employer until—

(a) the workman has been given one month’s notice in writing indicating the reasons for

retrenchment and the period of notice has expired, or the workman has been paid in lieu of such

notice, wages for the period of the notice;

(b) the workman has been paid, at the time of retrenchment, compensation which shall be

equivalent to fifteen days' average pay for every completed year of continuous service or any part

thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as

may be specified by the appropriate Government by notification in the Official Gazette.

27.

Since in this case, applicant is workman as defined under the Act and was removed from service without

compliance of the Section 25F of the Act, which provide payment of retrenchment compensation as well as

wages in lieu of notice for the period of notice. Thus, due to breach of Section 25F of the Act, workman is

entitled for reinstatement. So far as violation of Section 25G and 25H is concerned, no evidence is given by the

workman regarding violation of Section 25G and 25H of the Act. Hence, it is deemed that applicant has failed

to prove violations of Sections 25G and 25H of the Act.

28.

Under these circumstances, the workman is reinstated into service. But so far as back wages are concerned, the

workman was working as a labourer in factory of Mohali after his termination from May 2017 till 23.09.2022

and he has been re-engaged by the management on outsource basis after 23.09.2022, hence, he is entitled for

50% back wages for the period May 2017 to 23.09.2022 as he might have been under paid in the factory.

However, it is made clear that in view of the instructions of Government of India that no casual employee can

be taken directly by the respondents, workman would continue to work with the respondents through

contractor till attaining age of his superannuation/retirement, even if contractor is changed as it is specific case

of the workman in his application before this Tribunal that work assigned to him is of perennial nature and

there is no denial of this fact by the respondents.

29.

As regards regularization of workman, no prayer is made by the AR for workman nor it was argued by the AR

for workman how the workman was entitled for regularization of his services.

30.

Let copy of this award be sent to Central Government for publication as required under Section 17 of the Act.

KAMAL KANT, PO-cum-Link Officer

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9217

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1742.— औद्योनगक नववाद अनधननयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

भारत के ननयंत्रक एवं महालेखापरीक्षक; प्रधान महालेखाकार (ऑनडट); महालेखाकार (ए एंड ई) के प्रबंधतंत्र के संबद्ध

ननयोजकों और श्री भाग नसह के बीर् अनुबंध में ननर्ददष्ट केन्द्रीय सरकार औद्योनगक अनधकरण एवं श्रम न्द्यायालय-2,

र्ंडीगढ़, पंर्ाट (ररफरेन्द्स न.- 04/2025) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकानशत करती है जो केन्द्रीय सरकार

को सॉफ्ट कॉपी के साथ 07.08.2026 को प्राप्त हुआ था l

[la

एल-42025/07/2026-165-आईआर(डीयू)]

सलोनी, उप ननदेशक

New Delhi, the 7th August, 2026

S.O. 1742.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 04/2025) of the Central Government Industrial Tribunal

cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Comptloller & Auditor General of India; Principal Accountant General (Audit); Accountant

General (A&E) and Shri Bhag Singh which was received along with soft copy of the award by the Central

Government on 07.08.2026.

[No. L-42025/07/2026-165-(IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-I, Chandigarh

(Present:- Mr. Kamal Kant, PO-cum-Link Officer).

ID No.04/2025

Bhag Singh S/o Suba Singh, aged about 59 years R/o Village Tole Majra, P.O. Rasanheri, Tehsil Kharar, Mohali-140307.

-------- Workman

Versus

1.

Comptloller & Auditor General of India, 10, Bahadur Shah Zafar Marg, New Delhi-110002

(Deleted)

2.

Principal Accountant General (Audit), Punjab, Plot No.20-21, Sector 17, Chandigarh-160017.

3.

Accountant General (A&E), Punjab, Sector 17, Chandigarh-160017.

------Respondents

Present:-

Sh. Jagdeep Jaswal, AR for workman.

Sh. Barjesh Mittal, AR for respondent no.1 to 3.

Award : 30.04.2026

1.

Hon'ble High Court of Punjab and Haryana vide order dated 19.05.2025 passed in CWP No.26760 of 2019 titled as Bhag

Singh and others versus Comptroller and Auditor General of India and others has referred this matter under Section 10A of

the Industrial Disputes Act, 1947 (hereinafter called the Act) to this Tribunal observing that if applicant challenge his

termination, the question of limitation shall not be gone into and the Labour Court/Industrial Court shall examine their

grievance in terms of Section 10A of the Act by taking dispute directly. It is also made clear that the dismissal of appeal by

the Central Administrative Tribunal shall not come in the way. It is under these circumstances, the present petition has

been filed by the workman challenging his oral termination dated 02.05.2017.

2.

Brief facts of the case, as per claim statement of workman, are that the workman was appointed through Employment

Exchange against the regular sanctioned post by the Respondent No.3 w.e.f. 15.10.1996 and has been continuously

working till 25.10.2011. Workman worked with the respondents continuously and completed more than 240 days in the

year 2016 and 2017. He has also worked 240 days preceding one year from the date of his termination on 02.05.2017.

3.

Workman was engaged on the sanctioned posts through legal process and worked for more than 10 years, but he was not

granted temporary status despite of the instructions issued by Government of India dated 01.09.1993 on the ground that the

said scheme was only for one time.

9218

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

4.

As per the information received by the workman, still 28 posts of MTS are vacant in the office of respondent No.3 against

which, the workman was continuously working. Management outsourced the work of the workman and removed the

workman from his work. The respondent No.2 has ordered verbally not to report for work on 02.05.2017, without giving

any notice in writing. The workman orally requested the respondents to regularize his services also in accordance with the

rules and at par with the other Casual Labourers who has been regularized or given temporary status. But instead of

regularizing the services of the workman, the respondent no.1 has outsourced the services through some contractors.

5.

Services of workman were dispensed with, whereas, his juniors were retained in service, which was in violation of Section

25H of the Act. It is further maintained that no compensation was given to the workman, which is in violation of Section

25F of the Act. Workman was eligible for regularization of his service as 28 posts of MTS are lying vacant in the office of

respondent no.3. Workman filed OA No.60/470/2017 dated 02.05.2017 in Hon'ble Central Administrative Tribunal,

Chandigarh (hereinafter called as CAT Chandigarh and vide order dated 03.05.2017, Hon'ble CAT, Chandigarh directed

the respondent to allow the workman and others to continue till 12.05.2017. The said OA was finally dismissed on

23.04.2019. Applicant also filed review application, which was also dismissed on 22.08.2019. Workman challenged the

said order before the Hon'ble High Court by filing CWP No.26760/2019 and the matter was relegated to this Tribunal by

the High Court. Hon'ble Supreme Court in case titled as Jaggo V/s Union of India and others (2024 INSC 1034) held that

termination of casual employees working since long is unfair and they are to be regularized.

6.

It is maintained that the work performed by the workman is of perennial in nature. It is prayed that claim of the workman

may be allowed and oral termination dated 02.05.2017 may be declared illegal and arbitrary and workman be reinstated

back in service and deemed to be in service with all consequential benefits and be also held entitled for full back wages

from the date of his termination.

7.

Notice of petition was given to the respondents, who filed reply thereof maintaining therein that the workman was engaged

as casual worker for performing work on seasonal basis as per need and requirement of work by office of respondent No.3

w.e.f. 15.10.1996 and performed duty for a period of 2789 days upto 25.10.2011 on intermittent basis. As per office

records the payment to casual workers including the workman was being made through Contingent Bill Register (2009-

2010) under the Head „Wages' and the name of the workman finds mentioned at Serial No.16 therein. The GOI DOPT OM

dated 01.09.1993 providing for temporary status/regularization categorically provided for conferment of temporary status

on all casual labourers who were in employment on the date of issue of OM and who have rendered a continuous service of

atleast one year i.e. engaged for a period of 240 days. The workman has never completed a period of 240 days. The

workman is himself admitting to having been engaged in 1996 does not get covered under the said scheme which was only

for those casual labourers who were in employment on the date of issue of OM i.e. 01.09.1993. Hence, the submissions

regarding grant of temporary status to the Workman is misconceived. Moreover, in the previous litigations filed by the

Workman before Hon'ble CAT Chandigarh Bench, the said relief of temporary/regularization was never sought/pleaded by

the Workman and earlier stage also.

8.

The regular post of MTS, if vacant/available, with the department shall be filled up on direct recruitment basis to be

conducted by SSC as per provisions of relevant Recruitment Rules. At earlier point of time, in pursuance to advertisement

dated 24.09.2011 for filling up the post of MTS on direct recruitment basis, the application of workman belonging to

General Category was duly considered and he was granted all the admissible relaxations of age, period of his engagement

as casual labourer etc. However, since he was overage, even after grant of all admissible relaxation, his application was

rejected. The Workman assailed the said rejection of his candidature with respect to direct recruitment by filing OA before

Hon'ble CAT Chandigarh which stood dismissed.

9.

On the basis of recommendations of 6th CPC to the effect that Govt. is required to outsource certain activities by providing

employment in the form of contract labour and the said outsourcing would be discontinued when the regular incumbents

joined and the CAG Headquarter office in February-March 2017 had not considered the funds/budget for making payment

of wages/disbursement of salary to directly engaged daily wagers. Since there was no scheme for regularization of services

except for granting adequate relaxation for the period of his engagement as Casual Labourer w.e.f. 15.10.1996 to

25.10.2011 as well as other admissible relaxations, prior to filling up the post of MTS through direct recruitment, the

service of workman could not have been regularized and neither he could have been conferred with temporary status under

the scheme being not in employment during 1993.

10.

Workman is making contradictory statement in his claim statement. He is contending that his services have been orally

terminated w.e.f. 02.05.2017 and further he is also contending that he was replaced by other individuals during 2013-2014.

The non-assailing of his replacement by other individuals at the relevant time in 2013-2014 under the relevant provisions

of the Act and availing his remedies before Ld. CAT and thereafter, before Hon'ble High Court makes the present claim

statement time barred by limitation by calculating the period from 2013-2014 respectively.

11.

The workman himself sought discharge from services vide his application dated 01.08.2014. Had the letter dated

01.08.2014 being fabricated document, the workman could have availed his legal remedies to prove the said letter as

fabricated one from competent court of law and neither any said contention was raised by him at earlier point of time by

making submissions qua the same in cases filed by workman before Hon'ble CAT/High Court of Punjab and Haryana.

12.

Further, there is no scheme of regularization in the management department and the available post of MTS shall be filled

up on the basis of open competition/direct recruitment to be conducted by SSC strictly in terms of Statutory Recruitment

Rules for the post of MTS.

13.

Workman has already availed his remedies after his disengagement by filing appropriate cases before Hon'ble CAT

Chandigarh Bench as well as Hon'ble Punjab and Haryana High Court and the present claim statement filed by the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9219

Workman being misconceived and against the relevant provisions of rules and law, deserves to be dismissed outrightly in

the interest of justice.

14.

It is added here that AR for respondents moved an application for dropping the name of respondent no.1 from the array of

parties for the reasons mentioned in the application and AR for workman gave no objection and application was allowed.

However, in this case, all the respondents have jointly filed written statement. Respondent no.1 is the controlling authority

of respondent no.2 & 3 and thus was a formal party.

Evidence of workman:-

15.

In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit Ex.WW1/A and

has been cross examined by the AR for respondents. AR for workman closed the evidence on 15.04.2026.

List of documents:-

Sr. No.

Document

Dated

Exhibit/Mark

1.

Attendance record

Ex.WW1/1

2.

Work report

23.01.2013

Mark A

3.

Letter

17.03.2017

Mark B

4.

Letter

29.03.2017

Mark C

5.

Letter

10.04.2017

Mark D

6.

Letter

13.04.2017

Mark E

7.

Letter

25.04.2017

Mark F

8.

Order of Hon'ble CAT

03.05.2017

Mark G

9.

Order of Hon'ble CAT

23.04.2019

Mark H

10.

Order of Hon'ble High Court

19.05.2025

Mark I

11.

Summary of working days

Mark J

Evidence of respondents:-

16.

Respondent no.1 & 2 has examined Sh. Varinder Singh Saini, Assistant Account Officer, who tendered into evidence his

affidavit MW1/A and has been cross examined by AR for workman. AR for respondents closed the evidence on

21.04.2026.

List of documents of respondents:-

Sr. No.

Document

Dated

Exhibit/Mark

1.

Details of litigations

Mark A

2.

Order of Hon'ble CAT

09.12.2016

Mark B

3.

Order of Hon'ble CAT

30.07.2018

Mark C

4.

Order of Hon'ble High Court

04.09.2017

Mark D

5.

Hon'ble High Court order

09.09.2022

Mark E

6.

Order of Hon'ble CAT

22.08.2019

Mark G

7.

Work report

23.01.2013

Mark I

Submissions of workman:-

17.

While arguing the case, ld. counsel for workman contended that in this case, workman was engaged as casual labour by the

respondent on regular sanctioned post w.e.f. 15.10.1996 and was continuously worked till 02.05.2017 for more than 20

years and was terminated verbally on 02.05.2017. Workman had completed 240 days preceding the year of his termination

on 02.05.2017. Against the verbal termination order, workman along with other workmen had gone in Hon'ble CAT,

Chandigarh in OA No.60/470/2017 challenging the termination order and had also sought regularization, which was

dismissed by the Hon'ble CAT, Chandigarh. Thereafter, workman went in High Court and High Court vide order dated

19.05.2025 has relegated the matter to this Tribunal. He further contended that since this Tribunal has been directed to

dispose of the case in terms of Section 10A of the Act. In this case workman had completed 240 days, however, no

compensation was given to him and there was violation of Section 25F of the Act.

9220

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Submissions of respondents:-

18.

On the other hand, ld. counsel for respondents contended that in this case, workman was removed from service due to non

sending of wages under wages head by the head office of respondent no.1.Instructions were also received from the

Government of India that no direct appointment be made of casual employees and they may be engaged through

contractors. Moreover, the workman was gainfully employed after his termination. As per order of Hon'ble High Court

dated 19.05.2025 passed in CWP No.26760 of 2019, this Tribunal is not competent to decide this matter. Moreover, the

workman was re-engaged on 23.09.2022 on outsourcing basis.

Findings:-

19.

I have given due consideration to the arguments advanced by AR for both the parties.

20.

The first contention regarding the claimant is that whether he comes within the definition of „workman‟ as is defined in

Section 2(s) of the Act. I may mention that claimant was working as casual labour as per his claim petition and affidavit

submitted before the Tribunal. In plain words the claimant was performing his duties as labourer/unskilled worker. He was

not in supervisory or administrative post requiring him to perform only administrative duties. While interpreting Section

2(s) Hon‟ble Supreme Court in the case of Devinder Singh Vs. Municipal Council, Sanaur, AIR 2011 Supreme Court

2532,has observed as follows:-

“The source of employment, the quantum of recruitment, the terms & conditions of

employment/ contract of service, the quantum of wages/ pay and mode of payment are not at

all relevant for deciding whether or not a person is a workman within the meaning of Section

2(s) of the Act. The definition of workman also does not make any distinction between full

time and part time employee or a person appointed on contract basis. There is nothing in the

plain language of Section 2(s) from which it can be inferred that only person employed on

regular basis or a person employed for doing whole time job is a workman and the one

employed on temporary, part time or contract basis on fixed wages or as a casual employee or

for doing duty for fixed hours is not a workman.”

21.

Thus, Hon‟ble Supreme Court has clarified that the definition of workman also does not make any distinction between full

time or part time employee or a person appointed on contract basis. There is nothing in plain language of Section 2(s) from

which it can be infer that only person employed on regular basis or a person employed for doing whole time job is a

workman and the one employed on temporary, part time or contract basis on fixed wages or as a casual employee or for

doing duty for fixed hours is not a workman. In view of the ratio of law enunciated in the above ruling, in my considered

opinion the claimant herein admittedly falls within the definition of „workman‟ under Section 2(s) of the Act.

22.

Next question which arises for consideration is whether respondents are an industry. The Hon‟ble Apex Court in the case

of Banglore Water Supply & Sewerage Board Vs. A. Rajappa 1978(36) FLR 266 dealt at length with the ambit and scope

of expression “industry” as defined in Section 2(j) of the Act, and has laid down triple test for determining whether a

particular establishment is industry or not. The triple test is where (a) systematic activity (b) organised by cooperation

between employer and employee (the direct and substantial element is commercial (c) for the production or distribution of

goods and services to calculated to satisfy human wants and wishes prima facie is an “Industry” in that enterprise. To

support this view, reliance can be placed on Banglore Water Supply & Sewerage Board (supra).

23.

In the present case, respondent is a government body and is engaged in systematic activity organized by cooperation

between employer and employee (employee being workman in the present case) and is covered under the Act.

24.

Further, Hon'ble Supreme Court in case titled as Chief Conservator of Forest Versus Jagannath Maruti Kondhare (1996

(2) SCT 164), has held that work, which was not be regarded as a part of inalienable of inescapable function of the State

and which work can be well undertaken by a private agency does not require an instrumentality of State, such functions of

the State fall within the ambit of Industry. Thus, function being done by the respondents cannot be said to be sovereign

function of the State and thus for this purpose of industrial dispute, respondents would be termed as industry. Thus,

respondents are industries for the purpose they were engaging casual labour and thus functions cannot be said to be

sovereign function of State.

25.

So far as this argument of Ld. counsel for respondents that this Tribunal is incompetent to entertain the ID case under

Section 10A of the Act. In this regard, it is pointed out that High Court vide its order dated 19.05.2025 passed in CWP

No.26760 of 2019 has directed as under:-

If the writ petitioners challenge their termination, question of limitation shall not be gone into, and

the Labour Court/Industrial Court shall examine their grievances in terms of Section 10A of the Act,

by taking up the dispute directly. If such an application is filed by the petitioners within period of one

month, the Labour Court/Industrial Court shall attempt to decide the same expeditiously, preferably

within a period of one month from today. It is made clear that the dismissal of appeal by the Central

Administrative Tribunal shall not come in their way.

Further, Section 10A of the Act read as follows:-

Voluntary reference of disputes to arbitration.—(1) Where any industrial dispute exists or is

apprehended and the employer and the workmen agree to refer the dispute to arbitration, they may,

at any time before the dispute has been referred under section 10 to a Labour Court or Tribunal or

National Tribunal, by a written agreement, refer the dispute to arbitration and the reference shall be

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9221

to such person or persons (including the presiding officer of a Labour Court or Tribunal or National

Tribunal) as an arbitrator or arbitrators as may be specified in the arbitration agreement.

From co-joint reading of Section 10A of the Act and order of High Court dated 19.05.2025, it emerges that High

Court has referred this matter for adjudicating as arbitrator with the consent of both the parties. Hence, the application

under Section 10A is very much maintainable before this Tribunal.

26.

Next question is whether the workman has completed 240 days preceding one year from the date of his termination on

02.05.2017. In this regard, it is pertinent to mention here that the workman has placed on record, vide which he has worked

283 days prior to 02.05.2017 as per attendance register (Ex.WW1/1) and summary of working days (Mark J) for the period

May 2016 to May 2017. Even attendance register is on the file. Hence, the workman is able to prove that he has worked for

about 283 days preceding one year prior to his termination on 02.05.2017. There is thus violation of Section 25F of the

Act, which read as follows:-

Conditions precedent to retrenchment of workmen.—No workman employed in any industry who

has been in continuous service for not less than one year under an employer shall be retrenched by

that employer until—

(a) the workman has been given one month’s notice in writing indicating the reasons for

retrenchment and the period of notice has expired, or the workman has been paid in lieu of such

notice, wages for the period of the notice;

(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent

to fifteen days' average pay for every completed year of continuous service or any part thereof in

excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as

may be specified by the appropriate Government by notification in the Official Gazette.

27.

Since in this case, applicant is workman as defined under the Act and was removed from service without compliance of the

Section 25F of the Act, which provide payment of retrenchment compensation as well as wages in lieu of notice for the

period of notice. Thus, due to breach of Section 25F of the Act, workman is entitled for reinstatement. So far as violation of

Section 25G and 25H is concerned, no evidence is given by the workman regarding violation of Section 25G and 25H of

the Act. Hence, it is deemed that applicant has failed to prove violations of Sections 25G and 25H of the Act.

28.

Under these circumstances, the workman is reinstated into service. But so far as back wages are concerned, the workman

was working as a labourer after his termination from May 2017 till 23.09.2022 and he has been re-engaged by the

respondents on outsource basis after 23.09.2022, hence, he is entitled for 50% back wages for the period May 2017 to

23.09.2022 as he might have been under paid as labourer. However, it is made clear that in view of the instructions of

Government of India that no casual employee can be taken directly by the respondents, workman would continue to work

with the respondents through contractor till attaining age of his superannuation/retirement, even if contractor is changed as

it is specific case of the workman in his application before this Tribunal that work assigned to him is of perennial nature

and there is no denial of this fact by the respondents.

29.

As regards regularization of workman, no prayer is made by the AR for workman nor it was argued by the AR for

workman how the workman was entitled for regularization of his services.

30.

Let copy of this award be sent to Central Government for publication as required under Section 17 of the Act.

KAMAL KANT, PO-cum-Link Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1743.— औद्योनगक नववाद अनधननयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

इंनस्टट्यूट ऑफ़ नहमालयन बायोररसोसच टेक्नोलॉजी; ओम प्रकाश के प्रबंधतंत्र के संबद्ध ननयोजकों और श्री हरबंस कुमार के

बीर् अनुबंध में ननर्ददष्ट केन्द्रीय सरकार औद्योनगक अनधकरण एवं श्रम न्द्यायालय-2, र्ंडीगढ़, पंर्ाट (ररफरेन्द्स न.-

43/2019) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकानशत करती है जो केन्द्रीय सरकार को सॉफ्ट कॉपी के साथ

07.08.2026 को प्राप्त हुआ था l

[la

एल-42025/07/2026-167-आईआर(डीयू)]

सलोनी, उप ननदेशक

9222

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

New Delhi, the 7th August, 2026

S.O. 1743.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 43/2019) of the Central Government Industrial Tribunal

cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Institute of Himalayan Bioresource Technology; Om Prakash and Shri Harbans Kumar which was

received along with soft copy of the award by the Central Government on 07.08.2026.

[No. L-42025/07/2026-167-(IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh

(Present:- Mr. Kamal Kant, Presiding Officer).

ID No.43/2019

Harbans Kumar S/o Sh. Prem Chand through R K Singh Parmar, General Secretary Punjab INTUC L-211

Brari PO Partap Nagar, Nangal, Tehsil Nangal, District Rupnagar (Punjab).

-------- Workman

Versus

1. Director Institute of Himalayan Bioresource Technology, (CSIR Complex) Palampur, District Kangra,

Himachal Pradesh.

2. Om Parkash (Govt. Contractor) S/o Sh. Dumnoo Ram, R/o VPO Kandral, Tehsil Bajinath, District

Kangra, Himachal Pradesh.

------Respondents

Present:-

Sh. R P Rana, AR for workman.

Sh. G S Sidhu, AR for respondent no.1.

Respondent no.2 already ex parte.

AWARD : 23.04.2026

1.

Workman has filed the present petition/complaint under Section 33 of the Industrial Disputes Act,

1947 (hereinafter called the Act) against his termination by respondent no.1 & 2 on 28.11.2024.

2.

The brief facts, related to the case are that the workman was terminated orally by respondents on

28.11.2014 during the pendency of the main reference bearing no.255 of 2013 contravening Section 33

of the Act. It is prayed that termination be set aside and appropriate order be passed.

3.

Notice of complaint was given to the respondents.

4.

Respondent no.1 filed reply thereof maintaining therein that the workman was never employed by

respondent no.1 and no master and servant relation exists between respondent no.1 and the workman.

Workman was deployed by respondent no.2 as a part of the man-force for executing the work in terms

of the agreement dated 18.07.2013 which expired in July, 2014 and thereafter no further contract was

awarded to respondent no.2 nor any man-force has been deployed. The respondent No.2 had been paid

the bills submitted by him, in terms of the agreement with him. Termination of service of the workman

is on the part of respondent No.2 i.e. contractor. In any case, since the workman was never employed

in the service of respondent no.1, the question of violation of any service condition during the

pendency of the reference No.255 2013 does not arise against respondent no.1. It is prayed that the

application may be rejected against respondent no.1.

5.

It is pertinent to mention here that respondent no.2 was proceeded ex parte on 26.02.2020.

Evidence of parties:-

6.

In order to prove his case, workman examined himself as WW1 and tendered into evidence his

affidavit Ex.WW1/A and has been cross examined by the AR for respondent no.1. AR for workman

closed the evidence on 22.01.2025.

7.

List of documents, original exhibited with ID No.85/2015 Bir Singh Vs IHBT, photocopy placed in

file:-

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9223

Sr. No.

Document

Dated

Exhibit

1.

Bill

24.05.2013

Ex.W-1

2.

Bill

22.03.2021

Ex.W-2

3.

Bill

22.03.2021

Ex.W-3

4.

Bill

22.07.2010

Ex.W-4

5.

Bill

23.03.2007

Ex.W-5

6.

Bill

28.03.2007

Ex.W-6

7.

Bill

07.09.2010

Ex.W-7

8.

Respondent no.1 has examined Sh. Shankar Das, Controller of Administration, CSIR-IHBT, Palampur

Palampur as RW1, who tendered into evidence his affidavit RW1/A along with documents RW-1/1 and

has been cross examined by AR for workman. AR for respondent no.1 closed the evidence on

08.01.2026.

List of documents:-

Sr.

No.

Agreement

Dated

Period

1. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

24.05.1996

13.03.1996 to

12.03.1997

2. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.06.1998

01.09.1997 to

31.08.1998

3. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.06.1998

15.04.1998 to

14.04.1999

4. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.06.1998

16.04.1998 to

15.04.1999

5. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.05.1999

01.04.1999 to

31.03.2000

6. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.05.1999

01.05.1999 to

30.04.2000

7. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

28.07.2000

01.07.2000 to

30.06.2001

8. Agreement with M/s Om Prakash Kapoor (Ex.RW-

1/1 Colly)

08.07.2001

16.07.2001 to

15.07.2002

9. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.07.2001

16.07.2001 to

15.07.2002

10. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.07.2001

16.07.2001 to

15.07.2002

11. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

10.03.2004

10.02.2004 to

09.08.2004

12. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

10.03.2004

10.02.2004 to

09.08.2004

13. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

10.03.2004

10.02.2004 to

09.08.2004

14. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

10.03.2004

10.02.2004 to

09.08.2004

15. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

22.03.2004

12.02.2004 to

11.08.2004

9224

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

16. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

22.03.2004

12.02.2004 to

11.08.2004

17. Letter (Part of Ex.RW-1/1 Colly)

06.06.2005

06.06.2005 to

05.12.2005

18. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/2)

06.06.2005

06.06.2005 to

05.12.2005

19. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

06.06.2005

06.06.2005 to

05.12.2005

20. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

06.06.2005

06.06.2005 to

05.12.2005

21. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

06.06.2005

06.06.2005 to

05.12.2005

22. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.10.2008

06.10.2008 to

05.10.2009

23. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.10.2008

06.10.2008 to

05.10.2009

24. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.10.2008

06.10.2008 to

05.10.2009

25. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

07.01.2010

07.01.2010 to

06.01.2012

26. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

07.12.2010

07.12.2010 to

06.12.2012

27. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

07.12.2010

07.12.2010 to

06.12.2012

28. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

07.12.2010

07.12.2010 to

06.12.2012

29. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

09.12.2012

09.12.2012 to

08.12.2014

30. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

19.12.2012

19.12.2012 to

18.12.2014

31. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

19.12.2012

19.12.2012 to

18.12.2014

Submissions of workman:-

9.

While arguing the case, AR for workman contended that in this case, reference was pending before this

Tribunal bearing ID No.255 of 2013 titled as The General Secretary, Institute of Himalayan Bio-

Source Technology (CSIR) Shramik Sangh, Palampur, Distt. Kangra versus The Director,

Himalayan Bio-source Technology (CSIR) regarding regularization of service and accepting all other

demands raised by union of workers, of which present workman is also a party. During the pendency of

that reference, workman was removed from service orally on 28.11.2014 by respondent no.2 without

seeking permission from this Court under Section 33(2)(b) of the Act, which is illegal. Workman would

be deemed to be in the service of respondent no.1. He further contended that in this case, respondent

no.2 was allotted contract by respondent no.1 for the period 19.12.2012 to 18.12.2014. However, the

said period was reduced to 30.11.2014 and the workman was paid salary upto 28.11.2014 and on that

date, his services were dispensed with. He thus contended that the workman is liable to be reinstated into

service.

Submissions of respondent no.1:-

10.

While arguing the case, AR for respondent no.1 contended that IHBT i.e. respondent no.1 being

subsidiary of CSIR is not covered under the definition of Industry as defined under the Act. To support

this view, he place reliance upon Central Institute of Medicinal and Aromatic Plants and others versus

Sri Rishi Dev Mishra and other (Writ –C No.1005010 of 2006).

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9225

11.

He further contended that there is no master and servant relation between respondent no.1 and the

workman. To support this view, he placed reliance upon The Joint Secretary, Central Board of

Secondary education and another versus Raj Kumar Mishra and another (SLP (C) No.22030 of 2023.

He further placed reliance upon Kirlosker Brothers Ltd. Vs. Ramcharan and others (2022 INSC 1255).

He further contended that CSIR Service Rules are not applicable to the workman. No appointment letter

was given to the workman. He thus contended that the complaint be dismissed.

Findings:-

12.

I have given due consideration to the arguments advanced by Sh. R P Rana (AR for workman), Sh. G S

Sidhu (AR for respondent no.1).

13.

First question which arise for consideration is whether the applicant is workman as defined under

Section 2(s) of the Act. To my mind, the claimant is a workman within the definition of Section 2(s) of

the Act. In this regard, reliance can be made to the decision in the case of Devinder Singh Vs.

Municipal Council, Sanaur, AIR 2011 Supreme Court 2532, wherein the Hon'ble Apex Court while

interpreting the provisions of Section 2(s) of the Act which deals with the definition of "workman" has

observed as under :

"The source of employment, the quantum of recruitment, the terms & conditions

of employment/ contract of service, the quantum of wages/ pay and mode of

payment are not at all relevant for deciding whether or not a person is a workman

within the meaning of Section 2(s) of the Act. The definition of workman also does

not make any distinction between full time and part time employee or a person

appointed on contract basis. There is nothing in the plain language of Section

2(s) from which it can be inferred that only person employed on regular basis or

a person employed for doing whole time job is a workman and the one employed

on temporary, part time or contract basis on fixed wages or as a casual employee

or for doing duty for fixed hours is not a workman.”

It is clear from the perusal of aforesaid observations that even if a person is engaged on temporary, part

time or contract basis or for doing any other kind of work and is duly paid wages for the said work, in

that eventuality such a person would be covered by the definition of "workman" as provided in Section

2(s) of the Act. Thus, nature of appointment or source of appointment is not relevant to be a "workman"

within the Act. Since, the workman was engaged on contract basis by respondent no.2 for the work of

respondent no.1, thus it would be termed as workman under Section 2(s) of the Act.

14.

Next question which arises for consideration is whether respondent no.1 is an industry. The Hon‟ble

Apex Court in the case of Banglore Water Supply & Sewerage Board Vs. A. Rajappa 1978(36) FLR

266 dealt at length with the ambit and scope of expression “industry” as defined in Section 2(j) of the

Act, and has laid down triple test for determining whether a particular establishment is industry or not.

The triple test is where (a) systematic activity (b) organised by cooperation between employer and

employee (the direct and substantial element is commercial (c) for the production or distribution of

goods and services to calculated to satisfy human wants and wishes prima facie is an “Industry” in that

enterprise. Relevant part of judgment of Banglore Water Supply & Sewerage Board (supra) is

reproduced as under:-

“Does research involve collaboration between employer and employee? It does. The

employer is the institution, the employees are the scientists, para-scientists and other

personnel. Is scientific research service? Undoubtedly it is. Its discoveries are valuable

contributions to the wealth of the nation. Such discoveries may be sold for a heavy price

in the industrial or other markets. Technology has to be plate for and technological

inventions and innovations may be patented and sold. In our scientific and technological

age nothing has more cash value, as intangible goods and invaluable services, than

discoveries. For instance, the discoveries of Thomas Alva Edison made him fabulously

rich. It has been said that his brain had the highest cash value in history for he made the

world vibrate with the miraculous discovery of recorded, sound. Unlike most inventors,

he did not have to wait to get his reward in heaven; he received, it munificently on this

gratified and grateful earth, thanks to conversion of his inventions into, money a plenty.

Research benefits industry. Even though a research institute may be a separate entity

disconnected from the many industries which funded the institute itself, it can be

regarded as an Organisation, propelled by systematic activity, modeled on co-operation

between employer and employee and calculated to throw up discoveries and inventions

and useful solutions which benefit individual industries and the nation in terms of goods

9226

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

and services and wealth. It follows that research institutes, albeit run without profit-

motive, are industries.”

15.

In the present case, respondent no.1 is doing research work and as per RW1 Sh. Shankar Das Rishi,

products are sold in the institute for display purposes of the products. He has also admitted that vide

Ex.W1 to W7, various products of the institute have been sold to the customers. Thus, respondent no.1

is engaged in systematic activity organized by cooperation between employer and employee (employees

being workmen in the present case) for the production or distribution of goods and services to calculated

to satisfy human wants. In this regard, it is carrying out research. In addition to this, from the research

work, benefits are being driven by respondent no.1 and as per observation of Hon'ble Supreme Court in

Banglore Water Supply & Sewerage Board (supra), respondent no.1 falls under the definition of

„industry‟ as defined under the Act.

16.

So far as argument of AR for respondent no.1 that respondent no.1 being instrumentality of state does

not fall under the definition of „industry‟. In this regard, Hon'ble Supreme Court in case titled as Chief

Conservator of Forest Versus Jagannath Maruti Kondhare (1996 (2) SCT 164), has held that work,

which was not be regarded as a part of inalienable of inescapable function of the State and which work

can be well undertaken by a private agency does not require an instrumentality of State, such functions

of the State fall within the ambit of Industry. Thus, function of doing research and other allied works of

selling of goods and earning from research cannot be said to be sovereign function of the State and thus

for this purpose of industrial dispute, respondents would be termed as industry.

17.

Thus, from every angle, respondent no.1 is an industry. Moreover, its employees are not governed by

IHBT Rules or CCS Rules, thus it is an industry. In view of the judgment of Hon'ble Supreme Court

titled as Banglore Water Supply & Sewerage Board (supra), decided by Hon'ble Supreme Court, the

case law Central Institute of Medicinal and Aromatic Plants and others (supra) decided by Hon'ble

High Court at Allahabad cited by AR for respondent no.1 is not attracted to the facts and circumstances

of the present case.

18.

It is also added here that as per definition of contractor as given in the Section 2(c) of the Contract

Labour (Regulation and Abolition) Act, 1970 (hereinafter called as Contract Act), respondent no.2 was

supplying contract labour to the respondent no.1. Thus, he would also fall under the definition of

contractor. Section 2(c) of the Contract Act is reproduced as under:

“Contractor”, in relation to an establishment, means a person who undertakes to produce

a given result for the establishment, other than a mere supply of goods or articles of

manufacture to such establishment, through contract labour or who supplies contract

labour for any work of the establishment and includes a sub-contractor;

19.

The workman was doing work i.e. systematic activity for respondent no.1 at the asking of respondent

no.2 and there was cooperation between the workman and respondent no.2, which involve substantial

commercial element for rendering service to satisfy human wants. Thus, as per Banglore Water Supply

(supra), respondent no.2 would be termed as industry.

20.

Next question, which arises for consideration is whether there exists relationship of employer and

employee between respondent no.1 and present workman. In this regard, it is pointed out that admittedly

in this case, union of workmen has filed ID No.255 of 2013 titled as The General Secretary, Institute of

Himalayan Bio-Source Technology (CSIR) (supra). It is further pointed out that in order to prove

relationship of employer and employee i.e. master and servant, the Hon‟ble Supreme Court after

analyzing the catena of cases has laid down in Balwant Raj Saluja Vs. Air India Limited in Civil

Appeal No.10266 dated 25.08.2014, two well recognized tests to find out whether the labours are the

contract employees of the principal employer are:-

1) Whether the principal employer pays the salary instead of contractor and

2) Whether the principal employer controls and supervise the work of the employees?

In this case, admittedly wages were paid by respondent no.2, however, control was of the respondent no.1.

Thus, under these circumstances, it is held that there exist relationship of master and servant between

respondent no.1 and workman.

21.

Further, in the present case, admittedly respondent no.1 is entering into different contract agreements

with respondent no.2 (Ex.RW1/1 Colly as detailed above) by retaining same workmen and thus

contracts are sham in view of the observation of Hon'ble Delhi High Court in similar matter in

Management of CPWD versus Anand Kumar Gautam and ors. (2024:DHC:2757) which is as under:

“Contract labourers can be engaged for the work of contractor only and not for the work

of any establishment. In the present case the work is of the establishment and not of the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9227

contractor. The term supply of labour by a contractor is against human dignity. No one

can be a supplier of human labour to any establishment. It is the duty of State to give

employment to citizen and not of the contractors. Contractors cannot supply labour to any

establishment. In view of the above discussion it becomes quite obvious that the

contractors workmen in the instant case have been retained all along and contractors have

been changed. So the contractor is only a label of a bottle. This label is changed from time

to time but the contents of the bottle always remain the same. The contractors have been

changed and the workmen have been retained. Such a system is in-human. The contractors

are the direct employees of the respondent/management.

From the foregoing it becomes quite obvious that these two workmen have been working

regularly and even without artificial breaks since 1995-96. The contract is camouflage.

There is direct relation of master and servant between the respondent and the

workmen.”

22.

Hon'ble Supreme Court in case titled as Bhilwara Dugdh Utpadak Sahakari S. Ltd. Versus Vinod

Kumar Sharma dead by LRs and others (AIR 2011 Supreme Court 3546) has held as under:-

4. In order to avoid their liability under various labour statutes employers are very often

resorting to subterfuge by trying to show that their employees are in fact, the employees of

a contractor. It is high time that this subterfuge must come to an end.

5. Labour statutes were meant to protect the employees/workmen because it was realized

that the employers and the employees are not on an equal bargaining position. Hence,

protection of employees was required so that they may not be exploited. However, this new

technique of subterfuge has been adopted by some employers in recent years in order to

deny the rights of the workmen under various labour statutes by showing that the

concerned workmen are not their employees but are the employees/workmen of a

contractor, or that they are merely daily wage or short term or casual employees when in

fact they are doing the work of regular employees.

23.

Thus, from the above observation of Hon'ble Supreme Court, it is clear that respondent no.1 has resorted

to subterfuge by trying to show that workman was employee of respondent no.2.

24.

Moreover, respondent no.1 entered in various agreements with respondent no.2 (Ex.RW1/1 Colly),

which shows that there is practice that the contract for engagement of the employer/labour through

contractors changes on the basis of bid of the contractors every year. The contractor may change but the

employees/labourers always remain same. The workman was already working with the management

when the contract was tendered to the respondent no.2. Neither the workman was engaged by

respondent no.2 nor the services of workman were terminated by respondent no.2. It is the respondent

no.1 who uses to select/engage and terminate the labour/workman and respondent no.2 has no role in the

same. Thus, it shows that the contract was just an eyewash. It is further submitted that contract was

allotted to respondent no.2 by respondent no.1 on different years as per Ex.RW1/1 (colly) and sometime

to other contractors, meaning thereby the respondent no.1 is controlling authority of the workmen

including their engagement, termination etc. and even the wages of workman were also decided by

respondent no.1 only and respondent no.2 has no role to play in the same. So, there exist relationship of

employees/servant and employer/master between the workmen and respondent no.1. Thus, the judgment

The Joint Secretary, Central Board of Secondary education and another (supra) cited by AR for

respondent no.1 is not attracted to the present case as in this case, time and again, same workers were

being engaged through contractor and in view of clear cut dictum of Hon'ble Delhi High Court in

Management of CPWD (supra), the aforementioned case law is not attracted.

25.

So far as Kirlosker Brothers Ltd. Vs. Ramcharan and others (supra) relied upon by the AR for

respondent no.1 is concerned, facts and circumstances of this case are distinguishable. In the said

Kirlosker Brothers Ltd. Vs. Ramcharan and others (supra), Court has held that that when there are no

allegations or findings of sham and bogus contract then the contention of the reinstatement or the

absorption of the workman cannot be sustained but the facts of the matter at hand is different from the

facts of the case as in the instant case. In this case, workman was working since long and the work was

of perennial nature. Thus, it tantamount to unfair labour practice.

26.

It is added here that admittedly in this case, workman was discharged by the respondent no.1 & 2 and as

per agreement Ex.RW1/1 (colly), contract was awarded to respondent no.2 by respondent no.1 for a

period of two years i.e. from 19.12.2012 to 18.12.2014. However, workman was discharged prior to that

on 28.11.2014.

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

27.

No prior permission was taken by respondent no.1 & 2 before the discharging the services of workman.

Section 33(2)(b) of the Act is very material and the same is reproduced below:-

“(b) for any misconduct not connected with the dispute, or discharge or punish, whether

by dismissal or otherwise, that workman:

Provided that no such workman shall be discharged or dismissed, unless he has

been paid wages for one month and an application has been made by the employer to the

authority before which the proceeding is pending for approval of the action taken by the

employer.”

28.

As per aforesaid provision, the workman can be discharged or dismissed after paying one month wages

and after getting approval of the competent authority. In this case, no wages for one month was paid nor

any permission from competent authority was taken before discharging the workman and consequently,

it would be considered that workman was in regular services of the workman. A Full Constitutional

Bench of Hon'ble Supreme Court in case titled as Jaipur Zila Sahakari Bhoomi Vikas Bank Ltd.

versus Ram Gopal Sharma and others (2002 SCC (L & S) 279) has held that failure to make

application for approval of the order of discharge or dismissal or withdrawal of such application after

making it, held, renders the order of discharge or dismissal void and inoperative.

29.

The present application under Section 33A is well maintainable and purpose has also been defined by

the Hon'ble Supreme Court in Jaipur Zila Sahakari Bhoomi Vikas Bank Ltd. (supra) case, which read

as follows:-

Section 33A is available to an employee and is intended to save his time and trouble in as

much as he can straightway make a complaint before the very authority, where the

industrial dispute is already pending between the parties, challenging the order of

approval instead of making efforts to raise an industrial dispute, get a reference and

thereafter adjudication. Section 31 speaks of penalty in respect of the offences stated

therein. This provision is not intended to give any remedy to an aggrieved employee. It is

only to punish the offender. Merely because penal provision is available or a workman has

a further remedy under Section 33A to challenge the approval granted, it canoe be said

that the order of discharge or dismissal does not become inoperative or invalid unless set

aside under Section 33A.

30.

In view of the above discussion, the termination of workman on 28.11.2014 is bad in law and hence is

set aside. In this case, both the respondents in connivance with each other have dispensed the services of

the workman. Hence, both respondents are liable. The workman is entitled for reinstatement along with

full back wages. It is ordered accordingly. The services of the workman would not be

discharged/terminated during the pendency of the ID No.255 of 2013, wherein, they have claimed

various demands vide charter of demands dated 09.05.2011. However, in case workman has attained the

age of retirement, then he would be entitled for full back wages along with other consequential benefits

instead of reinstatement in service.

31.

Let copy of this award be sent to the Appropriate Government as required under Section 17 of the Act

for publication.

KAMAL KANT, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1744.— औद्योनगक नववाद अनधननयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

भारत के ननयंत्रक एवं महालेखापरीक्षक; प्रधान महालेखाकार (ऑनडट); महालेखाकार (ए एंड ई) के प्रबंधतंत्र के संबद्ध

ननयोजकों और श्री नवजय उननयाल के बीर् अनुबंध में ननर्ददष्ट केन्द्रीय सरकार औद्योनगक अनधकरण एवं श्रम न्द्यायालय-2,

र्ंडीगढ़, पंर्ाट (ररफरेन्द्स न.- 09/2025) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकानशत करती है जो केन्द्रीय सरकार

को सॉफ्ट कॉपी के साथ 07.08.2026 को प्राप्त हुआ था l

[la

एल-42025/07/2026-221-आईआर(डीयू)]

सलोनी, उप ननदेशक

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9229

New Delhi, the 7th August, 2026

S.O. 1744.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 09/2025) of the Central Government Industrial Tribunal

cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Comptloller & Auditor General of India; Principal Accountant General (Audit); Accountant

General (A&E) and Shri Vijay Uniyal which was received along with soft copy of the award by the Central

Government on 07.08.2026.

[No. L-42025/07/2026-221-(IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh

(Present:- Mr. Kamal Kant, Presiding Officer).

ID No.09/2025

Vijay Uniyal S/o Sh. P.D. Uniyal, aged 47 years, R/o House No. 1650, Saini Vihar, Phase 3, Distt. Mohali,

Baltana-140603.

-------- Workman

Versus

1. Comptroller & Auditor General of India, 10, Bahadur Shah Zafar Marg, New Delhi-110002.

(Deleted)

2. Principal Accountant General (Audit), Punjab, Plot No.20-21, Sector 17, Chandigarh-160017.

3. Accountant General (A&E), Punjab, Sector 17, Chandigarh-160017.

------Respondents

Present:-

Sh. Jagdeep Jaswal, AR for workman.

Sh. Barjesh Mittal, AR for respondent no.1 to 3.

AWARD : 22.04.2026

1.

Hon'ble High Court of Punjab and Haryana vide order dated 19.05.2025 passed in CWP No.26760 of 2019

titled as Bhag Singh and others versus Comptroller and Auditor General of India and others has referred this

matter under Section 10A of the Industrial Disputes Act, 1947 (hereinafter called the Act) to this Tribunal

observing that if applicant challenge his termination, the question of limitation shall not be gone into and the

Labour Court/Industrial Court shall examine their grievance in terms of Section 10A of the Act by taking

dispute directly. It is also made clear that the dismissal of appeal by the Central Administrative Tribunal shall

not come in the way. It is under these circumstances, the present petition has been filed by the workman

challenging his oral termination dated 02.05.2017.

2.

Brief facts of the case, as per claim statement of workman, are that the workman was employed as Casual

Labourer by the Respondent No.3 against the regular sanction post w.e.f. 01.02.2007 and has been

continuously working till 02.05.2017. Workman worked with the management continuously and completed

more than 240 days in the year 2016 and 2017. He has also worked 240 days preceding one year from the date

of his termination on 02.05.2017.

3.

Workman was engaged on the sanctioned posts through legal process and worked for more than 10 years, but

he was not granted temporary status despite of the instructions issued by Government of India dated

01.09.1993 on the ground that the said scheme was only for one time.

4.

As per the information received by the workman, still 28 posts of MTS are vacant in the office of respondent

No.3 against which, the workman was continuously working. Management outsourced the work of the

workman and removed the workman from his work. The respondent No.2 has ordered verbally not to report

for work on 02.05.2017, without giving any notice in writing. The workman orally requested the respondents

to regularize his services also in accordance with the rules and at par with the other Casual Labourers who has

been regularized or given temporary status. But instead of regularizing the services of the workman, the

respondent no.1 has outsourced the services through some contractors.

5.

Services of workman were dispensed with whereas, his juniors were retained in service, which was in violation

of Section 25H of the Act. It is further maintained that no compensation was given to the workman, which is in

9230

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

violation of Section 25F of the Act. Workman was eligible for regularization of his service as 28 posts of MTS

are lying vacant in the office of respondent no.3. Workman filed OA No.60/470/2017 dated 02.05.2017 in

Hon'ble Central Administrative Tribunal, Chandigarh (hereinafter called as CAT Chandigarh) and vide order

dated 03.05.2017, Hon'ble CAT, Chandigarh directed the respondent to allow the workman and others to

continue till 12.05.2017. The said OA was finally dismissed on 23.04.2019. Applicant also filed review

application, which was also dismissed on 22.08.2019. Workman challenged the said order before the Hon'ble

High Court by filing CWP No.26760/2019 and the matter was relegated to this Tribunal by the High Court.

Hon'ble Supreme Court in case titled as Jaggo V/s Union of India and others (2024 INSC 1034) held that

termination of casual employees working since long is unfair and they are to be regularized.

6.

It is maintained that the work performed by the workman is of perennial in nature. It is prayed that claim of the

workman may be allowed and oral termination dated 02.05.2017 may be declared illegal and arbitrary and

workman be reinstated back in service and deemed to be in service with all consequential benefits and be also

held entitled for full back wages from the date of his termination.

7.

Notice of petition was given to the respondents, who filed reply thereof maintaining therein that the workman

was engaged as casual worker for performing work on seasonal basis as per need and requirement of work by

office of respondent No.2 w.e.f. 2007 and performed duty for a period of 918 days upto 25.10.2011 on

intermittent basis. As per office records the payment to casual workers including the workman was being made

through Contingent Bill Register (2009-2010) under the Head "Wages' and the name of the workman finds

mentioned at Serial No.24 therein. The GOI DOPT OM dated 01.09.1993 providing for temporary

status/regularization categorically provided for conferment of temporary status on all casual labourers who

were in employment on the date of issue of OM and who have rendered a continuous service of at least one

year i.e. engaged for a period of 240 days. The workman has never completed a period of 240 days. The

workman is himself admitting to having been engaged in 2007 does not get covered under the said scheme

which was only for those casual labourers who were in employment on the date of issue of OM i.e.

01.09.1993. Hence, the submissions regarding grant of temporary status to the Workman is misconceived.

Moreover, in the previous litigations filed by the Workman before Hon'ble CAT Chandigarh Bench, the said

relief of temporary/regularization was never sought/pleaded by the Workman and earlier stage also.

8.

The regular post of MTS, if vacant/available, with the department shall be filled up on direct recruitment basis

to be conducted by SSC as per provisions of relevant Recruitment Rules. At earlier point of time, in pursuance

to advertisement dated 24.09.2011 for filling up the post of MTS on direct recruitment basis, the application of

workman belonging to General Category was duly considered and he was granted all the admissible

relaxations of age, period of his engagement as casual labourer etc. However, since he was overage by more

than 01 year 06 months and 29 days, even after grant of all admissible relaxation, his application was rejected

on account of being overage. The Workman assailed the said rejection of his candidature with respect to direct

recruitment by filing OA No.154/CH/2013 decided on 10.02.2014 before Hon'ble CAT Chandigarh which

stood dismissed.

9.

On the basis of recommendations of 6th CPC to the effect that Govt. is required to outsource certain activities

by providing employment in the form of contract labour and the said outsourcing would be discontinued when

the regular incumbents joined and the CAG Headquarter office in February-March 2017 had not considered

the funds/budget for making payment of wages/disbursement of salary to directly engaged daily wagers. Since

there was no scheme for regularization of services except for granting adequate relaxation for the period of his

engagement as Casual Labourer w.e.f. 01.02.2007 to 25.10.2011 as well as other admissible relaxations, prior

to filling up the post of MTS through direct recruitment, the service of workman could not have been

regularized and neither he could have been conferred with temporary status under the scheme being not in

employment during 1993.

10.

Workman is making contradictory statement in his claim statement. He is contending that his services have

been orally terminated w.e.f. 02.05.2017 and further he is also contending that he was replaced by other

individuals during 2013-2014. The non-assailing of his replacement by other individuals at the relevant time in

2013-2014 under the relevant provisions of the Act and availing his remedies before Ld. CAT and thereafter,

before Hon'ble High Court makes the present claim statement time barred by limitation by calculating the

period from 2013-2014 respectively.

11.

The workman himself sought discharge from services vide his application dated 01.08.2014. Had the letter

dated 01.08.2014 being fabricated document, the workman could have availed his legal remedies to prove the

said letter as fabricated one from competent court of law and neither any said contention was raised by him at

earlier point of time by making submissions qua the same in cases filed by workman before Hon'ble CAT/High

Court of Punjab and Haryana.

12.

Further, there is no scheme of regularization in the management department and the available post of MTS

shall be filled up on the basis of open competition/direct recruitment to be conducted by SSC strictly in terms

of Statutory Recruitment Rules for the post of MTS.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9231

13.

Workman has already availed his remedies after his disengagement by filing appropriate cases before Hon'ble

CAT Chandigarh Bench as well as Hon'ble Punjab and Haryana High Court and the present claim statement

filed by the Workman being misconceived and against the relevant provisions of rules and law, deserves to be

dismissed outrightly in the interest of justice.

14.

It is added here that AR for respondents moved an application for dropping the name of respondent no.1 from

the array of parties for the reasons mentioned in the application and AR for workman gave no objection and

application was allowed. However, in this case, all the respondents have jointly filed written statement.

Respondent no.1 is the controlling authority of respondent no.2 & 3 and thus was a formal party.

Evidence of workman:-

15.

In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit

Ex.WW1/A and has been cross examined by the AR for respondents. AR for workman closed the evidence on

15.04.2026.

List of documents:-

Sr. No.

Document

Dated

Exhibit/Mark

1.

Letter

Ex.WW1/1

2.

Work report

23.01.2013

Mark A

3.

Letter

17.03.2017

Mark B

4.

Letter

29.03.2017

Mark C

5.

Letter

10.04.2017

Mark D

6.

Letter

13.04.2017

Mark E

7.

Letter

25.04.2017

Mark F

8.

Order of Hon'ble CAT

03.05.2017

Mark G

9.

Order of Hon'ble High Court

19.05.2025

Mark H

10.

Summary of working days

Mark I

Evidence of respondents:-

16.

Respondent no.1 & 2 has examined Sh. Varinder Singh Saini, Assistant Account Officer, who tendered into

evidence his affidavit MW1/A and has been cross examined by AR for workman. AR for respondents closed

the evidence on 21.04.2026.

List of documents of respondents:-

Sr. No.

Document

Dated

Exhibit/Mark

1.

Details of litigations

Mark A

2.

Order of Hon'ble CAT

10.02.2014

Mark B

3.

Order of Hon'ble CAT

23.04.2019

Mark C

4.

Order of Hon'ble CAT

22.08.2019

Mark D

5.

Work report

23.01.2013

Mark F

Submissions of workman:-

17.

While arguing the case, ld. counsel for workman contended that in this case, workman was engaged as casual

labour by the respondent on regular sanctioned post w.e.f. 01.02.2007 and was continuously worked till

02.05.2017 for more than 10 years and was terminated verbally on 02.05.2017. Workman had completed 240

days preceding the year of his termination on 02.05.2017. Against the verbal termination order, workman

along with other workmen had gone in Hon'ble CAT, Chandigarh in OA No. 60/470/2017 challenging the

termination order and had also sought regularization, which was dismissed by the Hon'ble CAT, Chandigarh.

Thereafter, workman went in High Court and High Court vide order dated 19.05.2025 has relegated the matter

to this Tribunal. He further contended that since this Tribunal has been directed to dispose of the case in terms

of Section 10A of the Act. In this case workman had completed 240 days preceding the year of his termination

i.e. 02.05.2017, however, no compensation was given to him and there was violation of Section 25F of the Act.

Hence, he prayed that workman may be reinstated with back wages and all consequential benefits.

9232

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Submissions of respondents:-

18.

On the other hand, ld. counsel for respondents contended that in this case, workman was removed from service

due to non sending of wages under wages head by the head office of respondent no.1.Instructions were also

received from the Government of India that no direct appointment be made of casual employees and they may

be engaged through contractors. Moreover, the workman was gainfully employed after his termination. As per

order of Hon'ble High Court dated 19.05.2025 passed in CWP No.26760 of 2019, this Tribunal is not

competent to decide this matter.

Findings:-

19.

I have given due consideration to the arguments advanced by AR for both the parties.

20.

The first contention regarding the claimant is that whether he comes within the definition of „workman‟ as is

defined in Section 2(s) of the Act. I may mention that claimant was working as casual labour as per his claim

petition and affidavit submitted before the Tribunal. In plain words the claimant was performing his duties as

labourer/unskilled worker. He was not in supervisory or administrative post requiring him to perform only

administrative duties. While interpreting Section 2(s) Hon‟ble Supreme Court in the case of Devinder Singh

Vs. Municipal Council, Sanaur, AIR 2011 Supreme Court 2532, has observed as follows:-

“The source of employment, the quantum of recruitment, the terms & conditions of

employment/ contract of service, the quantum of wages/ pay and mode of payment

are not at all relevant for deciding whether or not a person is a workman within the

meaning of Section 2(s) of the Act. The definition of workman also does not make

any distinction between full time and part time employee or a person appointed on

contract basis. There is nothing in the plain language of Section 2(s) from which it

can be inferred that only person employed on regular basis or a person employed for

doing whole time job is a workman and the one employed on temporary, part time or

contract basis on fixed wages or as a casual employee or for doing duty for fixed

hours is not a workman.”

21.

Thus, Hon‟ble Supreme Court has clarified that the definition of workman also does not make any distinction

between full time or part time employee or a person appointed on contract basis. There is nothing in plain

language of Section 2(s) from which it can be infer that only person employed on regular basis or a person

employed for doing whole time job is a workman and the one employed on temporary, part time or contract

basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a workman. In view of the

ratio of law enunciated in the above ruling, in my considered opinion the claimant herein admittedly falls

within the definition of „workman‟ under Section 2(s) of the Act.

22.

Next question which arises for consideration is whether respondents are an industry. The Hon‟ble Apex Court

in the case of Banglore Water Supply & Sewerage Board Vs. A. Rajappa 1978(36) FLR 266 dealt at length

with the ambit and scope of expression “industry” as defined in Section 2(j) of the Act, and has laid down

triple test for determining whether a particular establishment is industry or not. The triple test is where (a)

systematic activity (b) organised by cooperation between employer and employee (the direct and substantial

element is commercial (c) for the production or distribution of goods and services to calculated to satisfy

human wants and wishes prima facie is an “Industry” in that enterprise. To support this view, reliance can be

placed on Banglore Water Supply & Sewerage Board (supra).

23.

In the present case, respondent is a government body and is engaged in systematic activity organized by

cooperation between employer and employee (employee being workman in the present case) and is covered

under the Act.

24.

Further, Hon'ble Supreme Court in case titled as Chief Conservator of Forest Versus Jagannath Maruti

Kondhare (1996 (2) SCT 164), has held that work, which was not be regarded as a part of inalienable of

inescapable function of the State and which work can be well undertaken by a private agency does not require

an instrumentality of State, such functions of the State fall within the ambit of Industry. Thus, function being

done by the respondents cannot be said to be sovereign function of the State and thus for this purpose of

industrial dispute, respondent would be termed as industry. Thus, respondents are industries for the purpose

they were engaging casual labour and thus functions cannot be said to be sovereign function of State.

25.

So far as this argument of Ld. counsel for respondents that this Tribunal is incompetent to entertain the ID case

under Section 10A of the Act. In this regard, it is pointed out that High Court vide its order dated 19.05.2025

passed in CWP No.26760 of 2019 has directed as under:-

If the writ petitioners challenge their termination, question of limitation shall not be gone into, and

the Labour Court/Industrial Court shall examine their grievances in terms of Section 10A of the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9233

Act, by taking up the dispute directly. If such an application is filed by the petitioners within period

of one month, the Labour Court/Industrial Court shall attempt to decide the same expeditiously,

preferably within a period of one month from today. It is made clear that the dismissal of appeal by

the Central Administrative Tribunal shall not come in their way.

Further, Section 10A of the Act read as follows:-

Voluntary reference of disputes to arbitration.—(1) Where any industrial dispute exists or

is apprehended and the employer and the workmen agree to refer the dispute to

arbitration, they may, at any time before the dispute has been referred under section 10 to

a Labour Court or Tribunal or National Tribunal, by a written agreement, refer the

dispute to arbitration and the reference shall be to such person or persons (including the

presiding officer of a Labour Court or Tribunal or National Tribunal) as an arbitrator or

arbitrators as may be specified in the arbitration agreement.

From co-joint reading of Section 10A of the Act and order of High Court dated 19.05.2025, it emerges

that High Court has referred this matter for adjudicating as arbitrator with the consent of both the parties.

Hence, the application under Section 10A is very much maintainable before this Tribunal.

26.

Next question is whether the workman has completed 240 days preceding one year from the date of his

termination on 02.05.2017. In this regard, it is pertinent to mention here that the workman has placed on

record, vide which he has worked 270 days prior to 02.05.2017 as per attendance register (Ex.WW1/1) and

summary of working days (Mark I) for the period May 2016 to May 2017. Even attendance register is on the

file. Hence, the workman is able to prove that he has worked for about 270 days preceding one year prior to his

termination on 02.05.2017. There is thus violation of Section 25F of the Act, which read as follows:-

Conditions precedent to retrenchment of workmen.—No workman employed in any

industry who has been in continuous service for not less than one year under an employer

shall be retrenched by that employer until—

(a) the workman has been given one month’s notice in writing indicating the reasons for

retrenchment and the period of notice has expired, or the workman has been paid in lieu of

such notice, wages for the period of the notice;

(b) the workman has been paid, at the time of retrenchment, compensation which shall be

equivalent to fifteen days' average pay for every completed year of continuous service or

any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such

authority as may be specified by the appropriate Government by notification in the Official

Gazette.

27.

Since in this case, applicant is workman as defined under the Act and was removed from service without

compliance of the Section 25F of the Act, which provide payment of retrenchment compensation as well as

wages in lieu of notice for the period of notice. Thus, due to breach of Section 25F of the Act, workman is

entitled for reinstatement. So far as violation of Section 25G and 25H is concerned, no evidence is given by the

workman regarding violation of Section 25G and 25H of the Act. Hence, it is deemed that applicant has failed

to prove violations of Sections 25G and 25H of the Act.

28.

Under these circumstances, the workman is reinstated into service. But so far as back wages are concerned,

workman was though working as labourer on daily wages intermittently as and when available and cannot be

said completely gainfully employed. Hence, he is entitled for 70% back wages. However, it is made clear that

in view of the instructions of Government of India that no casual employee can be taken directly by the

respondents, workman would continue to work with the respondents through contractor till attaining age of his

superannuation/retirement, even if contractor is changed as it is specific case of the workman in his application

before this Tribunal that work assigned to him is of perennial nature and there is no denial of this fact by the

respondents.

29.

As regards regularization of workman, no prayer is made by the AR for workman nor it was argued by the AR

for workman how the workman was entitled for regularization of his services.

30.

Let copy of this award be sent to Central Government for publication as required under Section 17 of the Act.

KAMAL KANT, Presiding Officer

9234

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1745.— औद्योनगक नववाद अनधननयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

पावर नग्रड कॉपोरेशन ऑफ़ इंनडया नलनमटेड; बलनवदर कुमार सैनी, के प्रबंधतंत्र के संबद्ध ननयोजकों और श्री ररकू कुमार के

बीर् अनुबंध में ननर्ददष्ट केन्द्रीय सरकार औद्योनगक अनधकरण एवं श्रम न्द्यायालय-2, र्ंडीगढ़, पंर्ाट (ररफरेन्द्स न.-

58/2020) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकानशत करती है जो केन्द्रीय सरकार को सॉफ्ट कॉपी के साथ

07.08.2026 को प्राप्त हुआ था l

[la

एल-42025/07/2026-219-आईआर(डीयू)]

सलोनी, उप ननदेशक

New Delhi, the 7th August, 2026

S.O. 1745.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 58/2020) of the Central Government Industrial Tribunal

cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Power Grid Cooperation of India Ltd; Balwinder Kumar Saini and Shri Rinku Kumar which was

received along with soft copy of the award by the Central Government on 07.08.2026.

[F. No. L-42025/07/2026-219-(IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh

(Presided over by Mr. Kamal Kant).

ID No.58/2020

Rinku Kumar S/o Sh. Suresh Pal R/o Gandhi Nagar, Tehsil Indri, District Karnal (Haryana).

-------- Workman

Versus

1.

The General manager, Power Grid Cooperation of India Ltd. 800 KV West North, Interconnector, HVDC

Project, House no.561, Sector 2, Near OP Jindal Chowk, Kurukshetra, District Kurukshetra (Haryana)

2.

Balwinder Kumar Saini, Government Contractor & Supplier, 50-E, Street No.4, Partap Nagar, Patiala, District

Patiala.

----Respondents

Present:- Sh. Ashok Kumar, AR for workman.

Respondent no.1 & 2 already ex parte.

Award : 03.06.2026

1.

The workman has filed the present claim statement directly under Section 2A of the Industrial Disputes Act,

1947 (hereinafter called as ID Act) against his termination dated 18.09.2018 claiming reinstatement in service

with full back wages, continuity of service and all consequential benefits.

2.

Brief facts of the case as per claim statement filed by the workman are that the workman was appointed as

Mali (Gardener) for the work of Horticulture maintenance by respondent no.1 through the contractor Arun

Tyagi on 22.04.2015 at the monthly wages of Rs.9000/- per month after deduction of ESI and PF etc.

Thereafter, the contract of the horticulture maintenance work was awarded to the respondent no.2 from

30.03.2016 to 15.05.2018 for two years and still respondent no.2 is having contract of work of horticulture

maintenance with respondent no.1. The workman remained in service till 18.09.2018 and his last wages were

Rs.10345/- after deductions. But the respondents paid only Rs.8991/- per month and due to this reason, the

workman objected the illegal deduction of salary and he made complaint to the GM and DGM and concerned

Incharge JE and they threatened him to terminate his services. Aggrieved by this, the workman along with

other workmen made a complaint in writing to the Labour Inspector and Labour Inspector made inspection on

the complaint. At this, respondents started to harass the workman ultimately, illegally terminate his services on

18.09.2018 by verbal order. He was not paid minimum wages as fixed by the Central Government from time to

time for the post of Mali (gardener) as skilled worker.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9235

3.

Aggrieved by order of termination, the workman filed a demand notice with Assistant Labour Commissioner

(Central), Labour Department Central Government, Karnal (hereinafter called as ALC Karnal) on 26.09.2018.

However, the conciliation proceedings failed and ALC Karnal issued a certificate to enable the workman to

approach this Tribunal.

4.

The workman along with other workers filed CWP No.35459 of 2019 titled as “Sanjay Kumar and others V/s

General Manager, Power Grid Corporation of India Ltd. and another” before the Hon'ble Punjab & Haryana

High Court and the same was disposed of with the liberty to approach the Labour Court vide order dated

21.01.2020.

5.

No charge sheet or inquiry or any notice before termination of services of the workman was ever served upon

the workman. No permission from Government was obtained for termination of services of the workman.

Before filing the demand notice, the workman requested many times for reinstatement into service, but all in

vain.

6.

The workman had worked more than 240 days in a year and his services have been terminated without

following the procedure prescribed under Section 25G, 25H and 25F of the Act. Many juniors to the workman

have been appointed by the respondents and even fresh appointments have been made by the respondents on

low wages, which is unfair labour practice. The workman is not gainfully employed after termination of his

services on 18.09.2018.

7.

The respondents have not issued any appointment letter, attendance slip, ESI card or any other document.

Neither the principal employer i.e. respondent no.1 has obtained license under Section 7 of the Abolition of

Labour Contract Act nor the contractor i.e. respondent no.2 is registered under Section 12 with the Central

Labour Department. Therefore, mode of payment is a mere camouflage just to deprive the workman from his

legal rights regarding regularization of the services with respondent no.1. No record has been maintained by

the respondent no.1 or respondent no.2 as per requirement of Section 29 of Contract Act. It is maintained that

the termination of workman w.e.f. 18.09.2018 is illegal and it is prayed that the workman may be reinstated in

service with full back wages, continuity of service and all consequential benefits.

8.

Notice of the claim petition was given to the respondents.

9.

Respondent no.1 filed reply to the claim petition maintaining therein that the workman was never appointed by

answering respondent. Respondent no.1 had awarded contract to respondent no.2 vide LOA dated 30.03.2016

(Maintenance of Horticulture work around the transit camp at 800 KV HVDC terminal at Kurukshetra) for the

duration of two years, further, one year extension and the said contract had expired with efflux of time and no

extension was granted. Thereafter, through detailed tendering process, the contract was again awarded to

respondent no.2 vide LOA dated 15.05.2018 for another two years with provision of one year extension. The

said contract expired in the month of May 2021.

10.

There is no employer employee relationship between workman and respondent no.1 as workmen was deployed

by contractor as per the provision of Contract and he is employee of the contractor, not of the respondent no.1

11.

Respondent no.1 vide letter dated 12.09.2018 addressed to respondent no.2, brought the shortcomings of

horticulture work in his attention by specifically pointing out that the manpower engaged/deployed by him i.e.

engaged Mali don't have the proper horticulture knowledge and advised respondent no 2 to improve the

shortcomings.

12.

The services of the workman were never terminated by respondent no.1 and due minimum wages were paid to

him as per the relevant provisions of contract in line with applicable laws.

13.

The workman was contract labour for respondent no.1 and never remained a direct employee of respondent

no.1. Further, the workman was under the direct supervision and control of respondent No.2 and salary to him

was being paid by respondent No.2. Therefore, question of violation of Section 25 F, 25 G and 25 H of the Act

does not arise qua respondent no.1 as no industrial dispute exists between the workman and respondent no.1.

14.

Respondent no.1 has duly registered its establishment u/s 7 of Contract Labour (Regulation and Abolition) Act

1970 and proper records have been maintained as per the statutory requirement of Section 29 of the said Act.

Being a central public sector enterprise, respondent no.1 always abides the labour compliance within the time

bound manner. It is prayed that the claim statement may be dismissed qua respondent no.1.

15.

Respondent no.2 also filed reply thereof maintaining therein that contract for the work "Maintenance of

Horticulture work around Transit Camp at 800 KV Terminal, Kurukshetra" for a period of 2 years with a

provision of further one year extension, was awarded through tendering process to respondent no.2 by

respondent No.1 vide its letter dated 31.03.2016 and the contract period of this work was closed on

15.05.2018. Thereafter new tender bid was opened on 19.04.2018 and further Contract for a period of 2 years

with one year extension provision was awarded by respondent no.1 vide its letter dated 15.05.2018 i.e. up to

9236

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

15.05.2020 and as per the terms of contract, it was extended for one year i.e. till 15.05.2021. Respondent No.2

has no work after the date of expiry of said extension with respondent no.1.

16.

Work and conduct of workman was poor and insolent. The workman abdicated his work many a times and in

view of this, respondent no.1, whose work was severally affected due to his deplorable and unsatisfactory

performance, addressed a letter dated 12.09.2018 to respondent no.2 and thereupon immediately, workman

was called to make amends in his duties and do the work in disciplined way, however, workman started

misbehaving and threatening. Taking into account the consistent misbehaving and insolent attitude of working,

respondent no.2 had no option, except to discontinue the services of workman. His termination was made

purely for unsatisfactory performance of duties workman.

17.

Due minimum wages were paid to the workman as per the relevant provisions of law and contract. The

workman has deliberately approached the Hon'ble High Court just to cause delay and harass respondent no.2,

despite the clear and precise direction of conciliation officer on dated 06.12.2018 to approach the Central

Government industrial cum Labour Court.

18.

The provisions of Contract Act are not applicable to respondent no.2, which mandates the issuance of

appointment letter and attendance slip. It is submitted that there is no violation of Section 25F, 25G and 25H of

the Act and it is prayed that the claim statement of workman may be dismissed with cost qua respondent no.2.

19.

Rejoinder was also filed on behalf of workman rebutting the facts of written statement.

Evidence of parties:-

20.

In order to prove his case, workman examined himself as W1 and tendered into evidence his affidavit

Ex.W1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence

on 23.08.2024.

Documents relied upon by the workman:-

Sr. No.

Document

Date

Ex.

1.

Letter

01.04.2016

W1/1

2.

Detail of manpower

01.04.2016

W1/2

3.

Letter to Govt. Contractor

12.09.2018

W1/3

4.

List

of

worker

submitted

by

contractor

W1/4

5.

Request by workman

27.04.2019

W1/5

6.

Request by workman to DC Karnal

W1/6

7.

Request to SDM Indri, Karnal

18.09.2018

W1/7

8.

Reply

31.10.2018

W1/8

9.

Reply

31.10.2018

W1/9

10.

Demand Notice

25.04.2019

W1/10

11.

Copy of Postal receipt

W1/11

12.

Certificate issued by respondent no.2

27.08.2018

W1/12

21.

It is pertinent to mention here that the respondent no.1 & 2 was proceeded ex parte on 13.10.2025 and the case

was fixed for ex parte arguments.

22.

I have heard ld. counsel for the workman and given due consideration to the arguments raised by the ld.

counsel for workman.

Findings:-

23.

The first contention regarding the applicant is that whether applicant comes within the definition of workman

as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as Mali (gardner) as per his

claim petition and affidavit submitted before the Tribunal. In plain words the applicant was performing his

duties as labourer/unskilled worker. He was not in supervisory or administrative post requiring him to perform

only administrative duties. While interpreting Section 2(s) Hon‟ble Supreme Court in the case of Devinder

Singh Vs. Municipal Council, Sanaur, AIR 2011 Supreme Court 2532, has observed as follows:-

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9237

“The source of employment, the quantum of recruitment, the terms & conditions of

employment/ contract of service, the quantum of wages/ pay and mode of payment are

not at all relevant for deciding whether or not a person is a workman within the

meaning of Section 2(s) of the Act. The definition of workman also does not make any

distinction between full time and part time employee or a person appointed on contract

basis. There is nothing in the plain language of Section 2(s) from which it can be

inferred that only person employed on regular basis or a person employed for doing

whole time job is a workman and the one employed on temporary, part time or contract

basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a

workman.”

24.

Thus Hon‟ble Supreme Court has clarified that the definition of workman also does not make any distinction

between full time or part time employee or a person appointed on contract basis. There is nothing in plain

language of Section 2(s) from which it can be infer that only person employed on regular basis or a person

employed for doing whole time job is a workman and the one employed on temporary, part time or contract

basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a workman. In view of the

ratio of law enunciated in the above ruling, in my considered opinion the applicant herein admittedly falls

within the definition of „workman‟ under Section 2(s) of the Act.

25.

The Hon‟ble Supreme Court after analyzing the catena of cases has laid down in Balwant Raj Saluja Vs. Air

India Limited in Civil Appeal No.10266 dated 25.08.2014, two well recognized tests to find out whether the

labours are the contract employees of the principal employer are:-

1) Whether the principal employer pays the salary instead of contractor and

2) Whether the principal employer controls and supervise the work of the employees?

26.

As regard the payment of salary to the workman, workman in his affidavit has mentioned that his salary was

paid by the contractor i.e. respondent no.2. Hence, it emerges that workman was paid salary by the contractor

and he was being controlled and supervised by the contractor. Thus, there does not exist any relationship of

employee and employer between the workman and respondent no.1. However, there exists relation of

employee and employer between the workman and respondent no.2.

27.

It is also added here that as per definition of contractor as given in the Section 2(c) of the Contract Labour

(Regulation and Abolition) Act, 1970 (hereinafter called as Contract Act), respondent no.2 was supplying

contract labour to the respondent no.1. Thus, respondent no.2 would fall under the definition of contractor.

Section 2(c) of the Contract Act is reproduced as under:

“Contractor”, in relation to an establishment, means a person who undertakes to

produce a given result for the establishment, other than a mere supply of goods or

articles of manufacture to such establishment, through contract labour or who supplies

contract labour for any work of the establishment and includes a sub-contractor;

28.

The Hon‟ble Apex Court in the case of Banglore Water Supply & Sewerage Board Vs. A. Rajappa 1978(36)

FLR 266 dealt at length with the ambit and scope of expression “industry” as defined in Section 2(j) of the

Act, and has laid down triple test for determining whether a particular establishment is industry or not. The

triple test is where (a) systematic activity (b) organized by cooperation between employer and employee (the

direct and substantial element is commercial (c) for the production or distribution of goods and services to

calculated to satisfy human wants and wishes prima facie is an “Industry” in that enterprise. The workman was

doing work i.e. systematic activity for respondent no.1 at the asking of respondent no.2 and there was

cooperation between the workman and respondent no.2, which involve substantial commercial element for

rendering service to satisfy human wants. Thus, respondent no.2 would be termed as industry.

29.

Workman in his affidavit has clearly stated that there was non-compliance of Section 25F, 25G and 25H of the

Act. He also stated that he was appointed on 22.04.2015 and was working with respondent no.1 through

contractor. He was not given any compensation before terminating his services on 18.09.2018. During the

cross examination, workman has stated that he cannot produce the account statement. But he has placed on

record certificate issued by respondent no.2, in which it is clearly mentioned that the workman was working

with it from 01.04.2016 till 15.05.2018 and the monthly salary of workman was Rs.14,476/- In Thus, workman

was employee of respondent no.2. There does not exist any relationship of employee and employer between

the workman and respondent no.1. However, there exists relation of employee and employer between the

workman and respondent no.2.

9238

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

30.

Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards

violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman.

Hence, workman is entitled for compensation from respondent no.2.

31.

So keeping in view the tenure of service rendered by the workman i.e. more than 3 years and salary given to

him during the period of his stay with the contractor and non-compliance of Section 25F of the Act, this

Tribunal is of the considered opinion that workman is entitled for compensation.

32.

Present workman employed on 22.04.2015 and was terminated on 18.09.2018 (more than 3 years), so he is

entitled as per law titled as Hemant Babruvahan Parchake versus Social Welfare Officer, Somalwar

Bhavan, Mount Road, Sadar, Nagpur and others AIR 2021 BOM 1760, wherein for 18 months, a sum of

Rs.25,000/- was granted as compensation, workman is granted for Rs.50,000/-. Respondent no.2 is directed to

pay the workman Rs.50,000/- within one month from the date of the notification of the award failing which the

respondent no.2 shall further pay interest @6% per annum from the date of award till the date of making

payment.

33.

Let copy of this award be sent to Central Government for publication as required under Section 17 of the Act.

KAMAL KANT, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1746.— औद्योनगक नववाद अनधननयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

पावर नग्रड कॉपोरेशन ऑफ़ इंनडया नलनमटेड; बलनवदर कुमार सैनी, के प्रबंधतंत्र के संबद्ध ननयोजकों और श्री सुनील कुमार

के बीर् अनुबंध में ननर्ददष्ट केन्द्रीय सरकार औद्योनगक अनधकरण एवं श्रम न्द्यायालय-2, र्ंडीगढ़, पंर्ाट (ररफरेन्द्स न.-

56/2020) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकानशत करती है जो केन्द्रीय सरकार को सॉफ्ट कॉपी के साथ

07.08.2026 को प्राप्त हुआ था l

[la

एल-42025/07/2026-218-आईआर(डीयू)]

सलोनी, उप ननदेशक

New Delhi, the 7th August, 2026

S.O. 1746.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 56/2020) of the Central Government Industrial Tribunal

cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Power Grid Cooperation of India Ltd; Balwinder Kumar Saini and Shri Sunil Kumar which was

received along with soft copy of the award by the Central Government on 07.08.2026.

[No. L-42025/07/2026-218-(IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh

(Presided over by Mr. Kamal Kant).

ID No.56/2020

Sunil Kumar S/o Sh. Sardara Ram, R/o Village Gandhi Nagar, Tehsil Indri, District Karnal (Haryana).

-------- Workman

Versus

1. The General manager, Power Grid Cooperation of India Ltd. 800 KV West North,

Interconnector, HVDC Project, House No.561, Sector 2, Near OP Jindal Chowk, Kurukshetra,

District Kurukshetra (Haryana).

2. Balwinder Kumar Saini, Government Contractor & Supplier, 50-E, Street No.4, Partap Nagar,

Patiala, Distt. Patiala.

----Respondents

Present:-

Sh. Ashok Kumar, AR for workman.

Respondent no.1 & 2 already ex parte.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9239

AWARD : 03.06.2026

1.

The workman has filed the present claim statement directly under Section 2A of the Industrial Disputes

Act, 1947 (hereinafter called as ID Act) against his termination dated 18.09.2018 claiming reinstatement

in service with full back wages, continuity of service and all consequential benefits.

2.

Brief facts of the case as per claim statement filed by the workman are that the workman was appointed

as Mali (Gardener) for the work of Horticulture maintenance by respondent no.1 through the contractor

Arun Tyagi on 22.04.2015 at the monthly wages of Rs.12000/- per month after deduction of ESI and PF

etc. Thereafter, the contract of the horticulture maintenance work was awarded to the respondent no.2

from 30.03.2016 to 15.05.2018 for two years and still respondent no.2 is having contract of work of

horticulture maintenance with respondent no.1. The workman remained in service till 18.09.2018 and

his last wages were Rs.13031/- after deductions. But the respondents paid only Rs.10300/- per month

and due to this reason, the workman objected the illegal deduction of salary and he made complaint to

the GM and DGM and concerned incharge JE and they threatened him to terminate his services.

Aggrieved by this, the workman along with other workmen made a complaint in writing to the Labour

Inspector and Labour Inspector made inspection on the complaint. At this, respondents started to harass

the workman ultimately, illegally terminate his services on 18.09.2018 by verbal order. He was not paid

minimum wages as fixed by the Central Government from time to time for the post of Mali (gardener)

as skilled worker.

3.

Aggrieved by order of termination, the workman filed a demand notice with Assistant Labour

Commissioner (Central), Labour Department Central Government, Karnal (hereinafter called as ALC

Karnal) on 26.09.2018. However, the conciliation proceedings failed and ALC Karnal issued a

certificate to enable the workman to approach this Tribunal.

4.

The workman along with other workers filed CWP No.35459 of 2019 titled as Sanjay Kumar and others

V/s General Manager, Power Grid Corporation of India Ltd. and another before the Hon'ble Punjab &

Haryana High Court and the same was dispose of with the liberty to approach the Labour Court vide

order dated 21.01.2020.

5.

No charge sheet or inquiry or any notice before termination of services of the workman was ever served

upon the workman. No permission from Government was obtained for termination of services of the

workman. Before filing the demand notice, the workman requested many times for reinstatement into

service, but all in vain.

6.

The workman had worked more than 240 days in a year and his services have been terminated without

following the procedure prescribed under Section 25G, 25H and 25F of the Act. Many juniors to the

workman have been appointed by the respondents and even fresh appointments have been made by the

respondents on low wages, which is unfair labour practice. The workman is not gainfully employed after

termination of his services on 18.09.2018.

7.

The respondents have not issued any appointment letter, attendance slip, ESI card or any other

document. Neither the principal employer i.e. respondent no.1 has obtained license under Section 7 of

the Abolition of Labour Contract Act nor the contractor i.e. respondent no.2 is registered under Section

12 with the Central Labour Department. Therefore, mode of payment is a mere camouflage just to

deprive the workman from his legal rights regarding regularization of the services with respondent no.1.

No record has been maintained by the respondent no.1 or respondent no.2 as per requirement of Section

29 of Contract Act. It is maintained that the termination of workman w.e.f. 18.09.2018 is illegal and it is

prayed that the workman may be reinstated in service with full back wages, continuity of service and all

consequential benefits.

8.

Notice of the claim petition was given to the respondents.

9.

Respondent no.1 filed reply to the claim petition maintaining therein that the workman was never

appointed by answering respondent. Respondent no.1 had awarded contract to respondent no.2 vide

LOA dated 30.03.2016 (Maintenance of Horticulture work around the transit camp at 800 KV HVDC

terminal at Kurukshetra) for the duration of two years, further, one year extension and the said contract

had expired with efflux of time and no extension was granted. Thereafter, through detailed tendering

process, the contract was again awarded to respondent no.2 vide LOA dated 15.05.2018 for another two

years with provision of one year extension. The said contract expired in the month of May 2021.

10.

There is no employer employee relationship between workman and respondent no.1 as workmen was

deployed by contractor as per the provision of Contract and he is employee of the contractor, not of the

respondent no.1

9240

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

11.

Respondent no.1 vide letter dated 12.09.2018 addressed to respondent no.2, brought the shortcoming of

horticulture work in his attention by specifically pointing out that the manpower engaged/deployed by

him i.e. engaged mali don't have the proper horticulture knowledge and advised respondent no 2 to

improve the shortcomings.

12.

The services of the workman were never terminated by respondent no.1 and due minimum wages were

paid to him as per the relevant provisions of contract in line with applicable laws.

13.

The workman was contract labour for respondent no.1 and was never remained a direct employee of

respondent no.1. Further, the workman was under the direct supervision and control of respondent No.2

and salary to him was being paid by respondent No.2. Therefore, question of violation of Section 25 F,

25 G and 25 H of the Act does not arise qua respondent no.1 as no industrial dispute exists between the

workman and respondent no.1.

14.

Respondent no.1 has duly registered its establishment u/s 7 of Contract Labour Regulation and

Abolition) Act 1970 and proper records have been maintained as per the statutory requirement of

Section 29 of the said Act. Being a central public sector enterprise, respondent no.1 always abides the

labour compliance within the time bound manner. It is prayed that the claim statement may be dismissed

qua respondent no.1.

15.

Respondent no.2 also filed reply thereof maintaining therein that contract for the work "Maintenance of

Horticulture work around Transit Camp at 800 KV Terminal, Kurukshetra" for a period of 2 years with a

provision of further one year extension, was awarded through tendering process to respondent no.2 by

respondent No.1 vide its letter dated 31.03.2016 and the contract period of this work was closed on

15.05.2018. Thereafter new tender bid was opened on 19.04.2018 and further Contract for a period of 2

years with one year extension provision was awarded by respondent no.1 vide its letter dated 15.05.2018

i.e. upto 15.05.2020 and as per the terms of contract, it was extended for one year i.e. till 15.05.2021.

Respondent No.2 have no work after the date of expiry of said extension with respondent no.1.

16.

Work and conduct of workman was poor and insolent. The workman abdicated his work many a times

and in view of this, respondent no.1, whose work was severally affected due to his deplorable and

unsatisfactory performance, addressed a letter dated 12.09.2018 to respondent no.2 and thereupon

immediately, workman was called to make amends in his duties and do the work in disciplined way,

however, workman started misbehaving and threatening. Taking into account the consistent

misbehaving and insolent attitude of working, respondent no.2 had no option, except to discontinue the

services of workman. His termination was made purely for unsatisfactory performance of duties

workman.

17.

Due minimum wages were paid to the workman as per the relevant provisions of law and contract. The

workman has deliberately approached the Hon'ble High Court just to cause delay and harass respondent

no.2, despite the clear and precise direction of conciliation officer on dated 06.12.2018 to approach the

Central Government industrial cum labour court.

18.

The provisions of Contract Act are not applicable to respondent no.2, which mandates the issuance of

appointment letter and attendance slip. It is submitted that there is no violation of Section 25F, 25G and

25H of the Act and it is prayed that the claim statement of workman may be dismissed with cost qua

respondent no.2.

19.

Rejoinder was also filed on behalf of workman rebutting the facts of written statement.

Evidence of parties:-

20.

In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit

Ex.WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the

evidence on 23.08.2024.

Documents relied upon by the workman:-

Sr. No.

Document

Date

Ex.

1.

Letter

01.04.2016

W1/1

2.

Detail of manpower

W1/2

3.

Letter to Govt. Contractor

12.09.2018

W1/3

4.

List of worker submitted by contractor

W1/4

5.

Request by workman

27.04.2019

W1/5

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9241

6.

Request by workman to DC Karnal

W1/6

7.

Request to SDM Indri, Karnal

18.09.2018

W1/7

8.

Reply

31.10.2018

W1/8

9.

Reply

31.10.2018

W1/9

10.

Demand Notice

25.04.2019

W1/10

11.

Copy of Postal receipt

W1/11

12.

Certificate issued by respondent no.2

27.07.2018

W1/12

21.

It is pertinent to mention here that the respondent no.1 & 2 was proceeded ex parte on 13.10.2025 and

the case was fixed for ex parte arguments.

22.

I have heard ld. counsel for the workman and given due consideration to the arguments raised by the ld.

counsel for workman.

Findings:-

23.

The first contention regarding the applicant is that whether applicant comes within the definition of

workman as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as Mali

(gardner) as per his claim petition and affidavit submitted before the Tribunal. In plain words the

applicant was performing his duties as labourer/unskilled worker. He was not in supervisory or

administrative post requiring him to perform only administrative duties. While interpreting Section 2(s)

Hon‟ble Supreme Court in the case of Devinder Singh Vs. Municipal Council, Sanaur, AIR 2011

Supreme Court 2532, has observed as follows:-

“The source of employment, the quantum of recruitment, the terms & conditions of

employment/ contract of service, the quantum of wages/ pay and mode of payment are

not at all relevant for deciding whether or not a person is a workman within the

meaning of Section 2(s) of the Act. The definition of workman also does not make any

distinction between full time and part time employee or a person appointed on contract

basis. There is nothing in the plain language of Section 2(s) from which it can be

inferred that only person employed on regular basis or a person employed for doing

whole time job is a workman and the one employed on temporary, part time or contract

basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a

workman.”

24.

Thus Hon‟ble Supreme Court has clarified that the definition of workman also does not make any

distinction between full time or part time employee or a person appointed on contract basis. There is

nothing in plain language of Section 2(s) from which it can be infer that only person employed on

regular basis or a person employed for doing whole time job is a workman and the one employed on

temporary, part time or contract basis on fixed wages or as a casual employee or for doing duty for fixed

hours is not a workman. In view of the ratio of law enunciated in the above ruling, in my considered

opinion the applicant herein admittedly falls within the definition of „workman‟ under Section 2(s) of

the Act.

25.

The Hon‟ble Supreme Court after analyzing the catena of cases has laid down in Balwant Raj Saluja

Vs. Air India Limited in Civil Appeal No.10266 dated 25.08.2014, two well recognized tests to find out

whether the labours are the contract employees of the principal employer are:-

1) Whether the principal employer pays the salary instead of contractor and

2) Whether the principal employer controls and supervise the work of the employees?

26.

As regard the payment of salary to the workman, workman in his affidavit has mentioned that his salary

was paid by the contractor i.e. respondent no.2. Hence, it emerges that workman was paid salary by the

contractor and he was being controlled and supervised by the contractor. Thus, there does not exist any

relationship of employee and employer between the workman and respondent no.1. However, there

exists relation of employee and employer between the workman and respondent no.2.

27.

It is also added here that as per definition of contractor as given in the Section 2(c) of the Contract

Labour (Regulation and Abolition) Act, 1970 (hereinafter called as Contract Act), respondent no.2 was

9242

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

supplying contract labour to the respondent no.1. Thus, respondent no.2 would fall under the definition

of contractor. Section 2(c) of the Contract Act is reproduced as under:

“Contractor”, in relation to an establishment, means a person who undertakes to produce a

given result for the establishment, other than a mere supply of goods or articles of

manufacture to such establishment, through contract labour or who supplies contract labour

for any work of the establishment and includes a sub-contractor;

28.

The Hon‟ble Apex Court in the case of Banglore Water Supply & Sewerage Board Vs. A. Rajappa

1978(36) FLR 266 dealt at length with the ambit and scope of expression “industry” as defined in

Section 2(j) of the Act, and has laid down triple test for determining whether a particular establishment

is industry or not. The triple test is where (a) systematic activity (b) organized by cooperation between

employer and employee (the direct and substantial element is commercial (c) for the production or

distribution of goods and services to calculated to satisfy human wants and wishes prima facie is an

“Industry” in that enterprise. The workman was doing work i.e. systematic activity for respondent no.1

at the asking of respondent no.2 and there was cooperation between the workman and respondent no.2,

which involve substantial commercial element for rendering service to satisfy human wants. Thus,

respondent no.2 would be termed as industry.

29.

Workman in his affidavit has clearly stated that there was non-compliance of Section 25F, 25G and 25H

of the Act. He also stated that he was appointed on 22.04.2015 and was working with respondent no.1

through contractor. He was not given any compensation before terminating his services on 18.09.2018.

During the cross examination, workman has stated that he cannot produce the account statement. But he

has placed on record certificate issued by respondent no.2, in which it is clearly mentioned that the

workman was working with it from 01.04.2016 till 15.05.2018 and the monthly salary of workman was

Rs.14,476/- In Thus, workman was employee of respondent no.2. There does not exist any relationship

of employee and employer between the workman and respondent no.1. However, there exists relation of

employee and employer between the workman and respondent no.2.

30.

Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards

violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the

workman. Hence, workman is entitled for compensation from respondent no.2.

31.

So keeping in view the tenure of service rendered by the workman i.e. more than 3 years and salary

given to him during the period of his stay with the contractor and non-compliance of Section 25F of the

Act, this Tribunal is of the considered opinion that workman is entitled for compensation.

32.

Present workman employed on 22.04.2015 and was terminated on 18.09.2018 (more than 3 years), so he

is entitled as per law titled as Hemant Babruvahan Parchake versus Social Welfare Officer,

Somalwar Bhavan, Mount Road, Sadar, Nagpur and others AIR 2021 BOM 1760, wherein for 18

months, a sum of Rs.25,000/- was granted as compensation, workman is granted for Rs.50,000/-.

Respondent no.2 is directed to pay the workman Rs.50,000/- within one month from the date of the

notification of the award failing which the respondent no.2 shall further pay interest @6% per annum

from the date of award till the date of making payment.

33.

Let copy of this award be sent to Central Government for publication as required under Section 17 of

the Act.

KAMAL KANT, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1747.—औद्योनगक नववाद अनधननयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

पावर नग्रड कॉपोरेशन ऑफ़ इंनडया नलनमटेड; बलनवदर कुमार सैनी, श्री परवीन कुमार के प्रबंधतंत्र के संबद्ध ननयोजकों

और श्री पुरुषोत्तम नसह के बीर् अनुबंध में ननर्ददष्ट केन्द्रीय सरकार औद्योनगक अनधकरण एवं श्रम न्द्यायालय-2, र्ंडीगढ़,

पंर्ाट (ररफरेन्द्स न.- 54/2020) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकानशत करती है जो केन्द्रीय सरकार को

सॉफ्ट कॉपी के साथ 07.08.2026 को प्राप्त हुआ था l

[la

एल-42025/07/2026-217-आईआर(डीयू)]

सलोनी, उप ननदेशक

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9243

New Delhi, the 7th August, 2026

S.O. 1747.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 54/2020) of the Central Government Industrial Tribunal

cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Power Grid Cooperation of India Ltd; Balwinder Kumar Saini and Shri Parveen Kumar which was

received along with soft copy of the award by the Central Government on 07.08.2026.

[No. L-42025/07/2026-217-(IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh

(Presided over by Mr. Kamal Kant).

ID No.54/2020

Parveen Kumar S/o Sh. Sardara Ram R/o Gandhi Nagar, Tehsil Indri, District Karnal (Haryana).

-------- Workman

Versus

1.

The General manager, Power Grid Cooperation of India Ltd. 800 KV West North, Interconnector, HVDC

Project, House no.561, Sector 2, Near OP Jindal Chowk, Kurukshetra, District Kurukshetra (Haryana)

2.

Balwinder Kumar Saini, Government Contractor & Supplier, 50-E, Street No.4, Partap Nagar, Patiala, Distt.

Patiala.

----Respondents

Present:- Sh. Ashok Kumar, AR for workman.

Respondent no.1 & 2 already ex parte.

AWARD : 03.06.2026

1.

The workman has filed the present claim statement directly under Section 2A of the Industrial Disputes Act,

1947 (hereinafter called as ID Act) against his termination dated 18.09.2018 claiming reinstatement in service

with full back wages, continuity of service and all consequential benefits.

2.

Brief facts of the case as per claim statement filed by the workman are that the workman was appointed as

Mali (Gardener) for the work of Horticulture maintenance by respondent no.1 through respondent No. 2 on

01.04.2016 at the monthly wages of Rs.11300/- per month after deduction of ESI and PF etc. Still respondent

no.2 is having contract of work of horticulture maintenance with respondent no.1. The workman remained in

service till 18.09.2018 and his last wages were Rs.10345/- after deductions. But the respondents paid only

Rs.8991/- per month and due to this reason, the workman objected the illegal deduction of salary and he made

complaint to the GM and DGM and concerned Incharge JE and they threatened him to terminate his services.

Aggrieved by this, the workman along with other workmen made a complaint in writing to the Labour

Inspector and Labour Inspector made inspection on the complaint. At this, respondents started to harass the

workman ultimately, illegally terminated his services on 18.09.2018 by verbal order. He was not paid

minimum wages as fixed by the Central Government from time to time for the post of Mali (gardener) as

skilled worker.

3.

Aggrieved by order of termination, the workman filed a demand notice with Assistant Labour Commissioner

(Central), Labour Department Central Government, Karnal (hereinafter called as ALC Karnal) on 26.09.2018.

However, the conciliation proceedings failed and ALC Karnal issued a certificate to enable the workman to

approach this Tribunal.

4.

The workman along with other workers filed CWP No.35459 of 2019 titled as “Sanjay Kumar and others V/s

General Manager, Power Grid Corporation of India Ltd. and another” before the Hon'ble Punjab & Haryana

High Court and the same was disposed of with the liberty to approach the Labour Court vide order dated

21.01.2020.

5.

No charge sheet or inquiry or any notice before termination of services of the workman was ever served upon

the workman. No permission from Government was obtained for termination of services of the workman.

Before filing the demand notice, the workman requested many times for reinstatement into service, but all

in vain.

9244

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

6.

The workman had worked more than 240 days in a year and his services have been terminated without

following the procedure prescribed under Section 25G, 25H and 25F of the Act. Many juniors to the workman

have been appointed by the respondents and even fresh appointments have been made by the respondents on

low wages, which is unfair labour practice. The workman is not gainfully employed after termination of his

services on 18.09.2018.

7.

The respondents have not issued any appointment letter, attendance slip, ESI card or any other document.

Neither the principal employer i.e., respondent no.1 has obtained license under Section 7 of the Abolition of

Labour Contract Act nor the contractor i.e., respondent no.2 is registered under Section 12 with the Central

Labour Department. Therefore, mode of payment is a mere camouflage just to deprive the workman from his

legal rights regarding regularization of the services with respondent no.1. No record has been maintained by

the respondent no.1 or respondent no.2 as per requirement of Section 29 of Contract Act. It is maintained that

the termination of workman w.e.f. 18.09.2018 is illegal and it is prayed that the workman may be reinstated in

servicewith full back wages, continuity of service and all consequential benefits.

8.

Notice of the claim petition was given to the respondents.

9.

Respondent no.1 filed reply to the claim petition maintaining therein that the workman was never appointed by

answering respondent. Respondent no.1 had awarded contract to respondent no.2 vide LOA dated 30.03.2016

(Maintenance of Horticulture work around the transit camp at 800 KV HVDC terminal at Kurukshetra) for the

duration of two years, further, one year extension and the said contract had expired with efflux of time and no

extension was granted. Thereafter, through detailed tendering process, the contract was again awarded to

respondent no 2 vide LOA dated 15.05.2018 for another two years with provision of one year extension. The

said contract expired in the month of May 2021.

10.

There is no employer-employee relationship between workman and respondent no.1 as workmen was deployed

by contractor as per the provision of Contract and he is employee of the contractor, not of the respondent no.1

11.

Respondent no.1 vide letter dated 12.09.2018 addressed to respondent no.2, brought the shortcoming of

horticulture work in his attention by specifically pointing out that the manpower engaged/deployed by him i.e.

engaged Mali don't have the proper horticulture knowledge and advised respondent no.2 to improve the

shortcomings.

12.

The services of the workman were never terminated by respondent no.1 and due minimum wages were paid to

him as per the relevant provisions of contract in line with applicable laws.

13.

The workman was contract labour for respondent no.1 and never remained a direct employee of respondent

no.1. Further, the workman was under the direct supervision and control of respondent No.2 and salary to him

was being paid by respondent No.2. Therefore, question of violation of Section 25 F, 25 G and 25 H of the Act

does not arise qua respondent no.1 as no industrial dispute exists between the workman and respondent no.1.

14.

Respondent no.1 has duly registered its establishment u/s 7 of Contract Labour Regulation and Abolition) Act

1970 and proper records have been maintained as per the statutory requirement of Section 29 of the said Act.

Being a central public sector enterprise, respondent no.1 always abides the labour compliance within the time

bound manner. It is prayed that the claim statement may be dismissed qua respondent no.1.

15.

Respondent no.2 also filed reply thereof maintaining therein that contract for the work "Maintenance of

Horticulture work around Transit Camp at 800 KV Terminal, Kurukshetra" for a period of 2 years with a

provision of further one year extension, was awarded through tendering process to respondent no.2 by

respondent No.1 vide its letter dated 31.03.2016 and the contract period of this work was closed on

15.05.2018. Thereafter new tender bid was opened on 19.04.2018 and further Contract for a period of 2 years

with one year extension provision was awarded by respondent no.1 vide its letter dated 15.05.2018 i.e. upto

15.05.2020 and as per the terms of contract, it was extended for one year i.e. till 15.05.2021. Respondent No.2

has no work after the date of expiry of said extension with respondent no.1.

16.

Work and conduct of workman was poor and insolent. The workman abdicated his work many a times and in

view of this, respondent no.1, whose work was severally affected due to his deplorable and unsatisfactory

performance, addressed a letter dated 12.09.2018 to respondent no.2 and thereupon immediately, workman

was called to make amends in his duties and do the work in disciplined way, however, workman started

misbehaving and threatening. Taking into account the consistent misbehaving and insolent attitude of

working,respondent no.2 had no option, except to discontinue the services of workman. His termination was

made purely for unsatisfactory performance of duties workman.

17.

Due minimum wages were paid to the workman as per the relevant provisions of law and contract. The

workman has deliberately approached the Hon'ble High Court just to cause delay and harass respondent no.2,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 19478

9245

despite the clear and precise direction of conciliation officer on dated 06.12.2018 to approach the Central

Government Industrial cum Labour Court.

18.

The provisions of Contract Act are not applicable to respondent no.2, which mandates the issuance of

appointment letter and attendance slip. It is submitted that there is no violation of Section 25F, 25G and 25H of

the Act and it is prayed that the claim statement of workman may be dismissed with cost qua respondent no.2.

19.

Rejoinder was also filed on behalf of workman rebutting the facts of written statement.

Evidence of parties:-

20.

In order to prove his case, workman examined himself as W1 and tendered into evidence his affidavit

Ex.W1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence

on 23.08.2024.

Documents relied upon by the workman:-

Sr. No.

Document

Date

Ex.

1.

Letter

01.04.2016

W1/1

2.

Detail of manpower

01.04.2016

W1/2

3.

Letter to Govt. Contractor

12.09.2018

W1/3

4.

List

of

worker

submitted

by

contractor

W1/4

5.

Request by workman

27.04.2019

W1/5

6.

Request by workman to DC Karnal

W1/6

7.

Request to SDM Indri, Karnal

18.09.2018

W1/7

8.

Reply

31.10.2018

W1/8

9.

Reply

31.10.2018

W1/9

10.

Demand Notice

25.04.2019

W1/10

11.

Copy of Postal receipt

W1/11

12.

Certificate issued by respondent no.2

27.08.2018

W1/12

21.

It is pertinent to mention here that the respondent no.1 & 2 was proceeded ex parte on 13.10.2025 and the case

was fixed for ex parte arguments.

22.

I have heard ld. counsel for the workman and given due consideration to the arguments raised by the ld.

counsel for workman.

Findings:-

23.

The first contention regarding the applicant is that whether applicant comes within the definition of workman

as is defined in Section 2(s) of the Act. I may mention that applicant was appointed as Mali (gardner) as per his

claim petition and affidavit submitted before the Tribunal. In plain words the applicant was performing his

duties as labourer/unskilled worker. He was not in supervisory or administrative post requiring him to perform

only administrative duties. While interpreting Section 2(s) Hon‟ble Supreme Court in the case of Devinder

Singh Vs. Municipal Council, Sanaur, AIR 2011 Supreme Court 2532, has observed as follows:-

“The source of employment, the quantum of recruitment, the terms & conditions of

employment/ contract of service, the quantum of wages/ pay and mode of payment are

not at all relevant for deciding whether or not a person is a workman within the

meaning of Section 2(s) of the Act. The definition of workman also does not make any

distinction between full time and part time employee or a person appointed on contract

basis. There is nothing in the plain language of Section 2(s) from which it can be

inferred that only person employed on regular basis or a person employed for doing

whole time job is a workman and the one employed on temporary, part time or contract

basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a

workman.”

24.

Thus Hon‟ble Supreme Court has clarified that the definition of workman also does not make any distinction

between full time or part time employee or a person appointed on contract basis. There is nothing in plain

language of Section 2(s) from which it can be infer that only person employed on regular basis or a person

employed for doing whole time job is a workman and the one employed on temporary, part time or contract

basis on fixed wages or as a casual employee or for doing duty for fixed hours is not a workman. In view of the

ratio of law enunciated in the above ruling, in my considered opinion the applicant herein admittedly falls

within the definition of „workman‟ under Section 2(s) of the Act.

9246

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

25.

The Hon‟ble Supreme Court after analyzing the catena of cases has laid down in Balwant Raj Saluja Vs. Air

India Limited in Civil Appeal No.10266 dated 25.08.2014, two well recognized tests to find out whether the

labours are the contract employees of the principal employer are:-

1) Whether the principal employer pays the salary instead of contractor and

2) Whether the principal employer controls and supervise the work of the employees?

26.

As regard the payment of salary to the workman, workman in his affidavit has mentioned that his salary was

paid by the contractor i.e. respondent no.2. Hence, it emerges that workman was paid salary by the contractor

and he was being controlled and supervised by the contractor. Thus, there does not exist any relationship of

employee and employer between the workman and respondent no.1. However, there exists relation of

employee and employer between the workman and respondent no.2.

27.

It is also added here that as per definition of contractor as given in the Section 2(c) of the Contract Labour

(Regulation and Abolition) Act, 1970 (hereinafter called as Contract Act), respondent no.2 was supplying

contract labour to the respondent no.1. Thus, respondent no.2 would fall under the definition of contractor.

Section 2(c) of the Contract Act is reproduced as under:

“Contractor”, in relation to an establishment, means a person who undertakes to

produce a given result for the establishment, other than a mere supply of goods or

articles of manufacture to such establishment, through contract labour or who supplies

contract labour for any work of the establishment and includes a sub-contractor;

28.

The Hon‟ble Apex Court in the case of Banglore Water Supply & Sewerage Board Vs. A. Rajappa 1978(36)

FLR 266 dealt at length with the ambit and scope of expression “industry” as defined in Section 2(j) of the

Act, and has laid down triple test for determining whether a particular establishment is industry or not. The

triple test is where (a) systematic activity (b) organized by cooperation between employer and employee (the

direct and substantial element is commercial (c) for the production or distribution of goods and services to

calculated to satisfy human wants and wishes prima facie is an “Industry” in that enterprise. The workman was

doing work i.e. systematic activity for respondent no.1 at the asking of respondent no.2 and there was

cooperation between the workman and respondent no.2, which involve substantial commercial element for

rendering service to satisfy human wants. Thus, respondent no.2 would be termed as industry.

29.

Workman in his affidavit has clearly stated that there was non-compliance of Section 25F, 25G and 25H of the

Act. He also stated that he was appointed on 22.04.2015 and was working with respondent no.1 through

contractor. He was not given any compensation before terminating his services on 18.09.2018. During the

cross examination, workman has stated that he cannot produce the account statement. But he has placed on

record certificate issued by respondent no.2, in which it is clearly mentioned that the workman was working

with it from 01.04.2016 till 15.05.2018 and the monthly salary of workman was Rs.14,476/- In Thus, workman

was employee of respondent no.2. There does not exist any relationship of employee and employer between

the workman and respondent no.1. However, there exists relation of employee and employer between the

workman and respondent no.2.

30.

Admittedly, there is non-compliance of Section 25F of the Act by respondent no.2. However, as regards

violation of other provisions i.e. Section 25G and 25H of the Act, there is no evidence lead by the workman.

Hence, workman is entitled for compensation from respondent no.2.

31.

So keeping in view the tenure of service rendered by the workman i.e. more than 3 years and salary given to

him during the period of his stay with the contractor and non-compliance of Section 25F of the Act, this

Tribunal is of the considered opinion that workman is entitled for compensation.

32.

Present workman employed on 22.04.2015 and was terminated on 18.09.2018 (more than 3 years), so he is

entitled as per law titled as Hemant Babruvahan Parchake versus Social Welfare Officer, Somalwar

Bhavan, Mount Road, Sadar, Nagpur and others AIR 2021 BOM 1760, wherein for 18 months, a sum of

Rs.25,000/- was granted as compensation, workman is granted for Rs.50,000/-. Respondent no.2 is directed to

pay the workman Rs.50,000/- within one month from the date of the notification of the award failing which the

respondent no.2 shall further pay interest @6% per annum from the date of award till the date of making

payment.

33.

Let copy of this award be sent to Central Government for publication as required under Section 17 of the Act.

KAMAL KANT, Presiding Officer

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9247

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1748.—औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

इंगस्िट्यूि ऑफ़ गहमालयन बायोररसोसस िेक्नोलॉजी; ओम प्रकाश के प्रबंधतंत्र के संबद्ध गनयोजकों और श्री पुरुषोत्तम ससह के

बीच अनुबंध में गनर्ददष्ट केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-2, चंडीगढ़, पंचाि (ररफरेन्द्स

न.- 44/2019) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है जो केन्द्रीय सरकार को सॉफ्ि कॉपी के साथ

07.08.2026 को प्राप्त हुआ था l

[la

एल-42025/07/2026-170-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1748.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 44/2019) of the Central Government Industrial Tribunal

cum Labour Court-2, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Institute of Himalayan Bioresource Technology; Om Prakash and Shri Purshotam Singh which was

received along with soft copy of the award by the Central Government on 07.08.2026.

[No. L-42025/07/2026-170-(IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-II, Chandigarh

(Present:- Mr. Kamal Kant, Presiding Officer)

ID No.44/2019

Purshotam Singh S/o Sh. Kali Das through R K Singh Parmar, General Secretary Punjab INTUC L-211 Brari

PO Partap Nagar, Nangal, Tehsil Nangal, District Rupnagar (Punjab).

-------- Workman

Versus

1. Director Institute of Himalayan Bioresource Technology, (CSIR Complex) Palampur, District Kangra,

Himachal Pradesh.

2. Om Parkash (Govt. Contractor) S/o Sh. Dumnoo Ram, R/o VPO Kandral, Tehsil Bajinath, District

Kangra, Himachal Pradesh.

------Respondents

Present:-

Sh. R P Rana, AR for workman.

Sh. G S Sidhu, AR for respondent no.1.

Respondent no.2 already ex parte.

Award : 23.04.2026

1.

Workman has filed the present petition/complaint under Section 33 of the Industrial Disputes Act, 1947

(hereinafter called the Act) against his termination by respondent no.1 & 2 on 28.11.2024.

2.

The brief facts, related to the case are that the workman was terminated orally by respondents on

28.11.2014 during the pendency of the main reference bearing no.255 of 2013 contravening Section 33 of the

Act. It is prayed that termination be set aside and appropriate order be passed.

3.

Notice of complaint was given to the respondents.

4.

Respondent no.1 filed reply thereof maintaining therein that the workman was never employed by

respondent no.1 and no master and servant relation exists between respondent no.1 and the workman.

Workman was deployed by respondent no.2 as a part of the man-force for executing the work in terms of the

agreement dated 18.07.2013 which expired in July, 2014 and thereafter no further contract was awarded to

respondent no.2 nor any man-force has been deployed. The respondent No.2 had been paid the bills submitted

by him, in terms of the agreement with him. Termination of service of the workman is on the part of

respondent No.2 i.e. contractor. In any case, since the workman was never employed in the service of

respondent no.1, the question of violation of any service condition during the pendency of the reference

No.255 2013 does not arise against respondent no.1. It is prayed that the application may be rejected against

respondent no.1.

9248

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

5.

It is pertinent to mention here that respondent no.2 was proceeded ex parte on 26.02.2020.

Evidence of parties:-

6.

In order to prove his case, workman examined himself as WW1 and tendered into evidence his affidavit

Ex.WW1/A and has been cross examined by the AR for respondent no.1. AR for workman closed the evidence

on 22.01.2025.

7.

List of documents, original exhibited with ID No.85/2015 Bir Singh Vs IHBT, photocopy placed in

file:-

Sr. No.

Document

Dated

Exhibit

1.

Bill

24.05.2013

Ex.W-1

2.

Bill

22.03.2021

Ex.W-2

3.

Bill

22.03.2021

Ex.W-3

4.

Bill

22.07.2010

Ex.W-4

5.

Bill

23.03.2007

Ex.W-5

6.

Bill

28.03.2007

Ex.W-6

7.

Bill

07.09.2010

Ex.W-7

8.

Respondent no.1 has examined Sh. Shankar Das, Controller of Administration, CSIR-IHBT, Palampur

Palampur as RW1, who tendered into evidence his affidavit RW1/A along with documents RW-1/1 and has

been cross examined by AR for workman. AR for respondent no.1 closed the evidence on 08.01.2026.

List of documents:-

Sr.

No.

Agreement

Dated

Period

1. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

24.05.1996

13.03.1996 to

12.03.1997

2. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.06.1998

01.09.1997 to

31.08.1998

3. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.06.1998

15.04.1998 to

14.04.1999

4. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.06.1998

16.04.1998 to

15.04.1999

5. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.05.1999

01.04.1999 to

31.03.2000

6. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

05.05.1999

01.05.1999 to

30.04.2000

7. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

28.07.2000

01.07.2000 to

30.06.2001

8. Agreement with M/s Om Prakash Kapoor (Ex.RW-

1/1 Colly)

08.07.2001

16.07.2001 to

15.07.2002

9. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.07.2001

16.07.2001 to

15.07.2002

10. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.07.2001

16.07.2001 to

15.07.2002

11. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

10.03.2004

10.02.2004 to

09.08.2004

12. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

10.03.2004

10.02.2004 to

09.08.2004

13. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

10.03.2004

10.02.2004 to

09.08.2004

14. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

10.03.2004

10.02.2004 to

09.08.2004

15. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

22.03.2004

12.02.2004 to

11.08.2004

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9249

16. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

22.03.2004

12.02.2004 to

11.08.2004

17. Letter (Part of Ex.RW-1/1 Colly)

06.06.2005

06.06.2005 to

05.12.2005

18. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/2)

06.06.2005

06.06.2005 to

05.12.2005

19. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

06.06.2005

06.06.2005 to

05.12.2005

20. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

06.06.2005

06.06.2005 to

05.12.2005

21. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

06.06.2005

06.06.2005 to

05.12.2005

22. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.10.2008

06.10.2008 to

05.10.2009

23. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.10.2008

06.10.2008 to

05.10.2009

24. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

16.10.2008

06.10.2008 to

05.10.2009

25. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

07.01.2010

07.01.2010 to

06.01.2012

26. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

07.12.2010

07.12.2010 to

06.12.2012

27. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

07.12.2010

07.12.2010 to

06.12.2012

28. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

07.12.2010

07.12.2010 to

06.12.2012

29. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

09.12.2012

09.12.2012 to

08.12.2014

30. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

19.12.2012

19.12.2012 to

18.12.2014

31. Agreement with M/s Om Prakash Kapoor (Part of

Ex.RW-1/1 Colly)

19.12.2012

19.12.2012 to

18.12.2014

Submissions of workman:-

9.

While arguing the case, AR for workman contended that in this case, reference was pending before this

Tribunal bearing ID No.255 of 2013 titled as The General Secretary, Institute of Himalayan Bio-Source

Technology (CSIR) Shramik Sangh, Palampur, Distt. Kangra versus The Director, Himalayan Bio-source

Technology (CSIR) regarding regularization of service and accepting all other demands raised by union of

workers, of which present workman is also a party. During the pendency of that reference, workman was

removed from service orally on 28.11.2014 by respondent no.2 without seeking permission from this Court

under Section 33(2)(b) of the Act, which is illegal. Workman would be deemed to be in the service of

respondent no.1. He further contended that in this case, respondent no.2 was allotted contract by respondent

no.1 for the period 19.12.2012 to 18.12.2014. However, the said period was reduced to 30.11.2014 and the

workman was paid salary upto 28.11.2014 and on that date, his services were dispensed with. He thus

contended that the workman is liable to be reinstated into service.

Submissions of respondent no.1:-

10.

While arguing the case, AR for respondent no.1 contended that IHBT i.e. respondent no.1 being

subsidiary of CSIR is not covered under the definition of Industry as defined under the Act. To support this

view, he place reliance upon Central Institute of Medicinal and Aromatic Plants and others versus Sri Rishi

Dev Mishra and other (Writ –C No.1005010 of 2006).

11.

He further contended that there is no master and servant relation between respondent no.1 and the

workman. To support this view, he placed reliance upon The Joint Secretary, Central Board of Secondary

education and another versus Raj Kumar Mishra and another (SLP (C) No.22030 of 2023. He further

placed reliance upon Kirlosker Brothers Ltd. Vs. Ramcharan and others (2022 INSC 1255). He further

contended that CSIR Service Rules are not applicable to the workman. No appointment letter was given to the

workman. He thus contended that the complaint be dismissed.

Findings:-

12.

I have given due consideration to the arguments advanced by Sh. R P Rana (AR for workman), Sh.

G S Sidhu (AR for respondent no.1).

9250

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

13.

First question which arise for consideration is whether the applicant is workman as defined under

Section 2(s) of the Act. To my mind, the claimant is a workman within the definition of Section 2(s) of the

Act. In this regard, reliance can be made to the decision in the case of Devinder Singh Vs. Municipal Council,

Sanaur, AIR 2011 Supreme Court 2532, wherein the Hon'ble Apex Court while interpreting the provisions of

Section 2(s) of the Act which deals with the definition of "workman" has observed as under :

"The source of employment, the quantum of recruitment, the terms & conditions

of employment/ contract of service, the quantum of wages/ pay and mode of

payment are not at all relevant for deciding whether or not a person is a workman

within the meaning of Section 2(s) of the Act. The definition of workman also does

not make any distinction between full time and part time employee or a person

appointed on contract basis. There is nothing in the plain language of Section

2(s) from which it can be inferred that only person employed on regular basis or

a person employed for doing whole time job is a workman and the one employed

on temporary, part time or contract basis on fixed wages or as a casual employee

or for doing duty for fixed hours is not a workman.”

It is clear from the perusal of aforesaid observations that even if a person is engaged on temporary, part

time or contract basis or for doing any other kind of work and is duly paid wages for the said work, in that

eventuality such a person would be covered by the definition of "workman" as provided in Section 2(s) of the

Act. Thus, nature of appointment or source of appointment is not relevant to be a "workman" within the Act.

Since, the workman was engaged on contract basis by respondent no.2 for the work of respondent no.1, thus it

would be termed as workman under Section 2(s) of the Act.

14.

Next question which arises for consideration is whether respondent no.1 is an industry. The Hon‘ble

Apex Court in the case of Banglore Water Supply & Sewerage Board Vs. A. Rajappa 1978(36) FLR 266

dealt at length with the ambit and scope of expression ―industry‖ as defined in Section 2(j) of the Act, and has

laid down triple test for determining whether a particular establishment is industry or not. The triple test is

where (a) systematic activity (b) organised by cooperation between employer and employee (the direct and

substantial element is commercial (c) for the production or distribution of goods and services to calculated to

satisfy human wants and wishes prima facie is an ―Industry‖ in that enterprise. Relevant part of judgment of

Banglore Water Supply & Sewerage Board (supra) is reproduced as under:-

“Does research involve collaboration between employer and employee? It does. The

employer is the institution, the employees are the scientists, para-scientists and other

personnel. Is scientific research service? Undoubtedly it is. Its discoveries are valuable

contributions to the wealth of the nation. Such discoveries may be sold for a heavy price

in the industrial or other markets. Technology has to be plate for and technological

inventions and innovations may be patented and sold. In our scientific and technological

age nothing has more cash value, as intangible goods and invaluable services, than

discoveries. For instance, the discoveries of Thomas Alva Edison made him fabulously

rich. It has been said that his brain had the highest cash value in history for he made the

world vibrate with the miraculous discovery of recorded, sound. Unlike most inventors,

he did not have to wait to get his reward in heaven; he received, it munificently on this

gratified and grateful earth, thanks to conversion of his inventions into, money a plenty.

Research benefits industry. Even though a research institute may be a separate entity

disconnected from the many industries which funded the institute itself, it can be

regarded as an Organisation, propelled by systematic activity, modeled on co-operation

between employer and employee and calculated to throw up discoveries and inventions

and useful solutions which benefit individual industries and the nation in terms of goods

and services and wealth. It follows that research institutes, albeit run without profit-

motive, are industries.”

15.

In the present case, respondent no.1 is doing research work and as per RW1 Sh. Shankar Das Rishi,

products are sold in the institute for display purposes of the products. He has also admitted that vide Ex.W1 to

W7, various products of the institute have been sold to the customers. Thus, respondent no.1 is engaged in

systematic activity organized by cooperation between employer and employee (employees being workmen in

the present case) for the production or distribution of goods and services to calculated to satisfy human wants.

In this regard, it is carrying out research. In addition to this, from the research work, benefits are being driven

by respondent no.1 and as per observation of Hon'ble Supreme Court in Banglore Water Supply & Sewerage

Board (supra), respondent no.1 falls under the definition of ‗industry‘ as defined under the Act.

16.

So far as argument of AR for respondent no.1 that respondent no.1 being instrumentality of state

does not fall under the definition of ‗industry‘. In this regard, Hon'ble Supreme Court in case titled as Chief

Conservator of Forest Versus Jagannath Maruti Kondhare (1996 (2) SCT 164), has held that work, which

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9251

was not be regarded as a part of inalienable of inescapable function of the State and which work can be well

undertaken by a private agency does not require an instrumentality of State, such functions of the State fall

within the ambit of Industry. Thus, function of doing research and other allied works of selling of goods and

earning from research cannot be said to be sovereign function of the State and thus for this purpose of

industrial dispute, respondents would be termed as industry.

17.

Thus, from every angle, respondent no.1 is an industry. Moreover, its employees are not governed

by IHBT Rules or CCS Rules, thus it is an industry. In view of the judgment of Hon'ble Supreme Court titled

as Banglore Water Supply & Sewerage Board (supra), decided by Hon'ble Supreme Court, the case law

Central Institute of Medicinal and Aromatic Plants and others (supra) decided by Hon'ble High Court at

Allahabad cited by AR for respondent no.1 is not attracted to the facts and circumstances of the present case.

18.

It is also added here that as per definition of contractor as given in the Section 2(c) of the Contract

Labour (Regulation and Abolition) Act, 1970 (hereinafter called as Contract Act), respondent no.2 was

supplying contract labour to the respondent no.1. Thus, he would also fall under the definition of contractor.

Section 2(c) of the Contract Act is reproduced as under:

“Contractor”, in relation to an establishment, means a person who undertakes to produce

a given result for the establishment, other than a mere supply of goods or articles of

manufacture to such establishment, through contract labour or who supplies contract

labour for any work of the establishment and includes a sub-contractor;

19.

The workman was doing work i.e. systematic activity for respondent no.1 at the asking of

respondent no.2 and there was cooperation between the workman and respondent no.2, which involve

substantial commercial element for rendering service to satisfy human wants. Thus, as per Banglore Water

Supply (supra), respondent no.2 would be termed as industry.

20.

Next question, which arises for consideration is whether there exists relationship of employer and

employee between respondent no.1 and present workman. In this regard, it is pointed out that admittedly in

this case, union of workmen has filed ID No.255 of 2013 titled as The General Secretary, Institute of

Himalayan Bio-Source Technology (CSIR) (supra), wherein name of the worker appeared at Sr. No.72 of the

list of enclosed by union as Annexure P-4. It is further pointed out that in order to prove relationship of

employer and employee i.e. master and servant, the Hon‘ble Supreme Court after analyzing the catena of cases

has laid down in Balwant Raj Saluja Vs. Air India Limited in Civil Appeal No.10266 dated 25.08.2014, two

well recognized tests to find out whether the labours are the contract employees of the principal employer are:-

1) Whether the principal employer pays the salary instead of contractor and

2) Whether the principal employer controls and supervise the work of the employees?

In this case, admittedly wages were paid by respondent no.2, however, control was of the respondent no.1.

Thus, under these circumstances, it is held that there exist relationship of master and servant between

respondent no.1 and workman.

21.

Further, in the present case, admittedly respondent no.1 is entering into different contract

agreements with respondent no.2 (Ex.RW1/1 Colly as detailed above) by retaining same workmen and thus

contracts are sham in view of the observation of Hon'ble Delhi High Court in similar matter in Management of

CPWD versus Anand Kumar Gautam and ors. (2024:DHC:2757) which is as under:

―Contract labourers can be engaged for the work of contractor only and not for the work

of any establishment. In the present case the work is of the establishment and not of the

contractor. The term supply of labour by a contractor is against human dignity. No one

can be a supplier of human labour to any establishment. It is the duty of State to give

employment to citizen and not of the contractors. Contractors cannot supply labour to any

establishment. In view of the above discussion it becomes quite obvious that the

contractors workmen in the instant case have been retained all along and contractors have

been changed. So the contractor is only a label of a bottle. This label is changed from time

to time but the contents of the bottle always remain the same. The contractors have been

changed and the workmen have been retained. Such a system is in-human. The contractors

are the direct employees of the respondent/management.

From the foregoing it becomes quite obvious that these two workmen have been working

regularly and even without artificial breaks since 1995-96. The contract is camouflage.

There is direct relation of master and servant between the respondent and the

workmen.”

22.

Hon'ble Supreme Court in case titled as Bhilwara Dugdh Utpadak Sahakari S. Ltd. Versus Vinod

Kumar Sharma dead by LRs and others (AIR 2011 Supreme Court 3546) has held as under:-

9252

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

4. In order to avoid their liability under various labour statutes employers are very often

resorting to subterfuge by trying to show that their employees are in fact, the employees of

a contractor. It is high time that this subterfuge must come to an end.

5. Labour statutes were meant to protect the employees/workmen because it was realized

that the employers and the employees are not on an equal bargaining position. Hence,

protection of employees was required so that they may not be exploited. However, this new

technique of subterfuge has been adopted by some employers in recent years in order to

deny the rights of the workmen under various labour statutes by showing that the

concerned workmen are not their employees but are the employees/workmen of a

contractor, or that they are merely daily wage or short term or casual employees when in

fact they are doing the work of regular employees.

23.

Thus, from the above observation of Hon'ble Supreme Court, it is clear that respondent no.1 has

resorted to subterfuge by trying to show that workman was employee of respondent no.2.

24.

Moreover, respondent no.1 entered in various agreements with respondent no.2 (Ex.RW1/1 Colly),

which shows that there is practice that the contract for engagement of the employer/labour through contractors

changes on the basis of bid of the contractors every year. The contractor may change but the

employees/labourers always remain same. The workman was already working with the management when the

contract was tendered to the respondent no.2. Neither the workman was engaged by respondent no.2 nor the

services of workman were terminated by respondent no.2. It is the respondent no.1 who uses to select/engage

and terminate the labour/workman and respondent no.2 has no role in the same. Thus, it shows that the

contract was just an eyewash. It is further submitted that contract was allotted to respondent no.2 by

respondent no.1 on different years as per Ex.RW1/1 (colly) and sometime to other contractors, meaning

thereby the respondent no.1 is controlling authority of the workmen including their engagement, termination

etc. and even the wages of workman were also decided by respondent no.1 only and respondent no.2 has no

role to play in the same. So, there exist relationship of employees/servant and employer/master between the

workmen and respondent no.1. Thus, the judgment The Joint Secretary, Central Board of Secondary

education and another (supra) cited by AR for respondent no.1 is not attracted to the present case as in this

case, time and again, same workers were being engaged through contractor and in view of clear cut dictum of

Hon'ble Delhi High Court in Management of CPWD (supra), the aforementioned case law is not attracted.

25.

So far as Kirlosker Brothers Ltd. Vs. Ramcharan and others (supra) relied upon by the AR for

respondent no.1 is concerned, facts and circumstances of this case are distinguishable. In the said Kirlosker

Brothers Ltd. Vs. Ramcharan and others (supra), Court has held that that when there are no allegations or

findings of sham and bogus contract then the contention of the reinstatement or the absorption of the workman

cannot be sustained but the facts of the matter at hand is different from the facts of the case as in the instant

case. In this case, workman was working since long and the work was of perennial nature. Thus, it tantamount

to unfair labour practice.

26.

It is added here that admittedly in this case, workman was discharged by the respondent no.1 & 2

and as per agreement Ex.RW1/1 (colly), contract was awarded to respondent no.2 by respondent no.1 for a

period of two years i.e. from 19.12.2012 to 18.12.2014. However, workman was discharged prior to that on

28.11.2014.

27.

No prior permission was taken by respondent no.1 & 2 before the discharging the services of

workman. Section 33(2)(b) of the Act is very material and the same is reproduced below:-

“(b) for any misconduct not connected with the dispute, or discharge or punish, whether

by dismissal or otherwise, that workman:

Provided that no such workman shall be discharged or dismissed, unless he has

been paid wages for one month and an application has been made by the employer to the

authority before which the proceeding is pending for approval of the action taken by the

employer.”

28.

As per aforesaid provision, the workman can be discharged or dismissed after paying one month

wages and after getting approval of the competent authority. In this case, no wages for one month was paid nor

any permission from competent authority was taken before discharging the workman and consequently, it

would be considered that workman was in regular services of the workman. A Full Constitutional Bench of

Hon'ble Supreme Court in case titled as Jaipur Zila Sahakari Bhoomi Vikas Bank Ltd. versus Ram Gopal

Sharma and others (2002 SCC (L & S) 279) has held that failure to make application for approval of the order

of discharge or dismissal or withdrawal of such application after making it, held, renders the order of discharge

or dismissal void and inoperative.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9253

29.

The present application under Section 33A is well maintainable and purpose has also been defined

by the Hon'ble Supreme Court in Jaipur Zila Sahakari Bhoomi Vikas Bank Ltd. (supra) case, which read as

follows:-

Section 33A is available to an employee and is intended to save his time and trouble in as

much as he can straightway make a complaint before the very authority, where the

industrial dispute is already pending between the parties, challenging the order of

approval instead of making efforts to raise an industrial dispute, get a reference and

thereafter adjudication. Section 31 speaks of penalty in respect of the offences stated

therein. This provision is not intended to give any remedy to an aggrieved employee. It is

only to punish the offender. Merely because penal provision is available or a workman has

a further remedy under Section 33A to challenge the approval granted, it canoe be said

that the order of discharge or dismissal does not become inoperative or invalid unless set

aside under Section 33A.

30.

In view of the above discussion, the termination of workman on 28.11.2014 is bad in law and hence

is set aside. In this case, both the respondents in connivance with each other have dispensed the services of the

workman. Hence, both respondents are liable. The workman is entitled for reinstatement along with full back

wages. It is ordered accordingly. The services of the workman would not be discharged/terminated during the

pendency of the ID No.255 of 2013, wherein, they have claimed various demands vide charter of demands

dated 09.05.2011. However, in case workman has attained the age of retirement, then he would be entitled for

full back wages along with other consequential benefits instead of reinstatement in service.

31.

Let copy of this award be sent to the Appropriate Government as required under Section 17 of the

Act for publication.

KAMAL KANT, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1749.— औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

साइक्लोप्स गसक्योररिी एंड एलाइड सर्ववसेज़ के प्रबंधतंत्र के संबद्ध गनयोजकों और श्री मसनदर पाल ससह के बीच अनुबंध

में गनर्ददष्ट केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-1, चंडीगढ़, पंचाि (ररफरेन्द्स न.- 15/2025) को जैसा

दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है जो केन्द्रीय सरकार को सॉफ्ि कॉपी के साथ 07.08.2026 को प्राप्त

हुआ था l

[la-- एल-42025/07/2026-225-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1749.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 15/2025) of the Central Government Industrial Tribunal

cum Labour Court-1, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Cyclops Security and Allied Services and Shri Maninder Pal Singh which was received along with soft

copy of the award by the Central Government on 07.08.2026.

[No. L-42025/07/2026-225-IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-I, Chandigarh

(Present:-Mr. Kamal Kant, Presiding-cum-Link Officer).

ID No. 15/2025

Registered on:-22.07.2025

Maninder Pal Singh, 2139/2 Sector 45-C Chandigarh, Chandigarh-160047.

-------- Workman

Versus

Cyclops Security and Allied Services, CGHS, Wellness Centre No.1, Sector 45 C, Chandigarh-160047.

----Management

9254

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Present:- Sh. R.P. Rana, AR along with workman.

Award :16.07.2026

1.

Central Government vide Notification No.8(50)/2024/RCH/C.II Dated 09.07.2025, sub-section (5) of

Section 12 read with sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 (hereinafter called the

Act), has referred the following Industrial dispute for adjudication to this Tribunal:-

―Whether the action of DG CGHS and AD CGHS Chandigarh & M/s Cyclops Security

and Allied Services Pvt. Ltd. in terminating the employment of Shri Maninder Pal

Singh w.e.f. 26.09.2024 without following the due process including section 25F, 25G

and 25H of ID Act, 1947 is legal and justified? If not, to what relief including

reinstatement; back wages and compensation the workman is entitled to?

Whether the action of management of DG CGHS and AD CGHS Chandigarh & M/s

Cyclops Security and Allied Services Pvt. Ltd. in issuing and implementation of

letter/direction vide CGHS HQ letter No.C.18013/04/2022-CGHS-II dated 28.05.2022

and AD/CGHS/Chandigarh/Gen/2024/210 dated 03.09.2024 leading to termination of

employment of Shri Maninder Pal Singh without following the provisions of ID Act is

legal and justified and constitutes unfair labour practice under Section 25T read with

Schedule V of ID Act, 1947?‖

2.

This case is fixed for 19.01.2027. However, an application dated 16.07.2026 was moved on behalf of the

workman seeking permission to withdraw the present Industrial Dispute. Thereafter, the workman made the

following statement:-

“I withdraw the present cased and the same may be dismissed as withdrawn.”

3.

In view of the application filed on behalf of the Workman, as well as the statement made by the

Workman, this Tribunal is left with no choice, except to pass a 'No Claim Award'. Accordingly, 'No Claim

Award' is passed in the present industrial dispute.

4.

Let copy of this award be sent to the Appropriate Government as required under Section 17 of the Act for

publication.

KAMAL KANT, Presiding-cum-Link Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1750.—औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

साइक्लोप्स गसक्योररिी एंड एलाइड सर्ववसेज़ के प्रबंधतंत्र के संबद्ध गनयोजकों और श्री गवजय कुमार के बीच अनुबंध में

गनर्ददष्ट केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-1, चंडीगढ़, पंचाि (ररफरेन्द्स न.- 14/2025) को जैसा दक

अनुलग्नक में ददखाया गया है, प्रकागशत करती है जो केन्द्रीय सरकार को सॉफ्ि कॉपी के साथ 07.08.2026 को प्राप्त

हुआ था l

[la

एल-42025/07/2026-224-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1750.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 14/2025) of the Central Government Industrial Tribunal

cum Labour Court-1, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Cyclops Security and Allied Services and Shri Vijay Kumar which was received along with soft copy of

the award by the Central Government on 07.08.2026.

[No. L-42025/07/2026-224-(IR(DU)]

SALONI, Deputy Director

In the Central Government Industrial Tribunal-cum-Labour Court-I, Chandigarh

(Present:-Mr. Kamal Kant, Presiding-cum-Link Officer).

ID No.14/2025

Registered on:-22.07.2025

Vijay Kumar, 173, New Indira Colony, Manimajra, Chandigarh, Chandigarh-160101, 9888689248.

-------- Workman

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9255

Versus

Cyclops Security and Allied Services, CGHS, Wellness Centre No.1, Sector 45 C, Chandigarh-160047.

----Management

Present:- Sh. R.P. Rana, AR along with workman.

Award :16.07.2026

1.

Central Government vide Notification No.8(52)/2024/RCH/C.II Dated 09.07.2025, sub-section (5) of

Section 12 read with sub-section (2A) of Section 10 of the Industrial Disputes Act, 1947 (hereinafter called the

Act), has referred the following Industrial dispute for adjudication to this Tribunal:-

―Whether the action of DG CGHS and AD CGHS Chandigarh & M/s Cyclops Security

and Allied Services Pvt. Ltd. in terminating the employment of Shri Vijay Kumar w.e.f.

26.09.2024 without following the due process including section 25F, 25G and 25H of ID

Act, 1947 is legal and justified? If not, to what relief including reinstatement; back

wages and compensation the workman is entitled to?

Whether the action of management of DG CGHS and AD CGHS Chandigarh & M/s

Cyclops Security and Allied Services Pvt. Ltd. in issuing and implementation of

letter/direction vide CGHS HQ letter No.C.18013/04/2022-CGHS-II dated 28.05.2022

and AD/CGHS/Chandigarh/Gen/2024/210 dated 03.09.2024 leading to termination of

employment of Shri Vijay Kumar without following the provisions of ID Act is legal

and justified and constitutes unfair labour practice under Section 25T read with

Schedule V of ID Act, 1947?‖

2.

This case is fixed for 19.01.2027. However, an application dated 16.07.2026 was moved on behalf of the

workman seeking permission to withdraw the present Industrial Dispute. Thereafter, the workman made the

following statement:-

“I withdraw the present cased and the same may be dismissed as withdrawn.”

3.

In view of the application filed on behalf of the Workman, as well as the statement made by the

Workman, this Tribunal is left with no choice, except to pass a 'No Claim Award'. Accordingly, 'No Claim

Award' is passed in the present industrial dispute.

4.

Let copy of this award be sent to the Appropriate Government as required under Section 17 of the Act for

publication.

KAMAL KANT, Presiding-cum-Link Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1751.— औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार

कमांडर वक्सस इंजीगनयर न के प्रबंधतंत्र के संबद्ध गनयोजकों और एमईएस गसगवगलयन वकससस एंड एम्पप्लॉइज यूगनय के बीच

अनुबंध में गनर्ददष्ट केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-1, चंडीगढ़, पंचाि (ररफरेन्द्स न.- 01/2022)

को जैसा दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है जो केन्द्रीय सरकार को सॉफ्ि कॉपी के साथ 07.08.2026

को प्राप्त हुआ था l

[la

एल-42011/181/2021-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1751.— In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 01/2022) of the Central Government Industrial Tribunal

cum Labour Court-1, Chandigarh as shown in the Annexure, in the Industrial dispute between the employers in

relation to Commander Works Engineer and MES Civilian Workers & Employees Union which was received

along with soft copy of the award by the Central Government on 07.08.2026.

[No. L-42011/181/2021-IR(DU)]

SALONI, Deputy Director

9256

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

In the Central Government Industrial Tribunal-cum-Labour Court-I, Chandigarh

(Presided over by Mr. Kamal Kant Presiding-cum-Link Officer).

ID No. 01/2022

Registered on:-17.05.2022

MES Civilian Workers & Employees Union Ferozpur, Punjab.

-------- Workmen Union

Versus

Head Quarter, Commander Works Engineer, Ferozepur Cantt. Ferozepur, Punjab-152001.

----Management

Present:-

None for Workmen Union.

None for Management (already ex-parte).

Award :29.05.2026

1.

Central Government Vide Notification No.L-42011/181/2021(IR(DU)) dated 07.02.2022, Clause (d) of

Sub-section (1) and Sub-Section (2A) of Section 10 of the Industrial Disputes Act,1947 (hereinafter called the

Act), has referred the following Industrial dispute for adjudication to this Tribunal.

―Whether the demands raised by MES Civilian Workers & Employees Union

Ferozpur (PB) vide letter dated 20.03.2021 to the management of Commander Works

Engineer, Ferozpur Cantt. is proper, legal and justified? If yes, to what reliefs the

disputant workers are entitled? What directions are necessary in this matter?”

1.

The case is fixed for filing evidence by workmen union. However, no one is turning up on behalf of

workmen Union from last two dates. Today also, no one turned up on behalf of workmen Union. The workmen

Union has been given sufficient opportunities for filing claim statement, but no one turned up on behalf of

workmen union in spite of the opportunities afforded to it for filing evidence, which shows that the workmen

union is not interested in adjudication of the matter on merit.

2.

Since no one is appearing for the workmen union, as such, this Tribunal is left with no choice, except to

pass a 'No Claim Award'. Accordingly, 'No Claim Award' is passed in the present Industrial Dispute.

3.

Let copy of this award be sent to the Appropriate Government as required under Section 17 of the Act for

publication.

KAMAL KANT, Presiding-cum-Link Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1752.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारतीय स्िेि बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa

– सह –

] हैदराबाद ds

iapkV (सन्दर्भ संख्या

/

) dks izdkf”kr djrh gS]

[la

/01/2026-

-(बी-I)-181]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1752.— In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.21/2003) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-12025/01/2026- IR (B-I)-181]

SALONI, Deputy Director

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9257

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 10th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 21/2003

[Old ID No. 245/2000 of Labour Court, Guntur]

Between:

Sri Sudarshanam Anil

S/o Ananda Rao

R/o Rayapudi,

Thulluru Mandal,

Guntur distt.

… Petitioner

And

1.

The Chairman,

State Bank of India,

Central office,

Mumbai.

2.

The Chief General Manager,

(Personnel)

State Bank of India,

Bank Street

Hyderabad.

3.

The Regional Asst. General Manager,

State Bank of India,

Zonal Office, Vijayawada Zone,

Vijayawada.

4.

The Branch Manager,

State Bank of India,

Governorpet branch,

Vijayawada

Krishna district.

…..Respondents

Appearances:

For the Petitioner

: Sri S. Adinarayana, Advocate

For the Respondent

: Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Sudarshanam Anil who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger/Sweeper duly granting all the consequential benefits such as continuity of

service, back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit. Earlier

Petitioner has filed this dispute before the Labour Court, Guntur for adjudication and later the same has been

transferred to this Tribunal bearing ID No. 245/2000, as per orders of Central Government vide Lr.No.H-

11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in this Tribunal as LC No. 21/2003.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble

High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

9258

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 18.9.84 to September, 1996 and

has rendered unblemished service spreading over a period of about 12 years. The Respondent has terminated

services of Workman by oral orders with effect from September, 1996. Further, it is submitted that the management

of Respondent bank decided to give a chance to temporarily employed personnel ―found suitable for permanent

appointment‖ by wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. ―there will be no

temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from

amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9259

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, ―will be given another chance to appear for interview‖.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement (Ex M1), settlement dated 16.7.88 is 2nd settlement (Ex M2), settlement dated 27.10.88 is the 3rd

settlement (Ex M3), then settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement

(Ex M6). In between there is minutes of conciliation proceedings dated 9.6.95 marked as Ex M5. That due to all

these settlements which were extended by subsequent settlements thereby created reasonable expectations in the

list of the selected candidates arose with that it‘s a question of time their appointments or services would be

regularized in the services of the bank. The Workman was working with the bank on temporary basis was under

the bonafide hope that sooner his services will be regularized with the bank. He is thereby closed all his options

elsewhere. It is needless to point out that employing person to whom hope of employment in substantial terms was

made is a facet of Article 21 of the Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‘ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

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[PART II—SEC. 3(ii)]

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from September, 1996 which is arbitrary, discriminatory,

contrary to their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of

the Constitution of India.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9261

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97, Ex.M5 does not own any legal entity, as the said Memorandum of Understanding is

not published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.97 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9263

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W11. Further, the Workman has filed photocopies of documents in support

of his claim which are discussed as under:-

Ex.W1 to Ex.W4 are the service certificates. Ex.W5 is the transfer certificate. Ex.W6 is the caste certificate.

Ex.W7 is the employment card. Ex.W8 is the interview call letter. Ex.W9 is the stay order. Ex.W10 is the 1992

panel list. Ex.W11 is the legal notice.

21.

On the other hand, Respondent has examined witness MW1 Sri K. Chandra Sekhara Goud and this witness

has exhibited 12 documents, marked as Ex.M1 to M12. The details of these documents are as follows:-

Ex.M.1 is the Settlement dated 17.11.1987. Ex.M2 is the Settlement dated 16.7.1988. Ex.M3 is the Settlement

dated 27.10.1988. Ex.M4 is the Settlement dated 9.1.1991. Ex.M5 is the Minutes of the conciliation proceedings

dated 9.6.1995. Ex.M6 is the Settlement dated 30.7.1996. Ex.M7 is the Memorandum of Understanding dt.

27.2.1997. Ex.M8 is the Particulars of 1989 Messengerial Panel. Ex.M9 is the Particulars of 1989 Non-

Messengerial Panel. Ex.M10 is the Particulars of 1992 General Attendant Panel. Ex.M11 is the Judgment of

Hon‘ble High Court of A.P. in Writ Appeal No.86/98 dt.1.5.1998. Ex.M12 is the Judgment of Hon‘ble Supreme

Court of India in SLP No. 11886-11888 of 1998 dt.10.8.1998.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India, Main branch, Vijayawada in terminating the services of

Workman Sri Sudarshanam Anil, a Messenger with effect from September, 1996 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

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[PART II—SEC. 3(ii)]

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from September, 1996. The extract of the said letter is given below:-

―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from September, 1996.‖

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from September, 1996 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of

settlements entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by

Respondent Management is also direction to Branch Manager, State Bank of India not to make any temporary

messengerial category appointment with effect from September, 1996 and it has also been communicated to all

concerned that the panels of temporary employees and daily wagers maintained by Zonal offices stand lapsed from

31.1.1997. Further, office order dated 31.3.1997 has been issued by Respondent management that goes to reveal

that the said office order has been issued to this effect that, ―Consequent on absorption of temporary employees in

permanent cadre, it has been decided by the competent authority that no one onwards, no further daily labour or

temporary employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the

contents of the aforesaid orders that the temporary appointment in messengerial category and daily labour has been

stopped by the Respondent management with effect from September, 1996 because of the lapsed of panel of

temporary workers and daily wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is

contained in the 5th settlement which has been arrived at between the parties on dated 30.7.1996 with the consensus

of both the parties. Therefore, Workman can not challenge the terms and conditions contained in settlement dated

30.7.1996 regarding lapse of panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff

Federation. As per provision contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding

on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon‘ble Court have held:-

―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9265

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon‘ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on September, 1996 without issuing any notice or paying any salary or compensation in lieu

thereof. Therefore, the termination order of the Workman from service is in violation of provision contained Under

Section 25 F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

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[PART II—SEC. 3(ii)]

September, 1996 without notice of salary or compensation in lieu thereof. Before examining the claim of the

Workman on merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..‖

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

[भाग II—खण् ड 3(ii)]

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In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and Chapter

VA.”

Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., September, 1996.

In this context, WW1 in his cross examination has stated that,

“I was not sponsored by any employment exchange and did not undergo the regular process of selection before my

engagement as temporary messenger in the branch..”

“It is true that I did not work continuously for 240 days in any year in my entire service in the bank.”

Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously in any 12

months of a calendar year just preceding from the date of his termination in the Respondent bank. Therefore,

Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240 days

continuously in calendar year just preceding from the date of his termination i.e., September, 1996. Thus, the claim

of the Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination,

in contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated September, 1996 rather he was disengaged in view of the non-availability of the work in the branch. Further,

there was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. September, 1996. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

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[PART II—SEC. 3(ii)]

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., September, 1996.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from September, 1996, therefore it was directed to issue suitable instructions not

to make temporary appointments from September, 1996. There is no mention in this order that the Workman herein

has been terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from September, 1996 and there after. It is settled law that the daily wagers are engaged by the employer depending

upon the availability of work and as the work was not available the Workman was not engaged further by the

Respondent management. Therefore, the Workman on the ground of number of days he had worked in the

Respondent bank cannot claim any right to reinstate him into the employment. As the Workman failed to prove the

mandatory condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9269

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon‘ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

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[PART II—SEC. 3(ii)]

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

In this context the Workman witness WW1 was cross examined by the Respondent counsel and in the cross

examination the witness WW1 states:-

“I am not aware of the settlements between the federation and the Management. …. Further witness states, “It is true

that I am not having any documents to show that any of my juniors are continuing in service in the bank.”

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of

various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was

prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself

admitted that he is not having any document to show that any person who worked for less number of days than the

Workman was given appointment in the bank. Therefore, the allegation of the Workman that the regular

appointment has been made by the bank from the panel list in breach of the terms of the settlement and violation of

seniority of panel list is not proved by this evidence of WW1. Thus, there is no evidence on record that bank has

given the appointment to the temporary employees as well as daily wagers from the panel list 1989 and 1992 in

breach of seniority of the temporary employees in the list. There is no evidence of jumbling in the panel list to make

appointment of any permanent Workman in breach of the seniority. Therefore, I am constrained to hold that the

Respondent Management has appointed the workmen from panel list in order of seniority and there is no jumbling of

workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till the both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9271

Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon‘ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

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[PART II—SEC. 3(ii)]

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon‘ble High Court have held,

―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. A copy of the said minutes of proceedings is Ex.M5. Further, MW1 states that on 30.7.1996 another

settlement was entered between the SBI and All India SBI Staff Federation providing for filling up of the vacancies

arising up to December 1994 in respect of subordinate cadre and daily wage /casual wage employees out of panel so

prepared were to be considered against vacancies arising from January 1995 to December 1996, thereafter the said

panels lapse. MW1 states that it was also agreed that all the non- messenger positions in subordinate cadre including

part time attendants specially provided as leave reserve will be filled before 31.3.1997 and as regards to non-

messengerial positions it is agreed that all such posts sanctioned and fallen vacant up to 31.3.1997 shall be filled

before the empanelled list is allowed to lapse. Thus in both the cases empanelled list were lapsed on September,

1996. Ex.M6 is the copy of the settlement dated 30.7.1996. Further, witness states that on 27.2.1997 a

memorandum of understanding was reached between the SBI and SBI Staff Federation providing that both the panels

above mentioned will lapse on 31.3.1997. Ex.M7 is the copy of the memorandum of understanding and Ex.M8 is the

copy of the statements giving the particulars of 1989 non-messenger panel, Ex.M9 is the copy of the statement of

1989 non- messenger panel, Ex.M10 is the copy of statement of 1992 panel. Further, witness states that petitioner

was included in the 1989 panel. As the existing vacancies at that time were exhausted and his turn did not come he

could not be given permanent employment in the bank as per the agreements. All the appointments were made

strictly in accordance with the settlements reached from time to time between SBI and SBI staff federation and as per

seniority, number of days of temporary service put in by them in the bank in the given period. Further, MW1 states

petitioner was not sponsored by any employment exchange he did not undergo the regular process of selection

required for appointment as a regular non-messenger the petitioner has not worked for 240 days in any year in his

entire temporary service in the bank. The petitioner and other temporary employees were terminated from service by

the bank. Further, MW1 states that the vacancies were filled up on regular basis with the temporary employees from

the panels and these panels were expired in terms of the settlements so reached and there were no vacancies to absorb

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9273

such employees. Thus, witness MW1 has proved the documents Ex.M1 to Ex.M12 and also contentions made in the

counter. However, MW1 was cross examined by the Petitioner Counsel. But nothing has been elicited in his cross

examination so as to discredit the testimony of the witness MW1 as regards the date of lapse of both the panels on

31.3.1997 and reasons assigned for non-absorption of the Petitioner from the panel list to the permanent post.

Moreover the witness MW1 was re-examined by the Respondent and the witness MW1 states that panels were

expired in terms of the settlement send absorptions to the extent of the available vacancies were made. There was no

termination of any temporary messenger as such but their services were not utilized after the cut off date as the

available vacancies were already filled up and most of these Petitioners were not in the service of the bank as on the

date of the expiry date of the panels. Therefore, in view of the aforesaid testimony of the MW1 in re-examination in

the absence of cross examination remained uncontraverted, the claim of the Workman that he was entitled for

absorption in permanent post in the branch of Respondent Management on the basis of panel list is found not

established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Sudarshanam Anil, Ex. Messenger by way of oral orders w.e.f. September, 1996 is justified. Hence,

the Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 10th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Sudarshanam Anil

MW1: Sri K. Chandra Sekhar Goud

Documents marked for the Petitioner

Ex.W1 to

Ex.W4:

Photocopies of service certificates

Ex.W5:

Photocopy of transfer certificate

Ex.W6:

Photocopy of caste certificate

Ex.W7:

Photocopy of employment card

Ex.W8:

Photostat copy of interview call letter

Ex.W9:

Photocopy of stay order

Ex.W10:

Photocopy of 1992 panel list

Ex.W11:

Photocopy of legal notice.

Documents marked for the Respondent

Ex.M1:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.17.11.87

9274

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Ex.M2:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.16.7.88

Ex.M3:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.27.10.1988

Ex.M4:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.9.1.1991

Ex.M5:

Photocopy of conciliation proceedings before the Regional Labour Commissioner(C) dt.9.6.1995

Ex.M6:

Photocopy of settlement between Respondent and All India State Bank of India Staff Federation

dt.30.7.1996

Ex.M7:

Photocopy of Memorandum of understanding dt. 27.1.1997

Ex.M8:

Photocopy of statements giving the particulars of 1989 messenger panel.

Ex.M9:

Photocopy of statement of 1989 Non-messenger panel

Ex.M10:

Photocopy of statement of 1992 panel

Ex.M11:

Photocopy of order of Hon‘ble High Court in WA No.86/98 dt. 1.5.98

Ex.M12:

Photocopy of order in SLP No.11886-11888 of 1998 dated 10.8.98

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1753.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारतीय स्िेि बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa

–सह–

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iapkV (सन्दर्भ संख्या

/

) dks izdkf”kr djrh gS]

[la

/01/2026-

-( बी-I)-180]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1753.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (No. LC. 55/2002) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-12025/01/2026- IR (B-I)-180]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 8th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 55/2002

[Old ITID(C) No. 41/2001 of Labour Court cum Industrial Tribunal, Visakhapatnam ]

Between:

Sri Thota Srinivasa Rao,

S/o Ramamurthy,

R/o Vizianagaram.

…. Petitioner

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9275

And

The Dy. General Manager,

State Bank of India,

Personnel section,

Zonal office, Region -II,

Visakhapatnam.

…..Respondent

Appearances:

For the Petitioner

:

Sri K.R. Prabhakar, Advocate

For the Respondent

:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Thota Srinivasa Rao who worked as Messenger (who will be referred to as the workman) has

filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank

of India seeking for reinstatement into service as Messenger/Sweeper duly granting all the consequential

benefits such as continuity of service, back wages and all other attendant benefits etc., and such other reliefs

as this court may deem fit. Earlier Petitioner has filed this dispute before the Labour Court cum Industrial

Tribunal, Visakhapatnam for adjudication and later the same has been transferred to this Tribunal bearing

ITID(C) No. 41/2001, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated

18.10.2001 and registered, numbered in this Tribunal as LC No. 55/2002.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble

High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

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[PART II—SEC. 3(ii)]

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger and worked from 8.4.88 to 31.3.1997,

and has rendered unblemished service spreading over a period of about 9 years. The Respondent has terminated

services of Workman by oral orders with effect from 31.3.1997. Further, it is submitted that the management of

Respondent bank decided to give a chance to temporarily employed personnel ―found suitable for permanent

appointment‖ by wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. ―there will be no

temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from

amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, ―will be given another chance to appear for interview‖.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement, settlement dated 16.7.88 is 2nd settlement, settlement dated 27.10.88 is the 3rd settlement, then

settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement. In between there is

minutes of conciliation proceedings dated 9.6.95. That due to all these settlements which were extended by

subsequent settlements thereby created reasonable expectations in the list of the selected candidates arose with that

it‘s a question of time their appointments or services would be regularized in the services of the bank. The

Workman was working with the bank on temporary basis was under the bonafide hope that sooner his services will

be regularized with the bank. He is thereby closed all his options elsewhere. It is needless to point out that

employing person to whom hope of employment in substantial terms was made is a facet of Article 21 of the

Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‘ble High Court

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9277

also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

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[PART II—SEC. 3(ii)]

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.1997

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97 does not own any legal entity, as the said Memorandum of Understanding is not

published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.1997 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9279

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

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[PART II—SEC. 3(ii)]

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W4. Further, MW1 has proved documents Ex.W5 to Ex.W7. Workman has

filed photocopies of documents in support of his claim which are discussed as under:-

Ex.W1 and Ex.W4 are the service certificates. Ex.W5 is the letter to CGM (Per) dated 10.10.1990. Ex.W6 is the

letter from Government of India reg. recruitment and absorption of temporary employees dt.19.8.90. Ex.W7 is the

letter from Government of India to Respondent dt.30.11.87.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

one document, marked as Ex.M1 i.e., the printed book containing settlement between the staff federation and

Management for regularization of services of the temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9281

II.

Whether the action of State Bank of India in terminating the services of Workman Sri Thota

Srinivasa Rao, a Messenger with effect from 31.3.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.‖

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, ―Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

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[PART II—SEC. 3(ii)]

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon‘ble Court have held:-

―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon‘ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-

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[PART II—SEC. 3(ii)]

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..‖

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and Chapter

VA.”

Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997. The

witness WW1 in chief examination has stated that he had worked for 254 days in the Respondent organization from

1985 to 1997. As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner has to

adduce the evidence of continuous service of 240 days in a calendar year just preceding from the date of his

termination i.e., 31.3.1997. But as per the chief statement of witness WW1, vide Ex.W1 he had worked continuously

for 10 days in the branch during the year 1997. Petitioner had worked vide for 76 days, vide Ex.W3 for 380 days,

and vide Ex.W4 for 261 days. Further, Petitioner witness has not adduced any evidence that he had worked for 240

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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days continuously in a calendar year of 12 months just preceding from the date of his termination i.e., 31.3.1997.

However, the documents in evidence filed by the Petitioner do not corroborate the averment of the claim statement as

these documents are not exhibited or proved by the statement of WW1 or any other witness‘s evidence. Further, the

perusal of the document goes to reveal that the certificates allegedly issued by Respondent which goes to reveal that

the Petitioner had worked as a temporary messenger at the branch of the Respondent bank from 8.4.1988 to

31.3.1997, do not support the claim of the Petitioner that he had worked for 240 days continuously in a calendar year

just preceding from the date of his termination ie., 31.3.1997. Therefore, the claim of the Petitioner that he has been

terminated in contravention of provision contained under section 25 F of the Act is not corroborated by his oral or

documentary evidence. Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days

continuously in any 12 months of a calendar year just preceding from the date of his termination in the Respondent

bank. Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked for

240 days continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the

claim of the Workman that he has been terminated by oral order without issuing notice or payment in lieu after

termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents

filed by the Workman in support of his claim, number of days worked with the Respondent goes to reveal that the

Workman had worked intermittently as daily wager depending upon availability of work in branch. Workman did

not file any document of appointment letter or salary slips in support of his claim for appointment as a non-

messenger in the Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

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[PART II—SEC. 3(ii)]

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon‘ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

[भाग II—खण् ड 3(ii)]

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panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, ― He

did not complete 240 days of service in any year. In pursuance of settlements between the union and the bank, even

though who have not completed 240 days of service in a year, were also empanelled for being considered for

appointment in future vacancies.‖ Although this witness was cross examined by the Petitioner but the above

statement of the management witness in chief remained uncontroverted, as the witness MW1 was not cross examined

by Petitioner on this point. Therefore, the claim of the Petitioner that he has been removed from service by the

management illegally is untenable. Further, witness MW1 in his chief statement has stated that, the workman was

engaged in leave vacancies in the bank on Temporary basis. This witness has categorically stated that, ―Some of the

empanelled candidates were appointed on seniority basis and number of days.‖ This statement of witness MW1

remained uncontroverted as the Petitioner did not cross examine the witness MW1 on this point. Therefore, the

Petitioner Workman as per number of working days, failed to fulfil eligibility criteria of working days as required

for regularisation. Therefore, he was not given regularisation in the employment of the Respondent. Moreover, the

Workman witness WW1 in his cross examination has admitted the fact that ― It is true that no juniors to me were

given employment by the bank on regular basis.‖ Therefore, in view of the statement of WW1 in cross examination,

the claim of the Petitioner that he was refused regularization by the Respondent management illegally, is untenable.

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of

various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was

prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself

admitted that some of the temporary employees whose names were included in the panel were given regular

appointment in the bank in order of their seniority in the panel and he is not having any document to show that any

person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the

allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of

the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,

there is no evidence on record that bank has given the appointment to the temporary employees as well as daily

wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no

evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.

Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in

order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

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[PART II—SEC. 3(ii)]

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9289

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon‘ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon‘ble High Court have held,

―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All

India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of

subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be considered against

vacancies arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also

agreed that all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such

posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus

in both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a memorandum

of understanding was reached between the SBI and SBI Staff Federation providing that both the panels above

mentioned will lapse on 31.3.1997. Ex.M1 contains, Memorandum of understanding and statements giving the

particulars of 1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel.

Further, witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time between SBI

and SBI staff federation and as per seniority, number of days of temporary service put in by them in the bank in the

given period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo

the regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents contained in Ex.M1

printed book and also contentions made in the counter. However, MW1 was cross examined by the Petitioner

Counsel. But nothing has been elicited in his cross examination so as to discredit the testimony of the witness

MW1 as regards the date of lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the

Petitioner from the panel list to the permanent post. Moreover the witness MW1 was re-examined by the Respondent

and the witness MW1 states that panels were expired in terms of the settlement send absorptions to the extent of the

available vacancies were made. There was no termination of any temporary messenger as such but their services were

not utilized after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the aforesaid

testimony of the MW1 in re-examination in the absence of cross examination remained uncontraverted, the claim of

the Workman that he was entitled for absorption in permanent post in the branch of Respondent Management on the

basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Thota Srinivasa Rao, Ex. Messenger by way of oral orders w.e.f. 31.3.1997 is justified. Hence, the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9291

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 8th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Thota Srinivasa Rao

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

Ex.W1 to:

Ex.W4:

Photocopies of Service certificates

Ex.W5:

Photocopy of letter to CGM (Per) dated 10.10.1990

Ex.W6:

Photocopy of the letter from Government of India reg. recruitment and absorption of temporary

employees dt.19.8.90

Ex.W7:

Photocopy of the letter from Government of India to Respondent dt.30.11.87.

Documents marked for the Respondent

Ex.M1:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1754.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारतीय स्िेि बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa

-सह-

] हैदराबाद ds

iapkV (सन्दर्भ संख्या

/

) dks izdkf”kr djrh gS]

[la

/01/2026-

-(बी-I)-179]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1754.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.54/2002) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-12025/01/2026- IR (B-I)-179]

SALONI, Deputy Director

9292

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

In The Central Government Industrial Tribunal Cum Labour Court At Hyderabad

Present: Sri IRFAN QAMAR

Presiding Officer

Dated the 8th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 54/2002

[Old ITID(C) No. 39/2001 of Labour Court cum Industrial Tribunal, Visakhapatnam ]

Between:

Sri Tompala Somayya,

S/o Surayya,

Bituvada Village,

Veeraghattam mandal,

Srikakulam District.

…. Petitioner

And

The Dy. General Manager,

State Bank of India,

Personnel section,

Zonal office, Region -II,

Visakhapatnam.

…..Respondent

Appearances:

For the Petitioner :

Sri K.R. Prabhakar, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Tompala Somayya who worked as Messenger (who will be referred to as the workman) has

filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank

of India seeking for reinstatement into service as Messenger/Sweeper duly granting all the consequential

benefits such as continuity of service, back wages and all other attendant benefits etc., and such other reliefs

as this court may deem fit. Earlier Petitioner has filed this dispute before the Labour Court cum Industrial

Tribunal, Visakhapatnam for adjudication and later the same has been transferred to this Tribunal bearing

ITID(C) No. 39/2001, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated

18.10.2001 and registered, numbered in this Tribunal as LC No. 54/2002.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble

High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9293

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger and worked from 1.9.1987 to

31.12.1987 and has rendered unblemished service spreading over a period of about 78 days. The Respondent has

terminated services of Workman by oral orders with effect from 1.1.1988. Further, it is submitted that the

management of Respondent bank decided to give a chance to temporarily employed personnel ―found suitable for

permanent appointment‖ by wait- listing them by offering permanent appointment or waitlisting till such opportunity

arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. ―there will be no

temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from

amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, ―will be given another chance to appear for interview‖.

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[PART II—SEC. 3(ii)]

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement, settlement dated 16.7.88 is 2nd settlement, settlement dated 27.10.88 is the 3rd settlement, then

settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement. In between there is

minutes of conciliation proceedings dated 9.6.95. That due to all these settlements which were extended by

subsequent settlements thereby created reasonable expectations in the list of the selected candidates arose with that

it‘s a question of time their appointments or services would be regularized in the services of the bank. The

Workman was working with the bank on temporary basis was under the bonafide hope that sooner his services will

be regularized with the bank. He is thereby closed all his options elsewhere. It is needless to point out that

employing person to whom hope of employment in substantial terms was made is a facet of Article 21 of the

Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‘ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

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that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 1.1.1988

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97 does not own any legal entity, as the said Memorandum of Understanding is not

published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

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[PART II—SEC. 3(ii)]

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 1.1.1988 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

[भाग II—खण् ड 3(ii)]

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the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W8. Further, MW1 has proved documents Ex.W9 to Ex.W11. Workman

has filed photocopies of documents in support of his claim which are discussed as under:-

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[PART II—SEC. 3(ii)]

Ex.W1 to Ex.W7 are the service certificates. Ex.W8 is the employment notification. Ex.W9 is the letter to CGM

(Per) dated 10.10.1990. Ex.W10 is the letter from Government of India reg. recruitment and absorption of temporary

employees dt.19.8.90. Ex.W11 is the letter from Government of India to Respondent dt.30.11.87.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

one document, marked as Ex.M1 i.e., the printed book containing settlement between the staff federation and

Management for regularization of services of the temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India in terminating the services of Workman Sri Tompala

Somayya, a Messenger with effect from 1.1.1988 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.‖

[भाग II—खण् ड 3(ii)]

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Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, ―Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon‘ble Court have held:-

―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon‘ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

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[PART II—SEC. 3(ii)]

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1.1.1988 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

1.1.1988 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

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(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..‖

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

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[PART II—SEC. 3(ii)]

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and Chapter

VA.”

Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 1.1.1988. The

witness WW1 in chief examination has stated that he had worked for 78 days in the Respondent organization from

1.9.1987 to 31.12.1987. As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner

has to adduce the evidence of continuous service of 240 days in a calendar year just preceding from the date of his

termination i.e., 1.1.1988. But as per the chief statement of witness WW1, vide Ex.W1 he had worked continuously

for 75 days in the branch during the year 1987. Further, Petitioner witness has not adduced any evidence that he

had worked for 240 days continuously in a calendar year of 12 months just preceding from the date of his termination

i.e., 1.1.1988. However, the documents in evidence filed by the Petitioner do not corroborate the averment of the

claim statement as these documents are not exhibited or proved by the statement of WW1 or any other witness‘s

evidence. Further, the perusal of the documents goes to reveal that the certificates allegedly issued by Respondent

which goes to reveal that the Petitioner had worked as a temporary messenger at the branch of the Respondent bank

from 1.9.1987 to 1.1.1988, do not support the claim of the Petitioner that he had worked for 240 days continuously

in a calendar year just preceding from the date of his termination ie., 1.1.1988. Therefore, the claim of the Petitioner

that he has been terminated in contravention of provision contained under section 25 F of the Act is not corroborated

by his oral or documentary evidence. Thus, it is clear from the testimony of WW1 that the Workman had not

worked for 240 days continuously in any 12 months of a calendar year just preceding from the date of his

termination in the Respondent bank. Therefore, Workman failed to establish his plea by his oral and documentary

evidence that he had worked for 240 days continuously in calendar year just preceding from the date of his

termination i.e., 1.1.1988. Thus, the claim of the Workman that he has been terminated by oral order without issuing

notice or payment in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not

tenable. However the documents filed by the Workman in support of his claim, number of days worked with the

Respondent goes to reveal that the Workman had worked intermittently as daily wager depending upon availability

of work in branch. Workman did not file any document of appointment letter or salary slips in support of his claim

for appointment as a non-messenger in the Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1.1.1988 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 1.1.1988.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

[भाग II—खण् ड 3(ii)]

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deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

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[PART II—SEC. 3(ii)]

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon‘ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in the

settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding nature

of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the I.D.

Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated

30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no

legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, ― He

did not complete 240 days of service in any year. In pursuance of settlements between the union and the bank, even

though who have not completed 240 days of service in a year, were also empanelled for being considered for

appointment in future vacancies.‖ Although this witness was cross examined by the Petitioner but the above

statement of the management witness in chief remained uncontroverted, as the witness MW1 was not cross examined

by Petitioner on this point. Therefore, the claim of the Petitioner that he has been removed from service by the

management illegally is untenable. Further, witness MW1 in his chief statement has stated that, the workman was

engaged in leave vacancies in the bank on Temporary basis. This witness has categorically stated that, ―Some of the

empanelled candidates were appointed on seniority basis and number of days.‖ This statement of witness MW1

remained uncontroverted as the Petitioner did not cross examine the witness MW1 on this point. Therefore, the

Petitioner Workman as per number of working days, failed to fulfil eligibility criteria of working days as required

for regularisation. Therefore, he was not given regularisation in the employment of the Respondent. Moreover, the

Workman witness WW1 in his cross examination has admitted the fact that ― It is true that no juniors to me were

[भाग II—खण् ड 3(ii)]

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9305

given employment by the bank on regular basis.‖ Therefore, in view of the statement of WW1 in cross examination,

the claim of the Petitioner that he was refused regularization by the Respondent management illegally, is untenable.

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of

various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was

prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself

admitted that some of the temporary employees whose names were included in the panel were given regular

appointment in the bank in order of their seniority in the panel and he is not having any document to show that any

person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the

allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of

the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,

there is no evidence on record that bank has given the appointment to the temporary employees as well as daily

wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no

evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.

Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in

order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

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[PART II—SEC. 3(ii)]

Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon‘ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9307

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon‘ble High Court have held,

―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All India

SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of subordinate

cadre and daily wage /casual wage employees out of panel so prepared were to be considered against vacancies

arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also agreed that

all the non- messenger positions in subordinate cadre including part time attendants specially provided as leave

reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such posts

sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus in

both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a memorandum of

understanding was reached between the SBI and SBI Staff Federation providing that both the panels above mentioned

will lapse on 31.3.1997. Ex.M1 contains, Memorandum of understanding and statements giving the particulars of

1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel. Further, witness

states that petitioner was included in the 1989 panel. As the existing vacancies at that time were exhausted and his

turn did not come he could not be given permanent employment in the bank as per the agreements. All the

appointments were made strictly in accordance with the settlements reached from time to time between SBI and SBI

staff federation and as per seniority, number of days of temporary service put in by them in the bank in the given

period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo the

regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents contained in Ex.M1

printed book and also contentions made in the counter. However, MW1 was cross examined by the Petitioner

Counsel. But nothing has been elicited in his cross examination so as to discredit the testimony of the witness

MW1 as regards the date of lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Petitioner from the panel list to the permanent post. Moreover the witness MW1 was re-examined by the Respondent

and the witness MW1 states that panels were expired in terms of the settlement send absorptions to the extent of the

available vacancies were made. There was no termination of any temporary messenger as such but their services were

not utilized after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the aforesaid

testimony of the MW1 in re-examination in the absence of cross examination remained uncontraverted, the claim of

the Workman that he was entitled for absorption in permanent post in the branch of Respondent Management on the

basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Tompala Somayya, Ex. Messenger by way of oral orders w.e.f. 1.1.1988 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 8th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Tompala Somayya

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

Ex.W1 to:

Ex.W7:

Photocopies of Service certificates

Ex.W8:

Photocopy of employment notification

Ex.W9:

Photocopy of letter to CGM (Per) dated 10.10.1990

Ex.W10:

Photocopy of the letter from Government of India reg. recruitment and absorption of temporary

employees dt.19.8.90

Ex.W11:

Photocopy of the letter from Government of India to Respondent dt.30.11.87.

Documents marked for the Respondent

Ex.M1:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1755.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारतीय स्िेि बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa

–सह–

] हैदराबाद ds

iapkV (सन्दर्भ संख्या

/

) dks izdkf”kr djrh gS]

[la

/01/2026-

-(बी-I)-178]

सलोनी, उप गनदेशक

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9309

New Delhi, the 7th August, 2026

S.O. 1755.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (No.LC. 53/2002) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-12025/01/2026- IR (B-I)-178]

SALONI, Deputy Director

In The Central Government Industrial Tribunal Cum Labour Court At Hyderabad

Present: Sri IRFAN QAMAR

Presiding Officer

Dated the 8th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 53/2002

[Old ITID(C) No. 38/2001 of Labour Court cum Industrial Tribunal, Visakhapatnam ]

Between:

Sri Pitani Venkataramu,

S/o Abbaji,

R/o Kakinada.

…. Petitioner

And

1.

The Chief General Manager,

State Bank of India,

LHO, bank street,

Hyderabad.

2.

The Dy. General Manager,

State Bank of India,

Personnel section,

Zonal office, RTC Complex,

2ns floor, Visakhapatnam.

…..Respondents

Appearances:

For the Petitioner :

Sri Macherla Rangaiah, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Pitani Venkataramu who worked as Messenger (who will be referred to as the workman) has

filed this petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank

of India seeking for reinstatement into service as Messenger/Sweeper duly granting all the consequential

benefits such as continuity of service, back wages and all other attendant benefits etc., and such other reliefs

as this court may deem fit. Earlier Petitioner has filed this dispute before the Labour Court cum Industrial

Tribunal, Visakhapatnam for adjudication and later the same has been transferred to this Tribunal bearing

ITID(C) No. 38/2001, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated

18.10.2001 and registered, numbered in this Tribunal as LC No. 53/2002.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble

High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger and worked from 1988 to 1989, and

has rendered unblemished service spreading over a period of about 2 years. The Respondent has terminated services

of Workman by oral orders with effect from April, 1989. Further, it is submitted that the management of

Respondent bank decided to give a chance to temporarily employed personnel ―found suitable for permanent

appointment‖ by wait- listing them by offering permanent appointment or waitlisting till such opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. ―there will be no

temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from

amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9311

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, ―will be given another chance to appear for interview‖.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement, settlement dated 16.7.88 is 2nd settlement, settlement dated 27.10.88 is the 3rd settlement, then

settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement. In between there is

minutes of conciliation proceedings dated 9.6.95. That due to all these settlements which were extended by

subsequent settlements thereby created reasonable expectations in the list of the selected candidates arose with that

it‘s a question of time their appointments or services would be regularized in the services of the bank. The

Workman was working with the bank on temporary basis was under the bonafide hope that sooner his services will

be regularized with the bank. He is thereby closed all his options elsewhere. It is needless to point out that

employing person to whom hope of employment in substantial terms was made is a facet of Article 21 of the

Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‘ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

9312

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9313

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.97

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97 does not own any legal entity, as the said Memorandum of Understanding is not

published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated April, 1989 is unjust,

illegal, violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the

Workman and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

9314

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9315

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1. Workman has filed photocopy of document Ex.W1, the service certificate, in

support of his claim.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

two documents, marked as Ex.M1 and Ex.M2. Ex.M1 is the statement showing the number of days the Petitioner

worked during the relevant period. Ex.M2 is the printed book containing settlement between the staff federation and

Management for regularization of services of the temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India in terminating the services of Workman Sri Pitani

Venkataramu, a Messenger with effect from April, 1989 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.‖

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, ―Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon‘ble Court have held:-

―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon‘ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9317

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on April, 1989 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

April, 1989 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman

on merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

9318

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..‖

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9319

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and Chapter

VA.”

Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., April, 1989. The

witness WW1 in chief examination has stated that he had worked in the Respondent organization from 1988 to 1989.

As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner has to adduce the evidence

of continuous service of 240 days in a calendar year just preceding from the date of his termination i.e., April, 1989.

But as per the chief statement of witness WW1, vide Ex.W1 he had worked continuously for 90 days in the branch

during the years 1988- 1989. Further, Petitioner witness has not adduced any evidence that he had worked for 240

days continuously in a calendar year of 12 months just preceding from the date of his termination i.e., April, 1989.

However, the documents in evidence filed by the Petitioner do not corroborate the averment of the claim statement as

these documents are not exhibited or proved by the statement of WW1 or any other witness‘s evidence. Further, the

perusal of the document goes to reveal that the certificate allegedly issued by Respondent which goes to reveal that

the Petitioner had worked as a temporary messenger at the branch of the Respondent bank from November, 1988 to

April, 1989, do not support the claim of the Petitioner that he had worked for 240 days continuously in a calendar

year just preceding from the date of his termination ie., April, 1989. Therefore, the claim of the Petitioner that he has

been terminated in contravention of provision contained under section 25 F of the Act is not corroborated by his oral

or documentary evidence. Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240

days continuously in any 12 months of a calendar year just preceding from the date of his termination in the

Respondent bank. Therefore, Workman failed to establish his plea by his oral and documentary evidence that he

had worked for 240 days continuously in calendar year just preceding from the date of his termination i.e., April,

1989. Thus, the claim of the Workman that he has been terminated by oral order without issuing notice or payment

in lieu after termination, in contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However

the documents filed by the Workman in support of his claim, number of days worked with the Respondent goes to

reveal that the Workman had worked intermittently as daily wager depending upon availability of work in branch.

Workman did not file any document of appointment letter or salary slips in support of his claim for appointment as

a non-messenger in the Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated April, 1989 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., April, 1989.

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[PART II—SEC. 3(ii)]

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9321

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon‘ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

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[PART II—SEC. 3(ii)]

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, ― The

workman did not complete 240 days of service in any12 calendar months. The workman was empanelled for being

being considered for regularization of service. The empanelment was on the basis of settlement reached between the

Management of State Bank of India and the Staff Federation.‖ Although this witness was cross examined by the

Petitioner but the above statement of the management witness in chief remained uncontroverted, as the witness MW1

was not cross examined by Petitioner on this point. Therefore, the claim of the Petitioner that she has been removed

from service by the management illegally is untenable. Further, witness MW1 in his chief statement has stated that,

the workman was engaged in leave vacancies in the bank on Temporary basis. This witness has categorically stated

that, ―on the basis of the vacancies available, the services of temporary employees were regularized basing on their

length of service upto 31.7.1988.‖ This statement of witness MW1 remained uncontroverted as the Petitioner did not

cross examine the witness MW1 on this point. Therefore, the Petitioner Workman as per number of working days,

failed to fulfil eligibility criteria of working days as required for regularisation. Therefore, he was not given

regularisation in the employment of the Respondent. Therefore, the claim of the Petitioner that he was refused

regularization by the Respondent management illegally, is untenable. Thus, from the above statement of the

Workman witness WW1 it is clear that the panel was prepared in terms of various settlements entered into between

Staff Federation of State Bank of India and State Bank of India and it was prepared on the basis of number of days of

work put in by the temporary employees. Further, the Workman himself admitted that some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel and he is not having any document to show that any person who worked for less number of days

than the Workman was given appointment in the bank. Therefore, the allegation of the Workman that the regular

appointment has been made by the bank from the panel list in breach of the terms of the settlement and violation of

seniority of panel list is not proved by this evidence of WW1. Thus, there is no evidence on record that bank has

given the appointment to the temporary employees as well as daily wagers from the panel list 1989 and 1992 in

breach of seniority of the temporary employees in the list. There is no evidence of jumbling in the panel list to make

appointment of any permanent Workman in breach of the seniority. Therefore, I am constrained to hold that the

Respondent Management has appointed the workmen from panel list in order of seniority and there is no jumbling of

workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9323

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon‘ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

9324

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon‘ble High Court have held,

―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All

India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of

subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be considered against

vacancies arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also

agreed that all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such

posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus

in both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a

memorandum of understanding was reached between the SBI and SBI Staff Federation providing that both the panels

above mentioned will lapse on 31.3.1997. Ex.M1 contains, Memorandum of understanding and statements giving

the particulars of 1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel.

Further, witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time between SBI

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9325

and SBI staff federation and as per seniority, number of days of temporary service put in by them in the bank in the

given period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo

the regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents contained in Ex.M1

printed book and also contentions made in the counter. However, MW1 was cross examined by the Petitioner

Counsel. But nothing has been elicited in his cross examination so as to discredit the testimony of the witness

MW1 as regards the date of lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the

Petitioner from the panel list to the permanent post. Moreover the witness MW1 was re-examined by the Respondent

and the witness MW1 states that panels were expired in terms of the settlement send absorptions to the extent of the

available vacancies were made. There was no termination of any temporary messenger as such but their services were

not utilized after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the aforesaid

testimony of the MW1 in re-examination in the absence of cross examination remained uncontraverted, the claim of

the Workman that he was entitled for absorption in permanent post in the branch of Respondent Management on the

basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Pitani Venkataramu, Ex. Messenger by way of oral orders w.e.f. April, 1989 is justified. Hence, the

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 8th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Pitani Venkataramu

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

Ex.W1: Service certificate

Documents marked for the Respondent

Ex.M1:

Photocopy of service details of Petitioner

Ex.M2:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

9326

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1756.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारतीय स्िेि बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa

–सह–

] हैदराबाद ds iapkV

(सन्दर्भ संख्या

/

) dks izdkf”kr djrh gS]

[la

/01/2026-

-( बी-I)-177]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1756.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.56/2002) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-12025/01/2026- IR (B-I)-177]

SALONI, Deputy Director

In The Central Government Industrial Tribunal Cum Labour Court At Hyderabad

Present: Sri IRFAN QAMAR

Presiding Officer

Dated the 9th day of June, 2026

INDUSTRIAL DISPUTE L.C.No. 56/2002

[Old ITID(C) No. 42/2001 of Labour Court cum Industrial Tribunal, Visakhapatnam ]

Between:

Sri K. Appa Rao,

S/o Hanuman,

D.No.36-95-100,

Kapparanda kancharapalem,

Visakhapatnam – 530 008

…. Petitioner

And

1.

The Chief General Manager,

State Bank of India,

Bank Street,

Hyderabad.

2.

The Deputy General Manager ,

State Bank of India,

Zonal office,

Visakhapatnam – 530 001.

…..Respondent

Appearances:

For the Petitioner :

Sri Macherla Rangaiah, Advocate

For the Respondent:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri K. Appa Rao who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India

seeking for reinstatement into service as Messenger/Sweeper duly granting all the consequential benefits

such as continuity of service, back wages and all other attendant benefits etc., and such other reliefs as this

court may deem fit. Earlier Petitioner has filed this dispute before the Labour Court cum Industrial

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9327

Tribunal, Visakhapatnam for adjudication and later the same has been transferred to this Tribunal bearing

ITID(C) No. 42/2001, as per orders of Central Government vide Lr.No.H-11026/1/2001-IR(C.II) dated

18.10.2001 and registered, numbered in this Tribunal as LC No. 56/2002.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble

High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement dated

20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger and worked from 8.10.1986 to March,

1997, and has rendered unblemished service spreading over a period of about 11 years. The Respondent has

terminated services of Workman by oral orders with effect from 31.3.1997. Further, it is submitted that the

management of Respondent bank decided to give a chance to temporarily employed personnel ―found suitable for

permanent appointment‖ by wait- listing them by offering permanent appointment or waitlisting till such opportunity

arises.

9328

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. ―there will be no

temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from

amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, ―will be given another chance to appear for interview‖.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement, settlement dated 16.7.88 is 2nd settlement, settlement dated 27.10.88 is the 3rd settlement, then

settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement. In between there is

minutes of conciliation proceedings dated 9.6.95. That due to all these settlements which were extended by

subsequent settlements thereby created reasonable expectations in the list of the selected candidates arose with that

it‘s a question of time their appointments or services would be regularized in the services of the bank. The

Workman was working with the bank on temporary basis was under the bonafide hope that sooner his services will

be regularized with the bank. He is thereby closed all his options elsewhere. It is needless to point out that

employing person to whom hope of employment in substantial terms was made is a facet of Article 21 of the

Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‘ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9329

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

9330

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 31.3.1997

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97 does not own any legal entity, as the said Memorandum of Understanding is not

published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 31.3.1997 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

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[PART II—SEC. 3(ii)]

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W4. Workman has filed photocopies of documents in support of his claim

which are discussed as under:-

Ex.W1 to Ex.W4 are the service certificates.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

two documents, marked as Ex.M1 and Ex.M2. Ex.M1 is the service details of Petitioner and Ex.M2 is the printed

book containing settlement between the staff federation and Management for regularization of services of the

temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India in terminating the services of Workman Sri K. Appa Rao,

a Messenger with effect from 31.3.1997 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:-

Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and

30.7.1996, minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed

between the State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of

I.D. Act, 1947 read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9333

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.‖

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, ―Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon‘ble Court have held:-

―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

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[PART II—SEC. 3(ii)]

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon‘ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 31.3.1997 without issuing any notice or paying any salary or compensation in lieu thereof.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9335

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

31.3.1997 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..‖

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

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[PART II—SEC. 3(ii)]

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and Chapter

VA.”

Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 31.3.1997. The

witness WW1 in chief examination has stated that he had worked for 518 days in the Respondent organization from

1986 to 1997. As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner has to

adduce the evidence of continuous service of 240 days in a calendar year just preceding from the date of his

termination i.e., 31.3.1997. But as per the chief statement of witness WW1, vide Ex.W1 he had worked continuously

for 74 days in the branch during the years 1986. Further, Ex.W2 shows that he had worked for 200 days, Ex.W3

shows that he had worked for 200 days, and Ex.W4 shows that he had worked from 1996 to 1997 for 118 days.

Further, Petitioner witness has not adduced any evidence that he had worked for 240 days continuously in a calendar

year of 12 months just preceding from the date of his termination i.e., 31.3.1997. However, the documents in

evidence filed by the Petitioner do not corroborate the averment of the claim statement as these documents are not

exhibited or proved by the statement of WW1 or any other witness‘s evidence. Further, the perusal of the document

goes to reveal that the certificate allegedly issued by Respondent which goes to reveal that the Petitioner had

worked as a temporary messenger at the branch of the Respondent bank from 8.10.86 to 31.3.1997, do not support

the claim of the Petitioner that he had worked for 240 days continuously in a calendar year just preceding from the

date of his termination ie., 31.3.1997. Therefore, the claim of the Petitioner that he has been terminated in

contravention of provision contained under section 25 F of the Act is not corroborated by his oral or documentary

evidence. Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days continuously

in any 12 months of a calendar year just preceding from the date of his termination in the Respondent bank.

Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked for 240

days continuously in calendar year just preceding from the date of his termination i.e., 31.3.1997. Thus, the claim of

the Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination, in

contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9337

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 31.3.1997 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 31.3.1997.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon‘ble Apex Court have held:-

“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in

the settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding

nature of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the

I.D. Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement

dated 30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has

no legal force and same is untenable.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9339

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, ― It is

not true to say that bank has removed the Workman from service by taking care to see that he did not complete 240

days of the service continuously within a period of 12 months. The engagement of the service of the workmen was

need based and there is no continuous availability of leave vacancies for engaging his services.‖ Although this

witness was cross examined by the Petitioner but the above statement of the management witness in chief remained

uncontroverted, as the witness MW1 was not cross examined by Petitioner on this point. Therefore, the claim of the

Petitioner that he has been removed from service by the management illegally is untenable. Further, witness MW1

in his chief statement has stated that, the workman was engaged in leave vacancies in the bank on Temporary basis.

This witness has categorically stated that, ―The last person whose services was regularised has completed 77 days of

employment during the crucial period as per settlement whereas the Workman herein worked for 65.33 days during

that period.‖ This statement of witness MW1 remained uncontroverted as the Petitioner did not cross examine the

witness MW1 on this point. Therefore, the Petitioner Workman as per number of working days, failed to fulfil

eligibility criteria of working days as required for regularisation. Therefore, he was not given regularisation in the

employment of the Respondent. Moreover, the Workman witness WW1 in his cross examination has admitted the

fact that he do not know whether any junior to him were regularised in the services. Further, WW1 states that he do

not know particulars of the settlement reached between the management and staff union. Therefore, in view of the

statement of WW1 in cross examination, the claim of the Petitioner that he was refused regularization by the

Respondent management illegally, is untenable. Thus, from the above statement of the Workman witness WW1 it is

clear that the panel was prepared in terms of various settlements entered into between Staff Federation of State Bank

of India and State Bank of India and it was prepared on the basis of number of days of work put in by the temporary

employees. Further, the Workman himself admitted that some of the temporary employees whose names were

included in the panel were given regular appointment in the bank in order of their seniority in the panel and he is not

having any document to show that any person who worked for less number of days than the Workman was given

appointment in the bank. Therefore, the allegation of the Workman that the regular appointment has been made by

the bank from the panel list in breach of the terms of the settlement and violation of seniority of panel list is not

proved by this evidence of WW1. Thus, there is no evidence on record that bank has given the appointment to the

temporary employees as well as daily wagers from the panel list 1989 and 1992 in breach of seniority of the

temporary employees in the list. There is no evidence of jumbling in the panel list to make appointment of any

permanent Workman in breach of the seniority. Therefore, I am constrained to hold that the Respondent

Management has appointed the workmen from panel list in order of seniority and there is no jumbling of workmen

in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

9340

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

42.

In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon‘ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9341

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon‘ble High Court have held,

―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

9342

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All

India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of

subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be considered against

vacancies arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also

agreed that all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such

posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus

in both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a

memorandum of understanding was reached between the SBI and SBI Staff Federation providing that both the panels

above mentioned will lapse on 31.3.1997. Ex.M1 contains, Memorandum of understanding and statements giving

the particulars of 1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel.

Further, witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time between SBI

and SBI staff federation and as per seniority, number of days of temporary service put in by them in the bank in the

given period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo

the regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents contained in Ex.M2

printed book and also contentions made in the counter. However, MW1 was cross examined by the Petitioner

Counsel. But nothing has been elicited in his cross examination so as to discredit the testimony of the witness

MW1 as regards the date of lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the

Petitioner from the panel list to the permanent post. Moreover the witness MW1 was re-examined by the Respondent

and the witness MW1 states that panels were expired in terms of the settlement send absorptions to the extent of the

available vacancies were made. There was no termination of any temporary messenger as such but their services were

not utilized after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the aforesaid

testimony of the MW1 in re-examination in the absence of cross examination remained uncontraverted, the claim of

the Workman that he was entitled for absorption in permanent post in the branch of Respondent Management on the

basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri K. Appa Rao, Ex. Messenger by way of oral orders w.e.f. 31.3.1997 is justified. Hence, the Petitioner

is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence, dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 9th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri K. Appa Rao

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

Ex.W1 to:

Ex.W4:

Photocopies of Service certificates

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9343

Documents marked for the Respondent

Ex.M1:

Photocopy of statement showing working details of Petitioner.

Ex.M2:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1757.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारतीय स्िेि बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa

-सह-

] हैदराबाद ds iapkV

(सन्दर्भ संख्या

/

) dks izdkf”kr djrh gS]

[la

/01/2026-

-( बी-I)-176]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1757.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.20/2023) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-12025/01/2026- IR (B-I)-176]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri IRFAN QAMAR

Presiding Officer

Dated the 15th day of July, 2026

INDUSTRIAL DISPUTE No. 20/2023

Between:

Sri Pulimi Vijaya Bhaskar Reddy,

16-3-234-2, Ramalingapursm, Nellore,

Spsr Nellore,

Andhra Pradesh-524003 ....….Petitioner

AND

State Bank of India,

State Bank of India, Town Branch, Nellore,

Spsr Nellore,

Andhra Pradesh-524001 ..……Respondent

Appearances:

For the Petitioner

: Sri S. Suman, Advocate

For the Respondent

: Sri Y. Ranjeeth Reddy, Advocate

9344

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

AWARD

The Government of India, Ministry of Labour by its order No. 7/2/2023-B1 dated 17.03.2023 referred the

following dispute under section 10(1)(d) of the I.D. Act, 1947 for adjudication to this Tribunal between the

management of State Bank of India, Town Branch, Nellore and their workman. The reference is,

SCHEDULE

―Whether the action of the management of State Bank of India in terminating the services of Sri Pulimi

Vijaya Bhaskar Reddy, Ex-Messenger is legal and justified? If not, what relief the workman is entitled to?‖

The reference is numbered in this Tribunal as I.D. No 20/2023 and notices were issued to the parties

concerned.

2.

On the date case is fixed for Petitioner evidence, Petitioner remained absent. Despite sufficient opportunity

accorded to the Petitioner, he did not adduce any evidence in support of his claim, opportunity closed. Hence, a No-

Claim Award is passed. Reference is answered accordingly.

Typed to my dictation by Smt. K. Phani Gowri, P.A., corrected and signed by me on this the 15th day of

July, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

NIL

NIL

Documents marked for the Petitioner

NIL

Documents marked for the Respondent

NIL

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1758.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj भारतीय स्िेि बैंक ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa

fufnZ’V vkS|ksfxd fookn esa

-सह-

] हैदराबाद ds iapkV

(सन्दर्भ संख्या

/

) dks izdkf”kr djrh gS]

[la

/01/2026-

-(बी-I)-175]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1758.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (.No.LC.50/2002) of the Central Government Industrial Tribunal-cum-

Labour Court, Hyderabad as shown in the Annexure, in the industrial dispute between the Management of State Bank

of India and their workmen,

[No. L-12025/01/2026- IR (B-I)-175]

SALONI, Deputy Director

IN THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL CUM LABOUR COURT AT

HYDERABAD

Present: - Sri Irfan Qamar

Presiding Officer

Dated the 8th day of June, 2026

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9345

INDUSTRIAL DISPUTE L.C.No. 50/2002

[Old ITID(C) No. 32/2001 of Labour Court cum Industrial Tribunal, Visakhapatnam ]

Between:

Sri Suragana Neelayya,

S/o Appanna,

R/o Vizianagaram.

…. Petitioner

And

The Dy. General Manager,

State Bank of India,

Personnel section,

Zonal office, Region -II,

Visakhapatnam.

…..Respondent

Appearances:

For the Petitioner

:

Sri Macherla Rangaiah, Advocate

For the Respondent

:

Sri Y. Ranjeeth Reddy, Advocate

AWARD

Sri Suragana Neelayya who worked as Messenger (who will be referred to as the workman) has filed this

petition under Sec. 2A(2) of the Industrial Disputes Act, 1947 against the Respondents State Bank of India seeking for

reinstatement into service as Messenger/Sweeper duly granting all the consequential benefits such as continuity of

service, back wages and all other attendant benefits etc., and such other reliefs as this court may deem fit. Earlier

Petitioner has filed this dispute before the Labour Court cum Industrial Tribunal, Visakhapatnam for adjudication

and later the same has been transferred to this Tribunal bearing ITID(C) No. 32/2001, as per orders of Central

Government vide Lr.No.H-11026/1/2001-IR(C.II) dated 18.10.2001 and registered, numbered in this Tribunal as LC

No. 50/2002.

2.

Before unfolding the factual matrix of the instant industrial dispute it would be apposite to have a bird eye

view of a chequered history of the instant industrial dispute. Earlier instant industrial dispute along with the batch

cases was decided by this Tribunal vide common award dated 17.5.2005 and the reference was answered in favour of

the Respondent and against the Workman. That said common award dated 17.5.2005 was challenged by the

aggrieved Workmen in various Writ petition No.6470/2014 along with batch of writ petitions before the Hon‘ble

High Court of Andhra Pradesh and Hon‘ble High Court vide its‘ judgement dated 23.6.2014 allowed all batch of writ

petitions and set aside the common award dated 17.5.2005 passed in ID No.222 of 2001 and other batch of ID cases

by Central Government Industrial Tribunal cum Labour Court, Hyderabad and the Respondent management of State

Bank of India was directed to reengage the Writ Petitioners in position, which they have been occupying prior to

their termination and further directed to consider their cases for regularization as and when the substantive vacancy

arises. This judgement dated 23.6.2014 of Hon‘ble High Court of AP, passed in WP No.6470/2014 and batch

petitions was challenged by Respondent management before the Hon‘ble High Court in Writ Appeal No. 1268 of

2014. The aforesaid Writ Appeals No.1268/2014 and other Writ Appeals were decided by Division Bench of High

Court of Andhra Pradesh by a common judgement dated 20.3.2019. Hon‘ble High Court in aforesaid Writ Appeal

was pleased to pass the order which is extracted as below:-

“ 7. Hearing the learned senior counsel for the SBI and the learned senior counsel for the contesting unofficial

Respondents, we see that while the learned single Judge was justified in setting aside the award af the Tribunal, the

proper course to be adopted was to remit all the cases to the Tribunal. This we say for reasons more than one. Firstly,

in such matters, claims have to be decided on individual basis, as different persons have different claims as to the

length of officiation or discharge of duties and functions; quality of engagement, drawings, accounting of the post for

each one of them, who have worked etc. All these issues will not be the same in all the cases. Therefore, each case

ought to have been directed to be decided by the Tribunal afresh on individual basis. The second and most important

aspect is the learned single Judge has in one go ordered re-employment of all the workmen. This is not a relief that

could have been granted without answering the individual issues; each issue relating to each case could not have

been decided by the writ Court within the format of its adjudication procedures and scope. The adjudicating body,

which has to do that activity, is the Industrial Tribunal. Therefore, we are of the view that while we would sustain the

order of the learned singe Judge insofar as it interfered and sets aside the award of the Tribunal, the further findings

and directions, issued through the impugned order have to go and the individual cases have to be sent back for

consideration of the Tribunal. Such further procedure before the Tribunal will have to be carried forward with the

materials already on record and also by affording an opportunity to the persons, who have claims as well as the

management to place their rival contentions and further material before the Tribunal. The learned counsel appearing

9346

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

for the workmen are justified in pointing out that enormous delay has already happened and further action by the

Tribunal in this line may be expedited.

9. In the result, these writ appeals are ordered;

(1) affirming the impugned common order of the learned single Judge to the extent it sets aside the common award

dated 17.05.2005 of the Industrial Tribunal;

(2) the further findings and directions issued through the impugned common order are vacated:

(3) all the matters shall be remitted to the Industrial Tribunal with a direction to dispose of them within an outer limit

of five (5) months from the date of receipt of a copy of this order; and,

(4) the parties to make appearance before the Tribunal on the given date.”

Thus, in view of the above direction of Hon‘ble High Court of Andhra Pradesh in W.A.No.1268 of 2014 and batch

cases. This Tribunal has taken up the matter of industrial dispute for hearing and deciding it afresh in view of the

aforesaid guidelines laid down by the Hon‘ble High Court in Writ Appeal No.1268/2014 vide judgement

dated 20.3.019.

3.

The factual matrix of instant industrial dispute as narrated by the Workman in his claim statement are that,

the Workman joined in the service of the management institution as Messenger from 1.7.1975 to 31.7.1988, and

5.10.95 to 31.3.96 and has rendered unblemished service spreading over a period of about 6 years. The Respondent

has terminated services of Workman by oral orders with effect from 1.4.1996. Further, it is submitted that the

management of Respondent bank decided to give a chance to temporarily employed personnel ―found suitable for

permanent appointment‖ by wait- listing them by offering permanent appointment or waitlisting till such

opportunity arises.

4.

That on 17.11.1987 a settlement was reached between All India State Bank of India Staff Federation and the

Management of State Bank of India - settlement one, under this settlement three categories of employees were

listed. That is, A) those who have completed 240 days in 12 months or less after 1.7.1975. B) those who have

completed 270 days in any continuous block of 36 calendar months after 1.7.1975. C) (i) those who have completed

minimum of 30 days aggregate temporary service in any calendar year after 1.7.1975 or (ii) 70 days aggregate

temporary service in continuous block of 36 months after 1.7.1975.

5.

The persons who satisfied in all the above 4 categories were to be interviewed by a selection committee and

the said selection committee would determine the suitability of the said candidate for permanent appointment.

Therefore, the bank prescribed certain qualifications and from among the candidates satisfying the qualifications the

suitable candidates were enlisted by a selection committee. The Clause 7 of the said agreement provided with the

selected candidate would be wait listed in order of their respective categorization and the selected panel would be

valid upto December, 1991. Clause 10 of the settlement specifically provided that henceforth. ―there will be no

temporary appointments in the subordinate cadre‖, except on a restrictive basis in the specified category, ―from

amongst empanelled candidates as per existing guidelines of the bank‖. The Workman further submits that

consequent upon the said agreement and the draft, a notification was issued in the newspapers. The last date for

responding to the advertisement was 30.8.1988. A written examination followed by viva-voce in May, 1989 was

held. A selected panel was prepared, as per Clause 7 of the agreement, ie. Settlement No.1, the selected panel was to

be valid upto December, 1991, the Workman submits that circular was issued on 26.4.91 by the said letter it is

mentioned that the terms of the agreement dated 17.11.87 was modified vide second agreement dated 16.7.88 was

entered into between the parties. In terms of the said agreement a chance was to be given, ―to all eligible temporary

employees for permanent appointments. The appointments were against the vacancies likely to arise during the

years 1995-96, circular made it clear that in view of the enormity of the problem an extension of the currency of the

panel, eligible temporary employees who have been empanelled could not appear in the earlier interviews and have

been pursuing their cases thereafter, ―will be given another chance to appear for interview‖.

6.

Workman submits that there were total five settlements. The settlement dated 17.11.87 is the 1st

settlement, settlement dated 16.7.88 is 2nd settlement, settlement dated 27.10.88 is the 3rd settlement, then

settlement dated 9.1.91 is 4th settlement and settlement dated 30.7.96 is 5th settlement. In between there is

minutes of conciliation proceedings dated 9.6.95. That due to all these settlements which were extended by

subsequent settlements thereby created reasonable expectations in the list of the selected candidates arose with that

it‘s a question of time their appointments or services would be regularized in the services of the bank. The

Workman was working with the bank on temporary basis was under the bonafide hope that sooner his services will

be regularized with the bank. He is thereby closed all his options elsewhere. It is needless to point out that

employing person to whom hope of employment in substantial terms was made is a facet of Article 21 of the

Constitution of India.

7.

Further Workman submits that the Government of India issued Circular No. F-3/3/104/87-IR, dated

16.8.1990. Under said circular the chief Executives of all public sector banks including the Management herein were

specifically instructed that until the problem of existing temporary employees is fully resolved, no bank is permitted

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9347

to make any permanent appointments. That some of the persons similarly situated like this Workman aggrieved by

the inaction on the part of the management of the bank is not regularizing their services from out of the selected panel

and not clearly focusing the vacancy position, filed W.P. No. 4194/97 before Hon‘ble High court of A.P.. It is

specifically averred in the said writ petition that the Management of the bank had failed to implement the settlement

and that it violates the various fundamental rights guaranteed under the constitution of India. The Hon‘ble High

court of A.P .. by order dated 5.3.97 directed the bank to implement the settlement as amended from time to time. It

also directed the bank to carry out the terms of settlement before the expiry of March, 1997. The Hon‘ble High

Court also recorded finding that the Bank cannot escape its liability of enforcement of the Settlement. In view of the

directions given by the High Court all candidates whose names appeared in the select panels prepared on the basis of

the agreement entered into on 17.11.87 under which the panel was valid upto December, 1991, and on the basis of a

settlement dated 27.10.1988 whereby the panels were made alive upto 31.3.1997 under which the panel was valid

upto December, 1999. The other agreement dated 16.7.1988 under which the panel was valid upto 1992 and on the

basis of the settlement dated 27.10.1998 whereby the panels were made alive upto 31.3.1997 were under the bonafide

impression that their cases will be considered for regularization and were living on the basis of the said reasonable

expectation. Unfortunately, contrary to the aforesaid directions given by the High Court and contrary to the

settlements entered into between the parties, the bank issued proceedings dated 25.3.1997, dated 27.3.1997 and

31.3.1997 instructing the various authorities of the Management not to continue the temporary employees those who

are in services of the bank from 1.4.97. The said order was followed by the Management. Aggrieved by the said

action the Workman herein and similarly situated candidates have filed a writ petition before the Hon'ble High Court

and by way of Writ Petition No.9206/97 seeking a declaration that the proceedings issued by the Deputy General

Manager and the Assistant General Manager (Respondents 3,4 and 5 therein) on 25.3.97, 27.3.97 and 31.3.97 as

illegal and also non-continuance of the Workmen therein in service by absorbing them in the services of the bank as

violative of Section 2(p) and 18(1) read with Rule 58 of Central Rules and sought for specific direction to the bank to

absorb them in service.

8.

Further, Workman submits that in the counter affidavit filed in Writ Petition No.9206/97, the bank has

submitted that it has about 805 branches in Andhra Pradesh alone. It has stated that due to exigencies of

circumstances and on account of the urgent need in its banks, it employed temporary employees in subordinate cadre.

It is pertinent to mention that it does not state the urgent or need or the nature of temporary employees that it had

engaged. Enquiry into the same would reveal that the stand taken by the bank either on the ground of urgent need or

of temporary employees is a façade to perpetuate unfair labour practice. It is designed to on the one hand, keep the

employed in the erroneous zone of hope and on the other to ensure that benefits that a model employer will extend

under various statutes to its employees is not required to be borne out by the bank. A reading of the counter affidavit

would show that the bank would opines that being just fair and reasonable are which obviously is reprehensible and is

a facet of unfair labour practice.

9.

The Workman submits that the bank had referred in its counter affidavit to three settlements dated 17.11.87,

16.7.88 and 27.10.88. The bank in the guise of extending the benefits of the circular of Government dated 16.8.90

stated in its counter affidavit that as follows:

"Government of India, vide its letter dated 16.8.1990, issued guidelines to all the public sector banks with regard to

recruitment and absorption of temporary employees in public sector banks. The said guidelines were issued to

implement on the lines of the approach paper on the issue provided by a committee constituted in this regard. The

Government of India guidelines made it clear that all the public sector banks may follow the provisions laid down in

the approach paper.

The approach paper specified that the cases of temporary employees who had put in not less than 240 days of

temporary service in 12 consecutive Months and who are entitled to benefit of Section 25-F may be decided by

entering into a settlement with the representative union. In respect of temporary employees who had put in less than

240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the Management

so desired, they could enter into a conciliation settlement with the representative union. Para 6(h), it is mentioned

that only those temporary employees who had put in temporary service of 90 or more days after 1.1 1982 would be

eligible for considering under the scheme. Although the Government guidelines envisaged for a settlement in respect

of employees who had put in temporary service of 90 or more days, the bank by way of further concession entered

into settlements Even in respect of those who had put in less than 90 days. As such, it could be Seen that the

settlements are more beneficial to the temporary employees concerned. The approach paper also specify at para 6(c)

that the banks would provide one time opportunity to all the temporary employees and for that purpose temporary

employees worked in the bank on or after 1.1.1982 could be considered for re-employment in terms of the scheme.

The Respondents have gone further wherein even persons working after 1975 were also considered.

As could be seen from the above, there was a genuine effort on the part of the Respondent bank to provide

permanent employment for as many as possible subject to availability of the vacancies.

It is further submitted that at para 6(k) of the approach paper, it was made clear that this would be one time

exercise in full and final settlement of all the aims and disputes for the past period in respect of temporary workmen

9348

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

covered by the settlement. This would mean that the Government of India guidelines would cover only those persons

who were temporarily employed for the period specified therein and not otherwise. As such, it is submitted that the

Respondents have not only followed the Government of India guidelines but in fact covered cases of the employees

who had worked for less than 90 days. As such, question of violation does not arise and in any case those were only

broad guidelines and not directives".

10.

The Workman submits that the bank also referred a subsequent settlement dated 9.1.1991 wherein there is a

clause to the effect- that the panel of temporary employees and the panel of daily wage employees will be operated to

a particular period. Therefore, their cases will not be considered. The Management herein relying upon this settlement

in their impugned action. It is submitted that even the settlement dated 9.1.1991 will not empower the management

to terminate the services of the temporary employees who are working in the bank services like the Workman herein

as it does not specify the termination of the employees. In fact there are so many vacancies wherein the Management

has engaged several new persons as temporary messengers/ attendars/ sweepers etc., even after the judgment of

Hon‘ble High Court without considering the cases of the similarly situated candidates like the Workman herein. It is

submitted inspite of engaging fresh candidates as is now being done by the Management they would have continued

the similarly situated candidates like the Workman herein in the services of the bank and consider their cases for

absorption in view of the circulars issued by Central Government as well as the directions of this Hon'ble Court in

Writ Petition No.4194/97, dated 5.3.97. In view of the circulars issued by the Central Government, the Management

should not have relied upon the settlement dated 9.1.1991. Hence, the impugned action of the Management is illegal,

unjust, violative of fundamental rights such as Articles 14,16 and 21 of the Constitution of India.

11.

The Workman submits that in W.P. No.4194/97 filed by the union of temporary employees where in they

have complained about the non- implementation of the settlements arrived between the parties and sought for

absorption. Such employees in the bank services on permanent basis before the date fixed for carrying out the terms

of settlement, the Court held that the members of the union had been empanelled in the list, they were not regularized

and the time was going to run out to the near future and the Respondent bank and its officers cannot escape from the

liability of enforcing the settlement which has been reached and therefore directed that the bank and the officers shall

implement the settlement dated 17.11.87 as amended from time to time before the expiry of 31.3.97.

12.

Further, it is submitted that in the clause of Settlement it is specifically mentioned that the workmen to be

absorbed/appointed in the bank prohibiting any temporary appointments subsequent to the date of settlement even the

authorities want to make temporary appointments that should be made only from among the empanelled can be

appointed either for temporary vacancy or permanent vacancy except from among the empanelled candidates like the

Workman and that should be continued till they are absorbed. The management committed unfair labour practices

and terminated the services of the candidates with effect from 1.4.1997 which is arbitrary, discriminatory, contrary to

their own guidelines and violative of the constitutional provisions which are guaranteed in Chapter-III of the

Constitution of India.

13.

The Workman submits that it is strange as to how the panels were allowed to lapse by a so-called

Memorandum of Understanding dated 25.2.1997, that the action of terminating such employees like the

Workman by virtue of an impugned oral proceedings without implementing the settlement would be illegal and unfair

labour practice which cannot be allowed to be perpetuated. That the discontinuance of the Workman after 1.4.1996

who had served in the bank in any capacity amounts to retrenchment. It could not have been done without any notice

and it violates Sec.25FF of the Industrial Disputes Act, 1947 and the said action is violative of principles of natural

justice guaranteed under Chapter III of the Constitution of India. This amounts to retrenchment without one month's

notice and taken in view of such notice. Thus, the main proceedings issued by the Respondent is without

jurisdiction and is arbitrary, illegal and therefore liable to be quashed. That the alleged Memorandum of

Understanding dated 27.2.97 does not own any legal entity, as the said Memorandum of Understanding is not

published anywhere to brought to the notice of the Workman whose rights are being affected. It is submitted that

Management did not adhere to the procedure envisaged by the Central Government in its' instructions dated 16.8.90

in the year 1995. The same was not followed in the year 1997 despite there being vacancies.

The

management has followed the procedure of calling candidates through Employment exchange instead of giving

chance to the empanelled candidates like the Workman here. It is pertinent to mention here that the Respondent

Management sent letters to the all similarly situated candidates like the Workman in the month of June, 1997,

subsequent to the passing of impugned termination orders. After knowing the facts that the candidates are litigating,

the Management refused to engage these candidates. It is once again reiterated that the panels are meant for

absorption but not for termination. It was the duty of the Management to engage the empanelled candidates like the

Workman even in temporary vacancies till they are absorbed permanently in regular vacancies. Hence, the action of

the Respondent Management terminating the services of the Workman by oral order dated 1.4.1996 is unjust, illegal,

violative of principles of natural justice and hence, the Management be directed to reinstate and absorb the Workman

and to grant all incidental and consequential benefits.

14.

Per contra, Respondent had filed counter and made a contentions that the reference is not tenable and

contrary to the provisions of I.D. Act, 1947. Respondent submitted that to tide over severe sub-ordinate staff

constraints which arose out of leave vacancies, exigencies, etc., and also owning to the restrictions imposed by the

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Government of India/Reserve Bank of India on intake of staff, the Respondent bank used to engage sub-ordinate staff

like messengers, sweepers, sweeper cum water boys, etc., depending on the availability of work on purely temporary

basis for the smooth and uninterrupted functioning of the branches. It is submitted that the All India State Bank of

India Staff Federation which represents majority of the employees in the State Bank of India comprising about 98% of

the work force as its' members espoused the cause of temporary employees who have put in less than 240 days of

temporary service in 12 calendar months in the bank and who were ineligible for any protection under Industrial

Disputes Act, 1947 to give a chance for being considered for absorption and permanent appointments.

15.

Discussions were held and on 17.11.1987 an agreement was signed between the federation and the

Management bank under Sec. 2(p) read with Sec 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of

Industrial Disputes (Central) Rules 1957. A copy of the said settlement dated 17.11.87 which may be herein after

referred as first settlement is filed and 4 categories were made as it has already been mentioned in the claim statement

above, it need not be repeated here. In the first settlement, it was agreed that the temporary employees as categorized

would be given a chance for being considered for permanent appointment in the bank's service against the vacancies

which are likely to arise during the period 1987 to 1991. On 16.7.88 second settlement was arrived between the

Federation and the Bank whereby it was agreed to substitute the period of consideration of vacancies as 1987 to 1992

in place of 1987 to 1991 as contemplated under the first settlement dated 17.11.1987. This is the second settlement.

A 3rd settlement was entered into on 27.10.88 and it was agreed that the bank's service against the vacancies likely to

arise from 1988 to 1992 was to be considered. Government of India vide its letter dated 16.8.90 issued guidelines to

all the public sector banks with regard to recruitment and absorption of temporary employees in public sector banks.

The said guidelines were issued to implement on the lines of approach paper on the issue provided by a committee

constituted in this regard. Government of India guidelines made it clear that all the public sector banks may follow

the provisions laid down in the approach paper. The approach paper specified that the cases of temporary service in

12 consecutive months and who are entitled to benefit of Sec.25F of the Industrial Disputes Act, 1947 may be decided

by entering into a settlement with the representative union. In respect of temporary employees who had put in less

than 240 days of service in 12 consecutive months or less, a settlement could be avoided and however if the

Management so desired they could enter into a conciliation settlement with the representative union. In para. 6(h) it

is mentioned that only those temporary employees who had put in temporary service of 90 days or more days after

1.1.82 would be eligible for considering under the scheme. Although the Government guidelines envisaged for a

settlement in respect of employees who had put in temporary service of 90 days or more days, the bank by way of a

further concession entered into settlements. Even in respect of those who had put in less than 90 days and also the

bank went a step further and said those persons who are working after 1975 were also considered. Hence, there was

a genuine effort on the part of the Respondent bank to provide as many as possible jobs subject to the availability of

the vacancies. However, para 6 (k) of the approach paper made it clear that it is a one time, exercise in full and final,

settlement of all the claims and disputes for the past period, in respect of temporary workmen covered by the

settlement. Another settlement was entered on 9.1.91 herein after referred as 4th settlement and the time limit was

extended upto 1994 and separate panel was prepared for temporary employees, casual/daily wagers. It was agreed that

while vacancies arising between 1988 to 1994 in respect of temporary employees and in respect of casual/daily

wagers, they can be considered for the vacancies arising between 1995-96 only.

16.

It is submitted that the administrative set up of the Hyderabad Local Head Office comprises of four Zonal

Offices (Zones) at Hyderabad, Vijayawada, Visakhapatnam and Tirupathi covering all the Districts of Andhra

Pradesh. In terms of the settlement the Management after following the procedure laid down therein prepared the

panels of qualified candidates of temporary employees denoted as 1989 panel and also panel of casual/daily wagers

denoted as 1992 panel for giving a chance for being considered for permanent absorption. These panels were

prepared zone-wise separately for messengers and non-messengers in the descending order of temporary service put

in by the candidates during the stipulated period i.e., 1.7.1975 to 31.7.1988. That the Federation approached the

Regional Labour Commissioner(C) for implementation of bi-partite settlement in respect of absorption of temporary

employees. The Regional Labour Commissioner(C) conducted conciliation proceedings and an agreement was

arrived between the Federation and the bank. It was agreed that it would be kept alive upto March, 1997. A copy of

the conciliation proceedings dated 9.2.1995 signed by the parties is filed as material paper. A settlement was arrived

at and an agreement was signed between the Federation and the Management bank on 30.7.1996 under Sec.2 (p) read

with Sec.18(1) of the Industrial Disputes (Central) Rules, 1957, which is hereinafter called as 5th settlement. That on

27.2.1997 a Memorandum of understanding was also signed by the federation‘s affiliate and the bank Management

recording the fact that the exercise of identifying the messengerial vacancies as on 31.12.1994 has since been

completed by Central Office and thereby 403 messengerial vacancies were sanctioned . It was agreed that these

vacancies may be filled from 1989 panel of temporary employees after effecting conversion from full time non-

messengerial staff in the usual manner and the agreement was reached accordingly. It was agreed between the

Federation's affiliate and the Management bank that in terms of the settlement dated 30.7.1996 both the panels of

temporary employees and daily wagers/casual employees would lapse on 31.3.1997. That as agreed upon vacancies

were filled from the panels. The Workman who has put in an aggregate temporary service of less than 240 days in a

continuous block of 12 months period during 1.7.1975 to 31.7.1988 has no right to seek a direction to consider his

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[PART II—SEC. 3(ii)]

candidature for absorption in the Management bank under any rule/law except under the settlement entered into

thereon.

17.

Respondent contended that, in fact, the case of the Workman can be considered under all the five settlements

having got his case considered under provisions of these settlements. All the other provisions and terms of the

settlements are also binding on him/her. The Management bank has not violated any of the provisions of the terms of

the said settlement. That the very preparation and maintenance of panel is in compliance of the terms agreed under

these settlements. These settlements were time bound and they ceased to exist on 31.3.1997. That the bank has never

promised that all the candidates in the panel will be absorbed. In the advertisement itself it was made clear that

candidates will be considered for absorption in the vacancies that may arise upto 1992. Keeping alive the panels after

31.3.1997 is contrary to the settlements arrived between the State Bank of India Staff Federation and the Management

bank. That the settlements are binding on the parties. The Workman is also bound under the terms of the said

settlement. The settlement does not suffer from any ambiguity as their language is very clear. The right under the

settlements is to give them a chance to be considered for future appointment in the bank's services against the

vacancies likely to arise. The settlements were effected to balance the expectations of the temporary employees to be

absorbed in permanent service as against the constitutional rights for all eligible persons to be considered for

employment every time a vacancy arises. That the alleged dispute including the demand for reinstatement has to be

decided in this context. It is submitted that the period of panel list got expired on 31.3.97 and it is an integral term of

the settlement and cannot be modified in any proceedings under the law. These temporary employees who

unfortunately could not be accommodated for want of vacancies have no further rights to be considered for

regularization. That the Hon'ble High Court in WP No.12964/94, held as follows, "It is needless to state that the

settlement arrived at between the All India State Bank of India Staff Federation which, is the majority union and the

bank Management is binding on the Workmen also. It is not at all the case of the Workman that any of the terms of

the settlement has been violated by the bank's Management. If the Workman had worked in the bank on part-time

basis before 31.5.94, that itself would not vest in him a right to claim that his services should be regularized on

permanent basis against a full time cadre post. The claim put forth by the Workman in the present petition is therefore

misconceived and not tenable. However, it is open to the Workman to claim any right which flows from the

settlement between the union and the bank Management. As already pointed out that it is not the grievance of the

Workman that some right which has flown from the settlement in favour of the Workman has been denied by the bank

Management. Therefore, I do not find any ground, let alone substantial ground, to grant the kind of relief sought for

by the Workman. Writ Petition fails and is accordingly dismissed. No costs."

18.

Further, it is contended that if the panels were not lapsed at the end of designated period and allowed to be

continued it would result in making the contracts of temporary employment indirectly permanent through back door

entry, which would not only be contrary to the settlements but also to Articles 14 and 16 of Constitution of India and

deprive the chances of original claimants who would Come through proper recruitment procedure. As their rights

have been crystallized by operation of the settlements. Hence, there is no question of any Legitimate expectation

being violated.

19.

Similarly placed ex-employees filed WP No.9206/1995 and the batch before the Hon'ble High Court of A.P.

and the learned Single Judge allowed the Writ Petitions. Aggrieved by the same WA No.86/98 and the batch was

filed and the Division Bench set aside the order of the Single Judge. Thereafter the ex-temporary employees filed

Special Leave Petition No.11886-11888 of 1998 before the Hon'ble Supreme Court of India. The Hon'ble Supreme

Court of India also dismissed the SLP. Therefore, reference to the Judgement of the Learned Single Judge in WP

No.9206/97 is of no consequences as the same has already been set aside. The observations made in the Judgements

cannot be relied upon for any purpose what so ever. The question of operation of Sec.25F would not come into play.

Further the issue is covered by various Judgements of Hon'ble Supreme Court of India and various Hon'ble High

Courts. Hence, the reference may be ordered that the Workman is not entitled for any relief.

20.

In order to fortify his claim Workman has examined himself as WW1 and also filed documents in evidence

which has been exhibited as Ex.W1 to W4. Further, MW1 has proved documents Ex.W5 to Ex.W7. Workman has

filed photocopies of documents in support of his claim which are discussed as under:-

Ex.W1 to Ex.W3 are the service certificates. Ex.W4 is the employment notification. Ex.W5 is the letter to CGM

(Per) dated 10.10.1990. Ex.W6 is the letter from Government of India reg. recruitment and absorption of temporary

employees dt.19.8.90. Ex.W7 is the letter from Government of India to Respondent dt.30.11.87.

21.

On the other hand, Respondent has examined witness MW1 Sri C.R.M. Sastry and this witness has exhibited

one document, marked as Ex.M1 i.e., the printed book containing settlement between the staff federation and

Management for regularization of services of the temporary employees and casual employees.

22.

Apart from afore mentioned documents, Learned Counsel for Workman has also filed a long list of various

judgements of Hon‘ble Supreme Court as well as Hon‘ble High Court, which we will discuss at appropriate place in

this Award.

23.

Heard the argument of Learned Counsel for Workman as well as for Respondent.

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9351

24.

On the basis of rival pleadings of both the parties and submissions made by the Learned Counsel for both

the parties, following points arise for determination in the industrial dispute :-

I.

Whether the 1st settlement dated 17.11.1987, 2nd settlement dated 16.7.1988, 3rd settlement dated

27.10.1988, 4th settlement dated 9.1.1991 and 5th settlement dated 30.7.1996 entered into between

State Bank of India and All India State Bank of India Staff Federation and also Memorandum of

Understanding are binding upon both the parties?

II.

Whether the action of State Bank of India in terminating the services of Workman Sri Suragana

Neelayya, a Messenger with effect from 1.4.1996 is justified?

III.

Whether the Workman is entitled for absorption on permanent post in the Branch of Respondent

management as per averments made by him in the claim statement?

IV.

To what relief if any the Workman is entitled for?

Findings:-

25.

Point No.I:- Undisputedly settlements dated 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 and 30.7.1996,

minutes of conciliation proceedings and memorandum of understanding dated 27.2.1997 were executed between the

State Bank of India and All India State Bank of India Staff Federation under section 2(p) and 18 (1) of I.D. Act, 1947

read with Rule 58 of Industrial Disputes (Central Rules), 1957.

Section 2(p) of the Industrial Disputes Act, 1947 as follows:-

(p) "settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written

agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding

where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof

has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;

Section 18(1) provides as follows:-

18. Persons on whom settlements and awards are binding.

- [(1) A settlement arrived at by agreement between the employer and Workman otherwise than in the course of

conciliation proceeding shall be binding on the parties to the agreement.

Therefore, in view of the provision contained u/s.18 (1) I.D. Act, 1947, terms and conditions enumerated in the

aforesaid settlements are binding on the parties to the agreement. The Learned Counsel for Workman has argued that

the Workman after going through the selection procedure has successfully been listed in the panel for appointment on

the permanent basis in the Respondent management and the empanelled list has to be valid till last person in the

empanelled list is appointed on permanent basis. But the impugned order dated 25.3.97, 27.3.97 and 31.3.97, has been

issued by Respondent management thereby the services of the Workman has been terminated and the said order is not

in consonance of the terms of the agreement entered into between the parties. Further, Workman submits that the

Respondent in the 5th settlement has mentioned the date i.e., 31.3.1997 for lapse of empanel list which is illegal and

that is not binding upon the Workman. The condition of lapse of empanelment list on 31.3.97 incorporated in the

aforesaid 5th settlement, is arbitrary and illegal.

26.

The perusal of the impugned order dated 25.3.1997 goes to reveal that the Chief/Branch Manager, SBI Zonal

Office has issued the letter to all the branches with regard to the subject not to make any temporary appointments in

the Branch in messengerial category from 1.4.1997. The extract of the said letter is given below:-

―We have been advised by the Deputy General Manager, Zonal Office, Hyderabad that as both the panels of

temporary employees of 1989 and daily wagers/casual labours of 1992 will lapse by 31.3.1997, it has been decided

by Central Office not to make any temporary appointments in messengerial category from 1.4.1997.‖

Thus, from the contents of the aforesaid letter, it manifest that Head Office of State Bank of India vide letter dated

25.3.1997 has issued direction to all its branches not to make any temporary appointments in messengerial category

from 1.4.1997 due to reason of lapse of both panels i.e., 1989 & 1992 on 31.3.1997 as per terms of settlements

entered into by both parties. Further, the contents of the subsequent letter dated 27.3.1997 issued by Respondent

Management is also direction to Branch Manager, State Bank of India not to make any temporary messengerial

category appointment with effect from 1.4.1997 and it has also been communicated to all concerned that the panels

of temporary employees and daily wagers maintained by Zonal offices stand lapsed from 31.1.1997. Further, office

order dated 31.3.1997 has been issued by Respondent management that goes to reveal that the said office order has

been issued to this effect that, ―Consequent on absorption of temporary employees in permanent cadre, it has been

decided by the competent authority that no one onwards, no further daily labour or temporary

employees/appointments should be resorted to/engaged/employed.‖ Therefore, it reflects from the contents of the

aforesaid orders that the temporary appointment in messengerial category and daily labour has been stopped by the

Respondent management with effect from 1.4.1997 because of the lapsed of panel of temporary workers and daily

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[PART II—SEC. 3(ii)]

wagers by 31.3.1997. The agreement for lapse of both the panels on 31.3.1997 is contained in the 5th settlement

which has been arrived at between the parties on dated 30.7.1996 with the consensus of both the parties. Therefore,

Workman can not challenge the terms and conditions contained in settlement dated 30.7.1996 regarding lapse of

panel on 31.3.1997 as agreed between State Bank of India and State Bank of India Staff Federation. As per provision

contained u/s.18(1) of I.D. Act, 1947 the said Agreement dated 30.7.1996 is binding on both the parties.

In the case of Allied Sales Corporation Secunderabad vs.The Authority Under Andhra Pradesh..... 1990 II LLJ

510 AP para 414, Hon‘ble Court have held:-

―4. There was a settlement between the Management and the workmen under Section 18(1) of the Industrial Disputes

Act on 25th April 1983 under which the age of superannuation of the workmen was fixed at 55 years. The settlement

was to be in force upto 30th June 1986 and the next settlement, incorporating practically the same terms, was again

entered into on 4th February 1987 under Section 18(1) of the Industrial Disputes Act. There is no dispute that these

settlements are under Section 18(1).

14. Now the Authority constituted under Section 41(1) of the Act is an authority with very limited jurisdiction. It can

only decide in the first appeal whether a termination by the management is valid or not and is within the parameters

of Section 40 of the Act. The said Authority, in our view, has absolutely no jurisdiction to decide whether a settlement

entered into under Section 18(1) of the Industrial Disputes Act between the representatives of the Workmen and of the

Management, is vitiated by undue influence or misrepresentation or coercion on the part of the Management. The

Authority, namely, the Assistant Commissioner of Labour, was never intended by the A.P. Legislature to have

jurisdiction to go into the question of the validity of a settlement arrived at under Section 18 of the Industrial Disputes

Act by an Industrial Court. That Parliament has, in fact, constituted Industrial Courts under the Industrial Disputes

Act, with extensive powers cannot be disputed. What we mean to say is that the Authority under Section 41(1) of the

A.P. Act has no jurisdiction what-so-ever either to question or to decide about the validity of any such settlements. If

parties to a settlement have a grievance about the validity of a settlement, it is for them to agitate the matter before

the appropriate forum and they cannot ask an Authority constituted under Section 41(1) of the A.P. Shops and

Establishments Act, 1966 with limited jurisdiction, to go into any such question and, that too, incidentally while

deciding whether retirement as per the contract of employment, is legal or not.”

It is not the case of Workman that aforesaid settlements are vitiated by undue influence or misrepresentation or

coercion on the part of the management. If the Workman feeling aggrieved by any terms of settlement/ agreement on

the aforementioned grounds then he can challenge of settlement before a competent authority under the Act, 1947.

But here in the instant matter it is not a case of Workman that aforementioned settlement has been entered into

between the parties on the ground of undue influence or misrepresentation or coercion. Therefore, Workman is barred

to raise any objection in respect of fixing the date of lapse of both panels on 31.3.1997 as agreed between both the

parties and Workman can not challenge any terms of said Agreement.

Further in the case of Herbertsons Limited Vs. Workmen of Herbertsons Limited and Ors, 1977 AIR 322,

Hon‘ble Supreme Court have held:-

The Tribunal thought that the question of the quantum of membership of the 2nd Respondent did not call for a finding

at all in view of 1his Court's order. As observed above that was not a correct assumption. On the other hand, we feel

that this view of the Tribunal has led it to approach the matter in an entirely erroneous manner. The Tribunal is,

rightly enough, conscious that under section 18 (1) of the Industrial Disputes Act the settlement was binding on the

company and the members of the 3rd Respondent union. Even so, the Tribunal devoted nearly half of its order in

scanning the evidence given by the company and Respondent No. 3 to find out whether the terms of the settlement had

been explained by the President of the union to the workmen or not and whether the workers voluntarily accepted the

settlement knowing all the "consequences". This to our mind is again an entirely wrong approach.

“When a recognised union negotiates with an employer the workers as individuals do not come into the picture. It is

not necessary that each individual worker should know the implications of the settlement since a recognised union,

which is expected to protect the legitimate interests of labour, enters into a settlement in the best interests of labour.

This would be the normal rule. We cannot altogether rule out exceptional cases where there may be allegations of

mala fides, fraud or even corruption or other induce- ments. Nothing of that kind has been suggested against the

President of the 3rd Respondent in this case. That being the position, prima facie, this is a settlement in the course of

collective bargaining and, therefore, is entitled to due weight and consideration.

It is not possible to scan the settlement in bits and pieces and hold some parts good and acceptable and others bad.

Unless it can be demonstrated that the objectionable portion is such that it completely outweighs all the other

advantages gained the Court will be slow to hold a settle- ment as unfair and unjust. The settlement has to be

accepted or rejected as a whole and we are unable to reject it as a whole as unfair or unjust. Even before this Court

the 3rd Respondent representing admittedly the large majority of the workmen has stood by this settlement and that is

a strong factor which it is difficult to ignore. As stated elsewhere in the judgment, we cannot also be oblivious of the

fact that all workmen of the company have accepted the settlement. Besides, the period of settlement has since expired

and we are informed that the employer and the 3rd Respondent are negotiating another settlement with further

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9353

improvements. These factors, apart from what has been stated above, and the need for industrial peace and harmony

when a union backed by a large majority of workmen has accepted a settlement in the course of collective bargaining

have impelled us not to interfere with this settlement. That being the position, we unhold the settlement as fair and just

and order that the award of the Tribunal shall be substituted by the settlement dated October 18, 1973. The said

settlement shall be the substituted award. The appeal is disposed of accordingly. There will be no order as to costs.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court as discussed above, the contention of the

Workman that the date fixed for lapse of empanelled list on 31.3.1997 for appointment to the permanent post vide 5th

Settlement dated 30.7.1996 is arbitrary, illegal is not untenable. The recognized union of Workmen has negotiated

with the Respondent Bank Management representing large number of Workmen and the Workman as individual do

not come into picture. Workman in the instant case has work as temporary Workmen in the Respondent Branch and

in response of Notification he had applied for inclusion of his name in the panel and he was selected for inclusion

his name in the panel list to be utilized for absorption of such Workman to permanent post in order of their seniority

in the list. The Settlement dated 30.7.1996 between State Bank of India and All India State Bank of India Staff

Federation under Sec.2(p) and Sec.18(1) of I.D. Act, 1947 has clearly provided as regard non-messengerial position

and it is agreed that all such posts sanctioned fallen vacant upto 31.3.1997 shall be filled before empanel list is

allowed to lapse. Thus, in view of law laid down by the Hon‘ble Apex Court, in the instant case, Agreement dated

30.7.1996 was entered into between both the parties in respect of lapsing of the both the panels on 31.3.1997 and

absorption of the Workmen from panel list was subject to availability of vacancy of post likely to arise upto

31.3.1997, have a binding force on Workman as well as management of State Bank of India in view of provision

contained under section 18 (1) of I.D. Act, 1947.

Thus, Point No.I is answered against the Workman and in favour of the Respondent.

27.

Point No.II:- Firstly, it is submitted on behalf of the Workman that the Respondent has terminated his

services by oral order on 1.4.1996 without issuing any notice or paying any salary or compensation in lieu thereof.

Therefore, the termination order of the Workman from service is in violation of provision contained Under Section 25

F of I.D. Act, 1947. Therefore, the order is liable to be set aside.

28.

On the other hand, Respondent counsel contended that Workman has not worked for 240 days in any

preceding calendar year. Therefore, reference of the industrial dispute is not relevant. In this context, the Workman

has examined himself as WW1 who has reiterated that Workman has been terminated from service by Respondent on

1.4.1996 without notice of salary or compensation in lieu thereof. Before examining the claim of the Workman on

merit it would be apposite to reproduce the provision contained under section 25 F:-

Section 25F provides:-

Conditions precedent to retrenchment of workmen.- No Workman employed in any industry who has been in

continuous service for not less than one year under an employer shall be retrenched by that employer until—

(a) the Workman has been given one month' s notice in writing indicating the reasons for retrenchment and the period

of notice has expired, or the Workman has been paid in lieu of such notice, wages for the period of the notice:

(b) the Workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days'

average pay for every completed year of continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified

by the appropriate Government by notification in the Official Gazette].

Compensation to workmen in case of transfer of undertakings.

Section 25B defines the term continuous service which provides

Definition of continuous service.- For the purposes of this Chapter,--

(1) a Workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service,

including service which may be interrupted on account of sickness or authorized leave or an accident or a strike

which is not illegal, or a lock- out or a cessation of work which is not due to any fault on the part of the Workman;

(2) where a Workman is not in continuous service within the meaning of clause (1) for a period of one year or six

months, he shall be deemed to be in continuous service under an employer--

(a) for a period of one year, if the Workman, during a period of twelve calendar months preceding the date with

reference to which calculation is to be made, has actually worked under the employer for not less than--

(i) one hundred and ninety days in the case of a Workman employed below ground in a mine; and

(ii) two hundred and forty days, in any other case;

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[PART II—SEC. 3(ii)]

In order to prove the fact of 240 days of service within 12 months of a calendar year just preceding from the date of

termination, the initial burden of proof lies upon the Workman and the Workman has to prove this factum by

adducing his oral as well as documentary evidence in support of his claim.

Further, how to calculate 240 days of service by the Workman in a calendar year. In this context the reference of

decisions of Hon‘ble Supreme Court is relevant and the same are discussed below:-

In Rajasthan State Ganganagar S. Mills Ltd. v. State of Rajasthan and Anr. (2004) Apex Court held:

"It was the case of the Workman that he had worked for more than 240 days in the year concerned. This claim was

denied by the appellant. It was for the claimant to lead evidence to show that he had worked for 240 days in the year

preceding the date of his termination. He has filed an affidavit. It is statement which is in his favor and that cannot be

regarded as sufficient evidence for any Court or Tribunal to come to the conclusion that 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 period was not sufficient for the Labour Court held that the

Workman had worked for 240 days as claimed."

In Municipal Corporation, Faridabad v. Siri Niwas (2004 (8) SCC 195), held "the burden was on the Workman to

show that he was working for more than 240 days in the preceding one year prior to his alleged retrenchment." In

M.P. Electricity Board v. Hariram (2004 (8) SCC 246) the position was again reiterated in paragraph 11 as follows:

"The above burden having not been discharged and the Labour 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 ..‖

In the case of Manager, RBI, Bangalore vs. S Mani (2005) SCC Page 100, the 3 Judges Bench of the Apex

Court held that "the initial burden of proof was on the Workman to show that he had completed 240 days of service."

Hon'ble Apex Court in the case of Mohan Lal vs Management BEL 1981 SCC page 225 has laid down the

principle that how to count 240 days of service within one year it is held: "Clause (2)(a) provides for a fiction

to treat a Workman in continuous service for a period of one year despite the fact that he has not rendered

uninterrupted service for a period of one year but he has rendered period of 240 days during the period of 12

calendar service for months counting backwards and just preceding the relevant date being the date of retrenchment.

In other words, in order to invoke the fiction enacted in clause (2)(a) it is necessary to determine first the relevant

date, ie the date of termination of service which is complained of as retrenchment. After that date is ascertained. move

backward to a period of 12 months just preceding the date of retrenchment and then ascertain whether within the

period of 12 months, the Workman has rendered service for a period of 240 days. If these three facts are affirmatively

answered in favor of the Workman pursuant to the deeming fiction enacted in clause (2)(a) it will have to be assumed

that the Workman is in continuous service for a period of one year and he will satisfy the eligibility qualification

enacted in Section 25-F"

“14. We have already extracted section 25B since its amendment and the change in language is the legislative

exposition of which note must be taken. In fact, we need not further dilate upon this aspect because in Surendra

Kumar Verma and Ors. v. Central Government Industrial-cum-Labour Court, New Delhi and Anr., Chinnappa

Reddy. J., after noticing the amendment and referring to the decision in Sur Enamel and Stamping Works (P)

Ltd case, held as under:

"These changes brought about by Act 36 of 1964 appear to be clearly designed to provide that a Workman who has

actually worked under the employer for not less than 240 days during a period of twelve months shall be deemed to

have been in continuous service for a period of one year whether or not he has in fact been in such continuous service

for a period of one year. It is enough that he has worked for 240 days in a period of 12 months, it is not necessary that

he should have been in the service of the employer for one whole year."

In a concurring judgment Pathak J. agreed with this interpretation of section 25B(2). Therefore, both on principle

and on precedent it must be held that section 25B(2) comprehends a situation where a Workman is not in employment

for a period of 12 calendar months, but has rendered service for a period of 240 days within the period of 12

calendar months commencing and counting backwards from the relevant date, i.e. the date of retrenchment. If he has,

he would be deemed to be in continuous service for a period of one year for the purpose of section 25B and

Chapter VA.”

Thus, in view of the law laid down by the Hon‘ble Apex Court as discussed above the initial burden of proof lies

upon the Workman to show that he has completed 240 days of the service with the Respondent just preceding from

the date of his termination. Further, in respect of the employment of calculating the 240 days service provision

contained under Section 25-F read with Section 25-B of the I.D. Act, 1947.

29.

Now, in view of the provision contained under Section 25 F and law laid down by the Hon‘ble Apex Court,

we have to examine whether the Workman has discharged his initial burden of proof in respect of his claim of 240

days continuous service in a calendar year just preceding from the date of his termination i.e., 1.4.1996. The

[भाग II—खण् ड 3(ii)]

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witness WW1 in chief examination has stated that he had worked for 254 days in the Respondent organization from

1985 to 1996. As per provision contained u/s.25 F read with Sec.25 B of I.D.Act, 1947, the Petitioner has to

adduce the evidence of continuous service of 240 days in a calendar year just preceding from the date of his

termination i.e., 1.4.1996. But as per the chief statement of witness WW1, vide Ex.W1 and Ex.W2 he had worked

continuously for 75 days in the branch during the years 1985- 1988. Further, vide Ex.W3 Petitioner has worked

from 5.10.95 to 31.3.96 for 179 days. Further, Petitioner witness has not adduced any evidence that he had worked

for 240 days continuously in a calendar year of 12 months just preceding from the date of his termination i.e.,

1.4.1996. However, the documents in evidence filed by the Petitioner do not corroborate the averment of the claim

statement as these documents are not exhibited or proved by the statement of WW1 or any other witness‘s evidence.

Further, the perusal of the document goes to reveal that the certificate allegedly issued by Respondent which goes to

reveal that the Petitioner had worked as a temporary messenger at the branch of the Respondent bank from 1.7.75 to

1.4.1996, do not support the claim of the Petitioner that he had worked for 240 days continuously in a calendar year

just preceding from the date of his termination ie., 1.4.1996. Therefore, the claim of the Petitioner that he has been

terminated in contravention of provision contained under section 25 F of the Act is not corroborated by his oral or

documentary evidence. Thus, it is clear from the testimony of WW1 that the Workman had not worked for 240 days

continuously in any 12 months of a calendar year just preceding from the date of his termination in the Respondent

bank. Therefore, Workman failed to establish his plea by his oral and documentary evidence that he had worked for

240 days continuously in calendar year just preceding from the date of his termination i.e., 1.4.1996. Thus, the claim

of the Workman that he has been terminated by oral order without issuing notice or payment in lieu after termination,

in contravention of Section 25 F of Industrial Disputes Act, 1947 is not tenable. However the documents filed by the

Workman in support of his claim, number of days worked with the Respondent goes to reveal that the Workman

had worked intermittently as daily wager depending upon availability of work in branch. Workman did not file any

document of appointment letter or salary slips in support of his claim for appointment as a non-messenger in the

Respondent branch on temporary basis.

30.

Per contra, the Learned Counsel for Respondent has submitted the allegation of Workman that he was

terminated from services is not correct. As the vacancies were filled up on regular basis in order of their respective

seniority the non-engagement of the Workman does not amount to termination. Further, Respondent contended that

no law provide that even though there is no work temporary employee should be continued in the bank work as the

very engagement of Workman was subject to availability of work. Therefore, the allegation that the bank has

indulged in unfair labour practice is incorrect.

31.

Thus, in view of the fore gone discussion and contentions made by the Respondent, I find the force in the

argument advanced by the Respondent that in the instant matter, Workman was not terminated from service by order

dated 1.4.1996 rather he was disengaged in view of the non-availability of the work in the branch. Further, there

was direction issued by the Head Office of the Respondent authority not to engage any daily wager Workman/

temporary Worker w.e.f. 1.4.1997. Thus, such disengagement of Workman does not amount to termination.

Moreover, the Workman failed to prove his claim that he was terminated in contravention of provision of Sec.25F of

the I.D. Act, 1947 as he failed to establish his plea by any oral or documentary evidence that he had worked for 240

days continuously in a twelve months of calendar year just preceding from date of termination i.e., 1.4.1996.

32.

Further, perusal of the order dated 25.3.1997 goes to reveal that the Chief Branch Manager, State Bank of

India has issued the letter to Zonal Office with direction to all its branches to this effect that they have been advised

by the DGM, Zonal Office, Hyderabad that as both the panel of temporary employees of 1989 and daily

wagers/casual labour of 1992 will lapse on 31.3.1997 it has been decided by central office not to make any temporary

appointments in messengerial cadre from 1.4.1997, therefore it was directed to issue suitable instructions not to make

temporary appointments from 1.4.1997. There is no mention in this order that the Workman herein has been

terminated from service by this order.

33.

Further, the circular dated 27.3.1997 was issued by DGM, SBI to all branches in commercial network in

respect of the non-appointment of temporary employees in subordinate cadre and it has directed not to make any

temporary employment in the subordinate cadre with effect from 1.4.97 and further, it has directed to ensure that no

temporary/casual/daily basis appointment of the petty cash. Further, it is directed to all Branch Managers that any

deviation in this regard will be viewed seriously. Thus, these circulars do not reflect that the Workman has been

terminated from service by this order.

34.

Similarly, office order dated 31.3.1997 is simply a direction to all branches of the Respondent bank by

DGM that no further daily labour should be engaged or employed. Therefore, the plea of the Workman that he has

been terminated by the aforesaid order dated 25.3.1997, 27.3.1997 and 31.3.1997 from the service by the Respondent

is not acceptable. The evidence adduced by the Workman clearly goes to reveal that he had worked as a daily wager

for which he has been paid wages according to number of working days. As there was an order for prohibition for

engaging temporary workmen, in the bank, therefore, Workman could not be engaged by the Respondent for work

from 1.4.1997 and there after. It is settled law that the daily wagers are engaged by the employer depending upon

the availability of work and as the work was not available the Workman was not engaged further by the Respondent

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[PART II—SEC. 3(ii)]

management. Therefore, the Workman on the ground of number of days he had worked in the Respondent bank

cannot claim any right to reinstate him into the employment. As the Workman failed to prove the mandatory

condition of 240 days of continuous service as required under Sec.25F of I.D. Act, 1947. Therefore, the

disengagement of Workman from work can not be termed in contravention of provision contained under Sec.25F and

25 B of the I.D. Act, 1947.

Thus, this point is answered against the Workman and in favour of Respondent.

35.

Point No.III:- In this context, the Workman has contended that the management failed to implement the

selected panels during its valid tenure. The management adopted the back door methods contrary to the settlements

and filled up the vacancies. The same is evident from the proceedings dated 18.11.1993 a copy of the same is filed in

the material papers and the same may be read as part of the claim statement. Further, it is submitted that management

has to adhere the procedure issued by the Central Government, the instructions dated 16.8.1990 in the year 1995, but

same was not followed in the year 1997 despite there being vacancies. The management has followed the procedure

of calling candidates through employment exchange instead of giving chance to the empanelled candidates like the

Workman herein. The management sent call letters to the similarly situated candidates like the Workman in the month

of June 1997 subsequent to issuance of impugned termination orders. After knowing the fact that they are litigating

the issue by way of dispute, the management has refused to engage those candidates, the copies of call letters issued

are filed herein along with claim petition. The Workman herein reiterates that the panels are meant for absorption but

not for termination. In view of the same a duty is cast upon the Respondent management to engage the empanelled

candidates like the Workman herein even in temporary vacancies till they are absorbed permanently in regular

vacancies.

36.

On the other hand, Respondent has contended that the Federation approached Regional Labour

Commissioner (Central) for implementation of bipartite settlement in respect of the absorption of temporary

employees. The Regional Labour Commissioner (Central) conducted conciliation proceedings and agreement was

arrived at between the Federation and the Management bank. It is submitted that it was agreed between the

Federation and the Management that both the panels of temporary employees and daily wagers /casual labour would

be kept alive upto March, 1997 and the vacancies as agreed to under the afore set out settlements will be filled from

both the lists concurrently. A copy of the conciliation proceedings dated 9.6.1995 signed by the parties to the dispute

is filed as a material paper. Further, it is submitted that the settlement was arrived at and an agreement was signed

between the Federation and the Management bank on 30.7.1996 under Section 2(p) read with Section 18(1) of the

Industrial Disputes (Central) Rules 1957 which is binding on the parties. A copy of this agreement which hereinafter

may be referred to as 5th settlement for brevity, is also filed as a material paper. The 5th settlement dated 30.7.1996

whereunder the earlier four settlements dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 were also referred, it

was agreed to, by the Federation and the Management bank that both the panels of temporary employees and daily

wagers/casual employees will be kept alive upto March, 1997 for filling the vacancies existing/arrived at as on

31.12.1994 as per the norms agreed to between the bank and Federation and that thereafter the said panels would

lapse. It was also agreed that within the framework of the above settlements the modalities about drawing names

from either the panel of temporary employees or the panel of daily wagers and casual labour would be decided

administratively on circle to circle basis depending upon the local requirements in consultation with the Federation‘s

affiliate by the Circle management. It was further agreed that all messenger real vacancies/positions in the subordinate

cadre including part-time attendants specifically provided as leave reserve will be filled by the end of 31.3.1997.

Further, Respondent contended that on 27.2.1997 a memorandum of understanding was also signed between the

Federation‘s affiliate and the bank management regarding the fact that the exercise of identifying the messengerial

vacancies as on 31.12.1994 has since been completed by central office and thereby 403 messengerial vacancies were

sanctioned to the circle of the Management bank and it was agreed that these vacancies may be filled from 1989 panel

of temporary employees after effecting conversion from full time non-messengerial staff in the usual manner and the

agreement was reached upon. Further, it was agreed between the Federations affiliate and the management bank

that in terms of the settlement dated 30.7.1996 both the panels of temporary employees and daily wagers /casual

employees would lapse on 31.3.1997.

37.

The Workman has contended that the empanelled list prepared by the Respondent management for

appointment of temporary and daily wage Workers to the permanent post cannot lapse unless until it is exhausted by

appointing all the empanelled persons and it should continue even after 31.3.1997, i.e., the date fixed for the lapse of

panel. It is undisputed that the date of lapse of empanelled list of Workmen has been fixed to 31.3.1997 as

mentioned in the settlement dated 30.7.1996, and agreed between the parties. It is settled law that and once the life

of panel list lapses on the date as agreed between the parties it cannot be extended beyond that date. In the instant

case the panel list of the workmen was valid upto 31.3.1997 in view of the terms and conditions enumerated in the 5th

Settlement entered into between the parties. As the lapse of panel i.e., 31.3.1997 has been agreed by State Bank of

India and State Bank of India Staff Federation through 5th Settlement, the Workman is not competent to challenge the

same.

In this context I would like to take reference of the decision of the apex court in the case of Syndicate Bank and Ors

vs. Shankar Paul and Ors , AIR 1997 SC 3091, therein the Hon‘ble Apex Court have held:-

[भाग II—खण् ड 3(ii)]

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“Till 1982, the branches of the appellant Bank in Calcutta region were recruiting persons locally to work as

temporary attenders in leave vacancies. In view of the revised procedure prescribed by the Government of India in

respect of such temporary appointments, the Calcutta regional office of the appellant Bank issued a circular to all of

its branches on 14.8.1982, instructing all the branches under it to discontinue the old practice from 1.6.1982 and

appoint only empanelled candidates. The regional office was to prepare a panel of eligible candidates, after calling

names from the local/district employment exchange, and split it up branch-wise. Following that new procedure yearly

panels were prepared thereafter. Names of the Respondents were for the first time included in the panel prepared for

the period 7.2.1987 to 6.2.1988. By its letter dated 7.2.1987 the Bank had informed the Respondents that the panel

was valid for one year only and that inclusion of their names in the panel was not to confer on them any right to seek

permanent appointment in the service of the bank. Considering the object with which the panel was prepared and the

fact that it was an yearly panel expiring on 6.2.1988, we are of the opinion that the Respondents did not get any right,

because of inclusion of their names in the said panel, for permanent absorption in the service of the Bank. Whatever

conditional right they had came to an end with the expiry of the panel. The claim of the Respondents, as contained in

the writ petition was thus misconceived and therefore the learned single Judge and the Division Bench, when it first

decided the appeal, were right in dismissing the writ petition and the appeal respectively.”

Thus, in view of the above law laid down by the Hon‘ble Apex Court and in view of the terms and conditions of the

5th Settlement the contention of the Workman that empanelled list should continue even after 31.3.1997 till the last

Workman in the panel is absorbed is not tenable. The contention of the Workman is baseless in view of recital in the

settlement. Therefore, in view of the fore gone discussion and finding given at Point No. I regarding binding nature

of Settlements and terms and conditions enumerated therein, in view of the provision contained u/s.18(1) of the I.D.

Act, 1947, I am of the considered view that life of panels lapsed on 31.3.1997 in view of terms of settlement dated

30.7.1996 and plea of Workman that the panel shall continue even after 31.3.1997 till last man absorbed has no

legal force and same is untenable.

38.

Undisputedly, settlement agreement dated 30.7.1996 was executed between the State Bank of India and

State Bank of India Staff Federation and in that settlement it was agreed that both the panels of temporary employees

and daily wagers/ casual employees will be used for filling vacancies existing as on 31.12.1994 as per the norms

agreed between the bank and the Federation. These empanelled workmen were to be given a chance for permanent

appointment in the bank against vacancies arising up to December 1994 whereas the daily wagers/ casual employees

were to be considered against the vacancies arise from January 1995 to December 1996, whereby the said panel

would lapse. It was agreed that the vacancies falls upto 31.3.1997 shall be filled before the empanelled list is

allowed to lapse. Thus, the claim of the Workman to the post of permanent non-messenger in the Respondent

management was subject to the availability of the sanctioned post and vacancies arising upto 31.3.1997. The

workmen given chance to the permanent post were seniors in number of working days in panel list and Workman

herein was junior to those workmen. Therefore, Workman could not be given absorption to permanent post being

junior to other workmen in the panel list.

39.

Moreover, the Respondent management witness MW1 in chief statement has given the evidence that, ― He

did not complete 240 days of service in any year. In pursuance of settlements between the union and the bank, even

though who have not completed 240 days of service in a year, were also empanelled for being considered for

appointment in future vacancies.‖ Although this witness was cross examined by the Petitioner but the above

statement of the management witness in chief remained uncontroverted, as the witness MW1 was not cross examined

by Petitioner on this point. Therefore, the claim of the Petitioner that he has been removed from service by the

management illegally is untenable. Further, witness MW1 in his chief statement has stated that, the workman was

engaged in leave vacancies in the bank on Temporary basis. This witness has categorically stated that, ―Some of the

empanelled candidates were appointed on seniority basis and number of days.‖ This statement of witness MW1

remained uncontroverted as the Petitioner did not cross examine the witness MW1 on this point. Therefore, the

Petitioner Workman as per number of working days, failed to fulfil eligibility criteria of working days as required

for regularisation. Therefore, he was not given regularisation in the employment of the Respondent. Moreover, the

Workman witness WW1 in his cross examination has admitted the fact that ― It is true that no juniors to me were

given employment by the bank on regular basis.‖ Therefore, in view of the statement of WW1 in cross examination,

the claim of the Petitioner that he was refused regularization by the Respondent management illegally, is untenable.

Thus, from the above statement of the Workman witness WW1 it is clear that the panel was prepared in terms of

various settlements entered into between Staff Federation of State Bank of India and State Bank of India and it was

prepared on the basis of number of days of work put in by the temporary employees. Further, the Workman himself

admitted that some of the temporary employees whose names were included in the panel were given regular

appointment in the bank in order of their seniority in the panel and he is not having any document to show that any

person who worked for less number of days than the Workman was given appointment in the bank. Therefore, the

allegation of the Workman that the regular appointment has been made by the bank from the panel list in breach of

the terms of the settlement and violation of seniority of panel list is not proved by this evidence of WW1. Thus,

there is no evidence on record that bank has given the appointment to the temporary employees as well as daily

wagers from the panel list 1989 and 1992 in breach of seniority of the temporary employees in the list. There is no

evidence of jumbling in the panel list to make appointment of any permanent Workman in breach of the seniority.

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[PART II—SEC. 3(ii)]

Therefore, I am constrained to hold that the Respondent Management has appointed the workmen from panel list in

order of seniority and there is no jumbling of workmen in the panel list before it got lapsed on 31.3.1997.

40.

However, Workman has taken the plea that the panels of Workmen for absorption in the employment of the

Respondent banks (panels of temporary employees and daily wagers) has been lapsed on 31.3.1997 in contravention

of terms of settlement as the object of preparing the entire empanelment of temporary and daily wagers was to

provide them permanent employment and till both the panel lists exhausted the panel list cannot be lapsed on

31.3.1997 and the date of lapsing of the panel on 31.3.1997 has been fixed by the Respondent arbitrarily without any

authority.

41.

In this context, the perusal of Settlement dated 30.7.1996 reveals that the 5th Settlement dated 30.7.1996

was entered under Section 2(p) and 18(1) of I.D. Act, 1947 read with Rule 58 of Industrial Dispute (Central) Rules

1957. This settlement has been entered into by the competent parties and in this settlement parties thereto agreed

that both the panels of temporary employees and daily wagers/casual employees will lapse on 31.3.1997. Thus the

date of lapse of panel was fixed by both the parties with consensus under the settlement dated 30.7.1996 and same is

binding upon the Workman under the provision of Section 18(1) of I.D. Act, 1947. Moreover, this issue of binding

force of the settlement dated 17.11.1987, 16.7.1988, 27.10.1988 and 9.1.1991 has already been discussed, decided at

finding in Point No.I of this award. However, the legality and validity of the aforementioned settlement has not been

challenged by the Workman before any competent forum. Thus, claim of Workman that the date of lapse of panel

i.e., 31.3.1997 has been fixed arbitrarily by the Respondent bank is untenable. As regard the claim of Workman for

his absorption to the permanent post it is settled law that the Workman can not claim his regularization to permanent

post merely on the basis of number of working days.

42.

In this context the reference of the decision of Hon‘ble Supreme Court in the case of Oil and Natural Gas

Corporation vs Krishan Gopal 2020(3) SCALE 272, date of decision 7.2.2020 is relevant therein Hon‘ble

Supreme Court have has laid down principle regarding regularization of the Workman on permanent posts. Hon‘ble

Supreme Court have laid down the prepositions of regularization of the workmen to permanent post is as under:-

―(i) Wide as they are, the powers of the Labour Court and the Industrial Court cannot extend to a direction to order

regularisation, where such a direction would in the context of public employment offend the provisions contained

in Article 14 of the Constitution;

(ii) The statutory power of the Labour Court or Industrial Court to grant relief to workmen including the status of

permanency continues to exist in circumstances where the employer has indulged in an unfair labour practice by not

filling up permanent posts even though such posts are available and by continuing to employ workmen as temporary

or daily wage employees despite their performing the same work as regular workmen on lower wages;

(iii) The power to create permanent or sanctioned posts lies outside the judicial domain and where no posts are

available, a direction to grant regularisation would be impermissible merely on the basis of the number of years of

service;

(iv) Where an employer has regularised similarly situated workmen either in a scheme or otherwise, it would be open

to workmen who have been deprived of the same benefit at par with the workmen who have been regularised to make

a complaint before the Labour or Industrial Court, since the deprivation of the benefit would amount to a violation of

Article 14; and

(v) In order to constitute an unfair labour practice under Section 2(ra) read with Item 10 of the Vth Schedule of the

ID Act, the employer should be engaging workmen as badlis, temporaries or casuals, and continuing them for years,

with the object of depriving them of the benefits payable to permanent workmen.

Thus, in view of the principles laid down by the Hon‘ble Supreme Court as discussed above, in the instant matter the

Workman utterly failed to prove his claim by adducing any documentary or oral evidence that the employer has

indulged in unfair labour practice by not filling the permanent posts even though such posts are available and by

continuing to employ workmen as temporary or daily wage employees despite their performance was the same work,

as regular workmen on lower wages.

43.

Respondent has contended that all the vacancies exist and arise upto 31.3.1997 has been filled up from the

panel list in order of seniority and no vacancy exists or arises as on 31.3.1997 remained unfilled. Further, it is

contended that as per terms of settlement the life of panel lists has been lapsed on 31.3.1997, hence, there is no

occasion to extend the life of panel lists beyond 31.3.1997. However, the workman failed to prove contrary by any

evidence to the aforesaid contention of the Respondent that the vacancies were existing as on 31.3.1997 and the

workman was not given absorption to the permanent post in order of his seniority. It is settled law that the power to

create permanent or sanctioned post lies outside the judicial domain and where no posts are available, a direction to

grant regularization would be impermissible merely on the basis of the number of years of service. Therefore, the

claim of the workman on this ground also not acceptable.

44.

Further, as per the of settlement, panel was prepared for absorption of the workmen on the permanent posts

has already been lapsed on 31.3.1997 and the vacancies existing and arising upto 31.12.1994 and upto 31.3.1997 as

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

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settlement dated 30.7.1996 has been filled up from the panel by appointing the workmen as per seniority in the panel

list. Workman witness WW1 in his cross examination has himself admitted this fact that, some of the temporary

employees whose names were included in the panel were given regular appointment in the bank in order of their

seniority in the panel. The Workman failed to show that there was any breach of terms of settlement has been

committed by the Respondent in appointment to permanent post from aforesaid panel list.

45.

As discussed in preceding paragraph of this Award, the life of the panel has not been extended beyond

31.3.1997, by any further settlement hence, the panel list in which name of the Workman was included got expired

on 31.3.1997. It is not the case of the Workman that Respondent has regularized similarly situated workmen either in

the scheme or otherwise and the Workman has been deprived of same benefit on par with those workmen or the

vacancies remained unfilled on the date of lapse of panels i.e., 31.3.1997, Industrial Tribunal has no jurisdiction to

extend the date of lapse of panel i.e., 31.3.1997. This Tribunal can not order for regularization of workmen to the

permanent post in contravention of the provision of Article 14 of the Constitution of India.

In the case of Mahboob Deepak vs. Nagar Panchayat Gajraula & Anr, Civil Appeal No.5875/2007 date of

judgement 13.12.2007, Hon‘ble Supreme Court have held:-

“8. Respondent is a Local Authority. The terms and conditions of employment of the employees are governed by a

statute and statutory rules. No appointment can be made by a Local Authority without following the provisions of the

recruitment rules. Any appointment made in violation of the said rules as also the constitutional scheme of equality as

contained in Articles 14 and 16 of the Constitution of India would be a nullity.

9. Due to some exigency of work, although recruitment on daily wages or on an ad hoc basis was permissible, but by

reason thereof an employee cannot claim any right to be permanently absorbed in service or made permanent in

absence of any statute or statutory rules. Merely because an employee has completed 240 days of work in a year

preceding the date of retrenchment, the same would not mean that his services were liable to be regularized.”

Therefore, in view of the law laid down by the Hon‘ble Apex Court, the claim of the Workman for absorption merely

on the basis of number of day of work in the Respondent bank Branch is not acceptable. As regard plea of the

Workman that the Workman should have been given employment even after 31.3.1997 as temporary Workman, it is

the discretion of Respondent to engage the Workman depending upon availability of work and this Tribunal can not

direct the Respondent to engage the Workman in the absent of such rule/scheme.

46.

In view of principle laid down by Hon‘ble Apex Court as discussed above, in the instant matter Workman

utterly failed to establish the fact of rendering continuous service for a period of 240 days of service within a period

of 12 calendar months commencing and coming backward from relevant date i.e., the date of retrenchment, if has he

would be denied to be in continuous service for a period of one year. Therefore, the provision contained under

Sec.25F of retrenchment is not applicable to Workman.

Counsel for Workman has relied upon number of decisions of Hon‘ble High Court and Hon'ble Supreme Court and

few of them are discussed herein:-

In the case of F.C.I., vs. Kamdhenu Cattle Feed Industries 1993 (1) SCC 71, therein Hon‘ble Supreme Court have

held:-

“7. In contractual sphere as in all other State actions, the State and all its instrumentalities have to conform to Article

14 of the Constitution of which non-arbitrariness is a significant facet. There is no unfettered discretion in public law:

A public authority possesses powers only to use them for public good. This impose the duty to act fairly and to adopt

a procedure which is `fairplay in action'. Due observance of this obligation as a part of good administration raises a

reasonable or legitimate expectation in every citizen to be treated fairly in his interaction with the State and its

instrumentalities, with this element forming a necessary component of the decision making process in all State

actions. To satisfy this requirement of non- arbitrariness in a State action, it is, therefore, necessary to consider and

give due weight to the reasonable or legitimate expectations of the persons likely lo be affected by the decision or else

that unfairness in the exercise of the power may amount to an abuse or excess of power apart from affecting the bona

fides of the decision in a given case. The decision so made would be exposed to challenge on the ground of

arbitrariness. Rule of law does not completely eliminate discretion in the exercise of power, as it is unrealistic, but

providers for control of its exercise by judicial review.”

In the case of State Bank of India, R.O., Vijayawada vs. Industrial Tribunal, Hyderabad WP No.193/1997,

therein Hon‘ble High Court have held,

―Sri Krovvidi Narasimham, the learned counsel for the 2nd respondent contends, supporting the award that it was a

permanent vacancy and even though the 2nd respondent was appointed on temporary basis, his services were not

liable to be terminated and he was to be regularised into service on permanent basis. Shastry award warrants that no

temporary appointment can be made to a permanent post. But the matter is now covered by two division bench

judgements dated 28.11.1986 in W.A. No.791 of 1986 and 25.8.1987 in W.A. No.270 of 1982. The ratio decided in the

two judgements is to the effect that there cannot be any mandate to appoint employees on permanent basis when the

requirement was for appointment on temporary basis. But it is held in the said judgements that when a temporary

9360

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

appointee is ousted from service and not for misconduct and, if again temporary appointment is to be made, then, the

case of such temporary appointee who was ousted, has got to be considered in accordance with Sec. 25-H of the

Act.”

In the case of State of Haryana and others vs. Piara Singh and others. 1992 (4) SCC 118, therein Hon‘ble

Supreme Court have held:-

“ 49. If for any reason an adhoc or temporary employee is continued for a fairly long spell, the authorities must

consider his case for regularization provided he is eligible and qualified according to the rules and his service record

is satisfactory and his appointment does not run counter to the reservation policy of the state.”

In the above cited judgements by the Workman the facts of the case are different hence do not apply to instant case

of Workman.

47.

On the other hand, in support of his contention Respondent has examined witness MW1 and MW1 in chief

examination states that, Settlements i.e., on 17.11.1987, 16.7.1988, 27.10.1988, 9.1.1991 were entered into between

the SBI and SBI Staff Federation for filling up of the vacancies that arise up to 1994 for those temporary employees

who has worked on scale wages. Further, MW1 states that two different panels for messengers and non-messengers

as per the eligibility criteria prescribed by the bank. There are four modules in Andhra Pradesh and they are

Hyderabad, Tirupathi, Vijayawada and Visakhapatnam. MW1 states that the temporary employees so empanelled

were given permanent absorption depending upon the vacancies so arise strictly in terms of the settlement. MW1

states that on 9.6.1995 conciliation proceeding was held before the RLC(C), Hyderabad and in said proceedings it

was decided that the panels will be kept live up to 31.3.1997 and vacancies will be filled from both the lists

concurrently. Further, MW1 states that on 30.7.1996 another settlement was entered between the SBI and All

India SBI Staff Federation providing for filling up of the vacancies arising up to December 1994 in respect of

subordinate cadre and daily wage /casual wage employees out of panel so prepared were to be considered against

vacancies arising from January 1995 to December 1996, thereafter the said panels lapse. MW1 states that it was also

agreed that all the non- messenger positions in subordinate cadre including part time attendants specially provided as

leave reserve will be filled before 31.3.1997 and as regards to non-messengerial positions it is agreed that all such

posts sanctioned and fallen vacant up to 31.3.1997 shall be filled before the empanelled list is allowed to lapse. Thus

in both the cases empanelled list were lapsed on 1.4.1997. Further, witness states that on 27.2.1997 a

memorandum of understanding was reached between the SBI and SBI Staff Federation providing that both the panels

above mentioned will lapse on 31.3.1997. Ex.M1 contains, Memorandum of understanding and statements giving

the particulars of 1989 non-messenger panel, statement of 1989 non- messenger panel and statement of 1992 panel.

Further, witness states that petitioner was included in the 1989 panel. As the existing vacancies at that time were

exhausted and his turn did not come he could not be given permanent employment in the bank as per the agreements.

All the appointments were made strictly in accordance with the settlements reached from time to time between SBI

and SBI staff federation and as per seniority, number of days of temporary service put in by them in the bank in the

given period. Further, MW1 states petitioner was not sponsored by any employment exchange he did not undergo

the regular process of selection required for appointment as a regular non-messenger the petitioner has not worked for

240 days in any year in his entire temporary service in the bank. The petitioner and other temporary employees were

terminated from service by the bank. Further, MW1 states that the vacancies were filled up on regular basis with the

temporary employees from the panels and these panels were expired in terms of the settlements so reached and there

were no vacancies to absorb such employees. Thus, witness MW1 has proved the documents contained in Ex.M1

printed book and also contentions made in the counter. However, MW1 was cross examined by the Petitioner

Counsel. But nothing has been elicited in his cross examination so as to discredit the testimony of the witness

MW1 as regards the date of lapse of both the panels on 31.3.1997 and reasons assigned for non-absorption of the

Petitioner from the panel list to the permanent post. Moreover the witness MW1 was re-examined by the Respondent

and the witness MW1 states that panels were expired in terms of the settlement send absorptions to the extent of the

available vacancies were made. There was no termination of any temporary messenger as such but their services were

not utilized after the cut off date as the available vacancies were already filled up and most of these Petitioners were

not in the service of the bank as on the date of the expiry date of the panels. Therefore, in view of the aforesaid

testimony of the MW1 in re-examination in the absence of cross examination remained uncontraverted, the claim of

the Workman that he was entitled for absorption in permanent post in the branch of Respondent Management on the

basis of panel list is found not established.

This point is answered against the Workman.

48.

Point No.IV:- In view of the discussion and finding given at Point Nos. I, II and III, the Workman is not

entitled for any relief and claim statement of Workman sans merit and liable to be dismissed.

This Point is answered accordingly.

AWARD

In view of the fore gone discussion, it is held that the action of the Respondent bank in terminating the

services of Sri Suragana Neelayya, Ex. Messenger by way of oral orders w.e.f. 1.4.1996 is justified. Hence, the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9361

Petitioner is not entitled for any relief as prayed for. The claim statement filed by Workman sans merit, hence,

dismissed.

Award is passed accordingly. Transmit.

Typed to my dictation by Smt. K. Phani Gowri, Personal Assistant, transcribed by her, corrected and signed

by me on this the 8th day of June, 2026.

IRFAN QAMAR, Presiding Officer

Appendix of evidence

Witnesses examined for the

Witnesses examined for the

Petitioner

Respondent

WW1: Sri Suragana Neelayya

MW1: Sri C.R.M. Sastry

Documents marked for the Petitioner

Ex.W1 to:

Ex.W3:

Photocopies of Service certificates

Ex.W4:

Photocopy of employment notification

Ex.W5:

Photocopy of letter to CGM (Per) dated 10.10.1990

Ex.W6:

Photocopy of the letter from Government of India reg. recruitment and absorption of temporary

employees dt.19.8.90

Ex.W7:

Photocopy of the letter from Government of India to Respondent dt.30.11.87.

Documents marked for the Respondent

Ex.M1:

Photocopy of printed book containing settlement between the staff federation and Management for

regularization of services of the temporary employees and casual employees.

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1759.— औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

आई आई िी रुड़की के प्रबंधतंत्र के संबद्ध गनयोजकों और श्री पूरन ससह और 45 अन्द्य के बीच अनुबंध में गनर्ददष्ट औद्योगगक

गववाद केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-II, नई ददल्ली, पंचाि (ररफरेन्द्स न.- 21/2012,

22/2012, 23/2012, 24/2012, 25/2012, 26/2012, 47/2012, 48/2012, 50/2012, 80/2012, 81/2012,

82/2012, 83/2012, 84/2012, 98/2012, 99/2012, 100/2012, 101/2012, 102/2012, 103/2012,

104/2012, 105/2012, 106/2012, 107/2012, 120/2012, 126/2012, 127/2012, 133/2012, 139/2012,

140/2012, 144/2012, 145/2012, 146/2012, 147/2012, 148/2012, 149/2012, 150/2012, 151/2012,

152/2012, 154/2012, 165/2012, 169/2012, 170/2012, 171/2012, 173/2012, 21/2013) को जैसा दक

अनुलग्नक में ददखाया गया है, प्रकागशत करती है l

[la

एल- 42025/07/2026/231-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1759.— In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 21/2012, 22/2012, 23/2012, 24/2012, 25/2012, 26/2012,

47/2012, 48/2012, 50/2012, 80/2012, 81/2012, 82/2012, 83/2012, 84/2012, 98/2012, 99/2012, 100/2012, 101/2012,

102/2012, 103/2012, 104/2012, 105/2012, 106/2012, 107/2012, 120/2012, 126/2012, 127/2012, 133/2012, 139/2012,

140/2012, 144/2012, 145/2012, 146/2012, 147/2012, 148/2012, 149/2012, 150/2012, 151/2012, 152/2012, 154/2012,

165/2012, 169/2012, 170/2012, 171/2012, 173/2012, 21/2013) of the Central Government Industrial Tribunal

cum Labour Court-II, New Delhi as shown in the Annexure, in the Industrial dispute between the employers in

relation to IIT Roorkee and Sh. Pooran Singh and 45 Ors.

[No. L- 42025/07/2026/231-(IR(DU)]

SALONI, Deputy Director

9362

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

BEFORE CENTRAL GOVT. INDUSTRIAL TRIBUNAL CUM – LABOUR COURT NO. II,

NEW DELHI

I.D. No.21/2012, 22/2012, 23/2012, 24/2012, 25/2012, 26/2012, 47/2012, 48/2012, 50/2012, 80/2012,

81/2012, 82/2012, 83/2012, 84/2012, 98/2012, 99/2012, 100/2012, 101/2012, 102/2012, 103/2012,

104/2012, 105/2012, 106/2012, 107/2012, 120/2012, 126/2012, 127/2012, 133/2012, 139/2012, 140/2012,

144/2012, 145/2012, 146/2012, 147/2012, 148/2012, 149/2012, 150/2012, 151/2012, 152/2012, 154/2012,

165/2012, 169/2012, 170/2012, 171/2012, 173/2012, 21/2013

Sh. Pooran Singh and 45 Ors. vs. I.I.T. Roorkee

1. Pooran Singh (ID No. 21/2012)

2. Sherpal Singh (ID No. 22/2012)

3. Suresh Chand (ID No. 23/2012)

4. Ramesh Kumar (ID No. 24/2012)

5. Yogesh Kumar (ID No. 25/2012)

6. Munesh (ID No. 26/2012)

7. Pravesh Ali (ID No. 47/2012)

8. Rama Kant (ID No. 48/2012)

9. BhupenderNathPandey (ID No. 50/2012)

10. Gurmel Singh (ID No. 80/2012)

11. Sarita Gupta (ID No. 81/2012)

12. Mustafa (ID No. 82/2012)

13. Ram Kumar (ID No. 83/2012)

14. Ajay Pratap Singh (ID No. 84/2012)

15. Dharampal (ID No. 98/2012)

16. SandeepGoel (ID No. 99/2012)

17. Ram Avtar (ID No. 100/2012)

18. Jatin Kumar (ID No. 101/2012)

19. Rajpal Singh (ID No. 102/2012)

20. UshaBarthwal (ID No. 103/2012)

21. Ganesh Singh Negi (ID No. 104/2012)

22. TassubarHussain (ID No. 105/2012)

23. Dinesh Kumar (ID No. 106/2012)

24. Dasi Ram (ID No. 107/2012)

25. SampurnaNand (ID No. 120/2012)

26. Karnpal (ID No. 126/2012)

27. Rameshwar Prasad (ID No. 127/2012)

28. Khalil Ahmed (ID No. 133/2012)

29. Mitra Pal (ID No. 139/2012)

30. Shiv Raj Negi (ID No. 140/2012)

31. Murtaza Ahmed (ID No. 144/2012)

32. Harish Upadhyaya (ID No. 145/2012)

33. Sulekh Chand (ID No. 146/2012)

34. Sunil Pal (ID No. 147/2012)

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9363

35. Rafaqat Ali (ID No. 148/2012)

36. Sushila Devi (ID No. 149/2012)

37. Satyapal Singh (ID No. 150/2012)

38. Rajender Kumar (ID No. 151/2012)

39. Ravindra Singh Rana (ID No. 152/2012)

40. Madhu Sharma (ID No. 154/2012)

41. Chandra (ID No. 165/2012)

42. Tasleem (ID No. 169/2012)

43. Amar Singh (ID No. 170/2012)

44. Arvind Kumar (ID No. 171/2012)

45. Rameshwar Mishra (ID No. 173/2012)

46. General Secretary (ID No. 21/2013)

… Applicants/Claimants

Versus

The Registrar,

IIT Roorkee,

Roorkee (Uttarakhand)

… Management/respondent

Counsels:

For Applicant/ Claimant:

Sh. Amit Sharma, Ld. AR.

For Management/ Respondent:

Sh. SandeepPrabhakar, Sh. Amit Kumar and Sh. Ravi Mishra, Ld. ARs.

Award

11.06.2026

By this composite order, I shall dispose of 46 cases filed by different workmen against the management of

IIT Roorkee. In 2012 and 2013, 46 different references were sent to this tribunal by the appropriate authority for

adjudication. The claimants‘ name, their respective posts, years of services rendered (As of 2025), are given below in

the table:

S.

No.

Name

Post

Year of

Engagement

Years of Service (as of

2025)

1

Yogesh Kumar

Sub-station Attendant (Construction)

Nov 1986

39 years

2

Munesh Kumar

Baildar (Construction Division)

Nov 1988

37 years

3

Ramesh Kumar

Unskilled Work Supervisor

Mar 1985

Retired on 31.12.2018

4

Ramakant

Computer Operator (CAO Unit)

Jul 1989

Retired on 31.10.2022

5

Sherpal Singh

Chowkidar (Security Section)

Dec 1989

36 years

6

Pooran Singh

Chowkidar (Students Hostel)

Apr 1989

36 years

7

B.N. Pandey

Work Supervisor

Sep 1986

Retired on 31.12.2021

9364

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

8

Suresh Chand

Peon (Office of DOSW)

Aug 1989

36 years

9

Dasi Ram

Mason (Construction Division)

Apr 1989

36 years

10

Smt. UshaBarthwal

Telephone Operator

Dec 1991

Retired on 31.07.2020

11

Dharam Pal

Helper (Construction Division)

Aug 1988

37 years

12

SandeepGoyal

Technical Assistant-B (Computer Ctr)

Aug 1993

32 years

13

Ram Avatar

Beldar (Construction Division)

Jan 1981

Retired on 31.10.2023

14

Jatin Kumar

Draftsman (Civil, Construction)

Nov 1986

39 years

15

Raj Pal Singh

Mali (Construction Division)

May 1991

Retired on 31.10.2023

16

Ganesh Singh Negi

Mate (Construction Division)

Jan 1988

37 years

17

TassubarHussain

Pump Operator (Construction Division)

Sep 1983

Retired on 30.06.2023

18

Dinesh Kumar

Helper (Unskilled Daily Wager)

Mar 1988

37 years

19

SampuranNand

Telephone Operator (Unskilled)

Apr 1991

34 years

20

Pravesh Ali

Mate (Unskilled)

Aug 1989

36 years

21

Karan Pal

Carpenter (Construction Division)

Jul 1984

Retired on 31.10.2023

22

Rameshwar Prasad

Beldar (Construction Division)

Jun 1987

38 years

23

Khalil Ahmed

Mali (Unskilled)

Aug 1991

34 years

24

Murtaza

Beldar (Unskilled Daily Wager)

Feb 1989

Retired on 31.12.2018

25

Harish Updhayay

Telephone Operator (Unskilled)

Mar 1979

Retired on 30.09.2018

26

Sulekh Chand

Mali (Unskilled Daily Wager)

Jun 1989

36 years

27

Sunil Pal

Technical Assistant-C

Dec 1992

33 years

28

Rifaqat Ali

Mali/Beldar (Unskilled)

Jun 1989

Passed away on

04.09.2021

29

Sushila Devi

Mali/Beldar (Unskilled)

May 1988

Retired on 30.06.2023

30

Satyapal Singh

Mali/Beldar (Unskilled)

Oct 1987

Retired on 31.12.2021

31

Rajender Kumar

Beldar (Unskilled)

Nov 1985

Passed away on

23.12.2023

32

Ravindra Singh

Technical Assistant-C

Dec 1992

Retired on 30.04.2023

33

Madhu Sharma

Telephone Operator (Unskilled)

Feb 1981

Retired on 30.04.2021

34

Chandra

Beldar (Unskilled)

Jun 1988

37 years

35

Tasleem

Helper (Unskilled)

Aug 1987

38 years

36

Amar Singh Rana

Mali/Beldar (Unskilled)

Apr 1992

33 years

37

Arvind Kumar

Chowkidar (Unskilled)

Dec 1990

35 years

38

Rameshwar Mishra

Chowkidar (Unskilled)

Jul 1993

32 years

39

Mittar Pal

Chowkidar (Unskilled)

May,89

Retired (31.10.2023)

40

Shiv Raj Negi

Peon (Unskilled)

Jul 1989

36 years

41

Gurmel Singh

Helper (Unskilled)

Nov 1987

38 years

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9365

42

Sarita Gupta

Work Supervisor (Skilled)

Aug 1989

Retired on 31.12.2016

43

Mustafa

Helper (Unskilled)

May 1987

38 years

44

Ram Kumar

Beldar (Unskilled)

Oct 1988

37 years

45

Ajay Pratap Singh

Technical Assistant-B (Contract)

Jul 1993

32 years

46

Devender S. Verma

Lab Technician (Contract)

Dec 1992

33 years

2.

All 46 references contained a similar wording, where the issue for adjudication was whether the action

of management of IIT Roorkee in not regularizing the claimants (respective posts), despite their continuous

services for (X) years (Refer to the table above for the claimants‘ post and years of services rendered), is

justified? To what relief the workmen are entitled?

3.

Pursuant to the notice, the claimants appeared and filed their respective claim statements. They

submitted that they were working on different posts such as Helper, Peon, Beldar, Chowkidar, Mason,

Telephone Operator, Pump Operator, Technical Assistant etc. by the then University of Roorkee, now IIT

Roorkee, on muster roll or daily wage basis on various dates between the years 1985 to 2000. Since their

respective dates of engagement, the claimants have been rendering services in their respective departments

such as DOSW Office, Construction Division, Security Section, Vehicle Section, Engineering department,

maintenance, Horticulture Division etc., regularly.

4.

The claimants, both individually and collectively, made a number of representations and personal efforts

by appearing before the competent authorities seeking regularization of their services. However, despite

having rendered continuousservices for more than 30 years, the claimants have never been regularized against

permanent posts, depriving them of their rightful service benefits and opportunities for career progression.

5.

The

respondent

institution

had

proposed

a

plan

known

as

the

Y-Pool

Scheme

for

regularization/absorption of the eligible workers whose names were part of the above-mentioned list. However,

they were neither consulted nor informed about their inclusion/exclusion from the said Scheme. Consequently,

they lost the benefit of regularization due to non-transparency and lack of opportunities, which led to monetary

loss and career stagnation.

6.

Despite repeated inquiries and efforts by the claimants, they were from time to time verbally assured

that the matter regarding the regularization of other Y-Pool employees was being considered by the Board of

Governors of IIT Roorkee. Nevertheless, no concrete decision was ever taken with respect to the claimants‘

cases, which resulted in continued uncertainty and mental harassment to the claimants who have rendered

sincere and uninterrupted services over the years.

7.

In fact, some of the claimants were issued appreciation letters by the officers of the Institute recognizing

their dedicated services. The divisions/departments in which the claimants have been serving are of vital

importance to the Institute, and the duties of the claimants are essential to the normal functioning and

maintenance of the campus infrastructure and services.

8.

The claimants came to know that a few other workers, who were in similar position or even junior to

them and not included in the Y-Pool list, were regularized, while the claimants have been overlooked without

any reasonable justification. Instead of amicably resolving the matter and recognizing the long-standing

contributions of the claimants, the respondent institution advised the claimants on several occasions to raise an

industrial dispute in their individual capacities for the redressal of their grievances. Theclaimants, having spent

the prime years of their lives in the expectation of regularization, are now facing severe emotional and

financial difficulties. Due to the long wait and the advancing age of many claimants, they have missed other

employment opportunities and are now finding it difficult to sustain themselves and their dependents amidst

rising living costs.

9.

Lastly, the claimants prayed to pass an order directing the respondent to place them on regular pay

scales, in accordance with their respective posts, qualifications, and long-standing service, from the dates they

became eligible. The claimants also prayed for appropriate upgradation as per the career advancement policies

applicable to their respective posts, with effect from the dates on which they became entitled to such benefits.

10.

In response, the management filed its written statement, submitting that the current industrial disputes

involve a total of 46 claimants who were working as daily wage employees in different capacities at the then

University of Roorkee, now Indian Institute of Technology, Roorkee (IIT Roorkee). Each of the claimants was

put to work on various posts (indicated in the table above), and their services were hired at various points of

time, some as far back as 1981, on a purely temporary, casual, and intermittent basis. While being put to work

9366

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

for the first time, the University of Roorkee was under the administrative control of the Government of Uttar

Pradesh. After the establishment of the new state of Uttarakhand in 2000, the institution fell within the purview

of the Government of Uttarakhand and later was given the status of an Indian Institute of Technology by way

of the Institutes of Technology (Amendment) Act, 2002, which placed it within the Ministry of Human

Resource Development (MHRD), Government of India.

11.

The claimants were working on several temporary tasks being executed by the University from time to

time ranging from maintenance and construction activities to research and consulting work, financed either by

plan grants or external projects. Their employment was not in accordance with the formal recruitment or

selection procedure but was made for addressing immediate operational requirements. They were classified as

unskilled, casual workers and were being paid wages on a daily basis. Their jobs had no promise of continuity

and was renewable solely on work necessity. In 1993, some contractual and daily wage laborers, including the

current claimants, presented demands for regularization of their services. This resulted in a long phase of

unrest and agitation, both inside the campus and the local town area of Roorkee that accommodates defence-

sensitive installments and army cantonment areas. In view of the worsening situation of law and order, the

local administration stepped in and mediated talks between University officials and agitating workers.

12.

These talks finally resulted in two Memoranda of Understanding (MoUs) dated 22.11.1994 and

20.02.1996, signed in the presence of the civil administration. The terms of which were as under:

Such daily wager /contractual workers, who have been registered, would be considered for

appointment against vacant posts according to their qualifications and on the basis of their

seniority and on the basis of their performance/merit as per its well established recruitment

rules, regulations and guidelines.

The workers would be selected on the basis of advertisements which are issued by the

management as per the rules of the establishment.

Recruitment process of these categorized workers would be carried out on priority basis

against the future vacant posts and they will not be retrenched.

13.

Accordingly, The MoUs had general understandings between the workers and the University, wherein

all registered daily wage/contract workers would be eligible for regular appointments against future vacancies.

These appointments would be made strictly as per the University's recruitment rules on the basis of merit,

seniority, performance, and required qualifications. The MoUs clearly indicated that the retrenchment of such

workers was not to take place and that they were to be accorded priority in appointments to vacancies, based

on their eligibility and suitability.

14.

In accordance with these agreements, the University of Roorkee made a list of 361 such workers who

were enrolled as daily wagers and placed them under what was referred to as the "Y-Pool." All the claimants

of the present cases fell within this Y-Pool. Multiple recruitment drives were carried out through public

advertisements dated 24.10.1994, 21.11.1994, 13.06.1995, 26.07.1995, 27.08.1996, and 27.03.1997. These

recruitment drives were in accordance with institutional regulations and invited applications from Y-Pool

workers, amongst others. For the regular vacancies, appointments were done through a stringent process of

applications scrutiny, qualification assessment, and interviews carried out by properly constituted Selection

Committees. Amongst the total 361 Y-Pool workers, 211 were recruited successfully on regular posts, subject

to their eligibility, merit, and performance. But the rest, including the current claimants, were not chosen since

they either did not have the mandatory educational qualification or were considered unsuitable during the

selection.

15.

The management further submits that the MoUs were not binding settlements in the sense of the

Industrial Disputes Act, 1947, but mere informal understandings aimed at peaceful resolution of the agitation.

Thus, there was no legal or automatic right of regularization to any Y-Pool worker just on the basis of the

MoUs. It is also important to observe that the basic academic qualification for Group D entry-level posts in the

then University of Roorkee was 8th pass in the case of Peons and Laboratory Attendants and experience with

literacy for Mali and Sweeper posts. After its reorganization into IIT Roorkee, the minimum qualifications

were updated and for all Group D posts, 10th standard pass with one year of technical training became a

requirement. For Group C vacancies like Junior Assistants or Junior Laboratory Assistants, the minimum

qualification became Bachelor's Degree or three-year engineering diploma and computer literacy.

16.

These new eligibility criteria made all the Y-Pool employees ineligible, since most of them, including

the claimants, lacked even the minimum educational qualifications essential for appointment in the said cadres.

Incidentally, some of the claimants were 10th standard fail and so were even ineligible for Group D posts. In

view of these amended rules and detailed eligibility-based selection process, the claimants were not appointed

to any regular positions. However, the administration still kept them on daily wages and even granted welfare

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9367

privileges like Provident Fund, Pension, Gratuity, subsidized quarters, revision in daily wages, and use of the

Institute's Hospital, benefits not generally extended to strictly casual workers.

17.

In the meantime, the Government of Uttar Pradesh issued a blanket prohibition on all non-teaching

appointments in government institutions vide orders dated 03.11.1997 and 09.12.1997. The Roorkee

University, although eager to make necessary appointments, had to take special permission for any such

appointment, and only those considered essential were appointed temporarily. The claimants were,

nonetheless, at liberty to apply to these vacancies subject to qualifications. With the creation of the State of

Uttarakhand and subsequently the change in the University to IIT Roorkee, these restrictions were continued

and tightened under Government of India policy.

18.

The Ministry of HRD, Government of India, laid down a policy guideline on all IITs following

recommendations of the Expenditure Reforms Commission (ERC), which observed an unsustainable staff ratio

of non-faculty to faculty staff in IITs. A decision was made to bring the ratio initially to 1:1.5 and subsequently

to 1:1.1. Consequently, all IITs, including IIT Roorkee, were not allowed to appoint non-teaching personnel at

will unless the faculty-to-non-faculty ratio was brought first within the allowable range. This policy imposed a

serious constraint on any normal recruitment of Group C or Group D staff. As a cost-saving measure, IITs

were encouraged to reduce their non-teaching staff strength through special voluntary retirement schemes

(SVRS), which IIT Roorkee also considered.

19.

In spite of these general limitations, IIT Roorkee was sincere in making efforts to take into account

absorption of the last batch of Y-Pool employees. In 2004, an agenda item to that purpose was put before the

Board of Governors (BOG) and the Finance Committee. The proposal was, however, rejected by both statutory

bodies on grounds of policy limitations and reiterated the central government's guidance on sticking to the

fixed faculty-staff ratio. The claimants' continued to work on a contractual, casual, and need-based basis.

20.

The management argued that in light of established judicial precedents established by the Hon'ble

Supreme Court, specifically in Secretary, State of Karnataka and Others vs. Umadevi and Others

Citation: (2006) 4 SCC 1; AIR 2006 SC 1806,Official Liquidator vs. Dayanand and Others Citation: (2008)

10 SCC 1, Union of India and Others vs. Vartak Labour Union Citation: (2011) 4 SCC 200; AIR 2011

SCW 178 , and other binding precedents, there is no legal entitlement to regularization or absorption in

government service except when the engagement has been made through an appropriate legal recruitment

process. These decisions categorically held that neither long service as a daily wager nor contractual

engagement entitles any one to permanent appointment legally. The courts highlighted that recruitment in

public institutions had to comply with Articles 14 and 16 of the Constitution, and absorption without due

process would constitute illegal backdoor entry and breach of the constitutional obligation.

21.

The management raised objections to the maintainability of the current petitions. It submitted that the

reference had been made mechanically, without any application of mind, and that the espousal of the dispute

by the purported IIT Roorkee Karamchari Union is faulty. There is no proof that the aforesaid union is

registered or that it represents a large number of employees of IIT Roorkee. Also, there is nothing to prove that

the claimants are even members of the aforesaid union.

22.

On the merits of the case, the management simply reiterates that the claimants were given various

opportunities to seek regular appointments through public notices made prior and subsequent to the MoUs.

Some of the claimants even took their interviews, but were not shortlisted on merit. Some others never stood

eligible at all for want of qualifications. The filling of all jobs has been strictly done in terms of sanctioned

rules, regulations, and procedures. The claimants were never on the rolls as regular employees and never gone

through any formal selection process.

23.

In spite of the non-permanent character of their work, the administration has proceeded in good faith

by providing statutory and welfare concessions. These actions, however, do not grant them any legal right to

absorption. The claimants' continued service is a mere consequence of necessities and does not present any

compulsory duty on the institution to regularize their services.

In view of the above averments, the management prayed for dismissal of the claimants' request for

regularization.

24.

No issue other than the terms of reference was framed in the present cases. However, in certain cases,

an additional issue was framed, which reads as under:

Whether the dispute has not acquired status of industrial dispute for want of espousal by the union

or considerable number of workmen in the establishment of the management?

This additional issue was framed in the following cases:

9368

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

I.D. No.

Title

21/2012

Sh. Pooran Singh vs. I.I.T. Roorkee

22/2012

Sh. Sherpal Singh vs. I.I.T. Roorkee

23/2012

Sh. Suresh Chand vs. I.I.T. Roorkee

24/2012

Sh. Ramesh Kumar vs. I.I.T. Roorkee

25/2012

Sh. Yogesh Kumar vs. I.I.T. Roorkee

26/2012

Sh. Munesh vs. I.I.T. Roorkee

48/2012

Sh. Rama Kant vs. I.I.T. Roorkee

120/2012

Sh. SampurnaNand vs. I.I.T. Roorkee

126/2012

Sh. Karnpal vs. I.I.T. Roorkee

127/2012

Sh. Rameshwar Prasad vs. I.I.T. Roorkee

133/2012

Sh. Khalil Ahmed vs. I.I.T. Roorkee

144/2012

Sh. Murtaza Ahmed vs. I.I.T. Roorkee

145/2012

Sh. Harish Upadhyaya vs. I.I.T. Roorkee

152/2012

Sh. Ravindra Singh Rana vs. I.I.T. Roorkee

25 At the outset, this Tribunal considers it appropriate to deal with theissue raised by the Management

regarding absence of proper espousal of these cases. The objection of the management is found to be devoid

of merit. It is an admitted position that the references in the present matters have been made by the

Appropriate Government in exercise of its powers under Section 10(1) of the Industrial Disputes Act, 1947,

upon forming an opinion as to the existence of an industrial dispute between the parties. The scope of

interference with such a reference is limited, and this Court cannot sit in appeal over the satisfaction of the

Appropriate Government unless the reference is ex facie without jurisdiction. In these cases, the disputes

have been raised individually by 46 workmen, all of whom are similarly situated and directly affected by the

action of the Management. The dispute has been pursued through authorized representatives, and therefore,

the requirement of espousal stands duly satisfied. The contention of the management the dispute ought to

have been properly espoused is legally untenable, as espousal by a substantial body of affected workmen

themselves is sufficient in law. Accordingly, the objection regarding espousal is rejected.

26.

The claimants examined themselves as WWs and tendered their respective affidavits in evidence.

The affidavits filed by all the claimants are mostly identical materially, other than the changes in names and

particular. Through their affidavits, the claimants deposed that they were initially engaged by the erstwhile

University of Roorkee, now IIT Roorkee, on their respective posts on muster roll basis and had continued to

discharge duties for the management for several years. They stated that they had been performing their duties

continuously and to the satisfaction of their superiors and the work performed by them was of a perennial

and continuous nature.

27.

The

claimants

further

deposed

that

IIT

Roorkee

had

formulated

a

scheme

for

absorption/regularization of Y-Pool workers but they were not extended the benefit of the scheme.

According to them, despite rendering long years of service, their services had not been regularized and they

had been deprived of the benefits available to regular employees. They also asserted that certain similarly

situated workers had been regularized whereas their cases were not considered.

28.

The claimants further deposed that they were entitled to regularization on their respective posts,

grant of regular pay scales and all consequential service benefits, including arrears and other benefits

admissible to regular employees. In support of their case, they relied upon documents exhibited as Ex. WW-

1/1(employment certificate duly signed by Chief warden, RajendraBhawan, University of Roorkee) and Ex.

WW-1/2 (demand letter).

29.

During their cross-examination, the claimants consistently stated that they had been engaged by the

erstwhile University of Roorkee on daily wage, contractual or project basis several decades ago and had

continued to render services to the management. Most of the claimants admitted that at the time of their

initial engagement no public advertisement had been issued, no names had been requisitioned from the

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9369

Employment Exchange and no regular selection process had been conducted. However, they stated that they

had continued to discharge their services for the management without any interruption for long periods.

30.

The claimants admitted that the University of Roorkee, while under the administrative control of the

Government of Uttar Pradesh, had engaged a large number of workmen in different departments and projects

according to its requirements. Several claimants stated that although they were initially engaged in particular

projects, the work given to them continued for years and they continued to work thereafter.

31.

The claimants admitted that the management had prepared a Y-Pool including 361 daily

wage/contractual workers for consideration against available vacancies. They further admitted that

appointments were made from among the Y-Pool workers through a selection process and that 211 persons

were ultimately appointed. The claimants also admitted that they too were included in the Y-Pool and had

participated in one or more selection processes conducted by the management from time to time.

32.

Several claimants deposed that they had applied for posts such as Peon, Mali, Gardner, Lab

Attendant, Key Punch Operator, Senior Computer Operator and other equivalent posts under the Y-Pool

exercise. Some of them stated that they had appeared in interviews and in some cases, had even been

considered in the selection process, though they were not appointed.

33.

The claimants further admitted that the University of Roorkee was converted into IIT Roorkee and

was placed under the administrative control of the Government of India. Several claimants stated that they

were not aware of the later changes in recruitment policies, staffing ratios and eligibility criteria after such

conversion. However, some of them deposed that after the formation of IIT Roorkee, many persons working

in technical and other positions were regularized and that the management continued to carry out recruitment

exercises for various posts.

34.

It also emerged from the testimony of the claimants that the management had taken their services

over long periods ranging in several cases for more than three decades. The claimants deposed that they

continued to receive wages from the management and contributions towards their EPF accounts were

regularly deposited. Some of the claimants further admitted that they were getting certain facilities granted

by the Institute, including medical facilities available in the Institute hospital andresidential accommodation

within the campus. However, the claimants also stated that such facilities were not at par with the benefits

available to permanent employees.

35.

Few claimants further deposed that they possessed educational qualifications ranging from middle

school and matriculation to graduation, post-graduation, diploma and technical qualifications. Some of them

stated that they had improved their educational qualifications during the course of their engagement with the

management. One of the claimants Sh. Pooran Singh (I.D. no. 21/2012) deposed that he had passed the

matriculation examination in the year 2018.

36.

The claimants also admitted that conciliation proceedings had been initiated before the labour

authorities at Dehradun through trade unions with regard to their grievances. However, they denied the that

they were not entitled to regularization or their continued engagement was only on account of the absence of

requisite qualifications. Theydeposed that despite serving the management for years, they had not been

granted the status of regular employees by the management.

37.

The management examined Shri Bane Singh Meena, Assistant Registrar, as MW-1, who tendered

his affidavit in evidence. Through his affidavit, MW-1 deposed that the erstwhile University of Roorkee had

startedmany temporary and time-bound projects, including construction, research, consultancy and plan grant

works, and that daily wage and contractual workers were engaged from time to time to meet the

requirements of such projects. According to him, the claimants were engaged on daily wage or contractual

basis as per temporary requirements and their contracts were extended from time to time depending upon

the need.

38.

MW-1 further deposed that in the year 1993, daily wage and contractual workers came up with a

demand for regularization of their services. The agitation by these daily wage workers led to building up a

volatile and surcharged atmosphere within the precincts of the University campus, as the Roorkee township

is under army control and a part of army cantonment, any further escalation in the existing volatile situation

could have resulted in a major law and order problem for the entire region. Therefore, discussions were held

between the management and the workers, concluding in Memoranda of Understandings (MoU) dated

22.11.1994 and 16.02.1996. He stated that in pursuance of the MoU, a pool of 361 daily wage and

contractual workers, known as the „Y-Pool‟, was prepared and these workers were permitted to participate in

selection processes conducted against available vacancies, subject to fulfilment of the prescribed eligibility

criteria. He further deposed that 211 out of the 361 Y-Pool workers were eventually selected and appointed

against regular posts through the prescribed recruitment process.

9370

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

39.

The witness further stated that the claimants were given opportunities to participate in the selection

processes conducted by the management from time to time. Although, some of the claimants applied for

various advertised posts, they could not be selected due to their position in the merit list, lack of required

qualifications or experience after assessment by the Selection Committees. The witness further deposed that

restrictions recruitment had been imposed by the Government of Uttar Pradesh in the year 1997 and similar

restrictions continued after the change of the University of Roorkee into IIT Roorkee under the control of the

Government of India. He stated that recruitment policy of IIT Roorkee went through changes after it was

converted into an IIT, and higher educational qualifications and revised recruitment pro4cess became

applicable for appointment on Group 'C' and Group 'D' posts. He further deposed that the Government of

India had adopted a policy of reducing the strength of non-teaching staffsin the IITs, and therefore, fresh

recruitments were reduced.

40.

The witness also stated that a proposal for absorption of the remaining Y-Pool workers was placed

before the Finance Committee and Board of Governors; however, the proposal was not approved due to

restrictions in recruitment processes and policies of the Government of India. He further deposed that the Y-

Pool workers were still granted various benefits, including EPF, gratuity, accommodation, revision of wages

and medical facilities available through the Institute Hospital, and were also granted age relaxation for

participation in future recruitment examinations.

41.

The management relied upon the following documents:

1) Ex. MW-1/1 – Copies of the correspondence related to the BhartiyaKisan Union and with the local

civil administration.

2) Ex. MW-1/2 – Copy of Memoranda of Understanding dated 22.11.1994 and 16.02.1996.

3) Ex. MW-1/3 – Copies of the Regulations governing the Selection Process of University of Roorkee

and copies of internal advertisements dated 24.10.1994, 21.11.1994, 13.06.1995, 26.07.1995,

27.08.1996 and 27.03.1997 issued for recruitment in the University of Roorkee.

4) Ex. MW-1/4 (Colly.) – Information relating to 211 persons recruited/selected out of 361 Y-Pool

workers.

5) Ex. MW-1/5 – Copies of advertisements against which the individual claimant had applied for

various posts but could not secure a place in the merit list.

6) Ex. MW-1/6 (Colly.) – Copies of Government Orders/letters dated 03.11.1997 and 02.12.1997

imposing a ban on recruitment of non-teaching posts in the University of Roorkee.

7) Ex. MW-1/7 (Colly.) – Copies of letters dated 08.05.1998 and 04.07.1998 issued by the

Government of Uttar Pradesh regarding relaxation of the ban on recruitment in the University of

Roorkee.

8) Ex. MW-1/8 (Colly.) – Copy of the Selection Process/Career Progression Scheme approved by the

Ministry of Human Resource Development, Government of India, showing the eligibility criteria for

recruitment in IIT Roorkee and the policy relating to recruitment restrictions.

9) Ex. MW-1/9 (Colly.) – Copy of BOG Resolution No. BG/07/2007 dated 01.03.2003 and

notification dated 22.04.2003 containing guidelines for recruitment of Group ‗B‘, ‗C‘ and ‗D‘ staff

in IIT Roorkee.

10) Ex. MW-1/10 – Copy of Memorandum of Understanding dated 27.07.2003 between the Ministry of

HRD and IIT Roorkee regarding reduction of academic and non-academic staff ratio, along with

copies of letters dated 08.05.2008 and 20.12.2010 issued by the Government of India in this regard.

11) Ex. MW-1/11 – Copy of proposal relating to the Special Voluntary Retirement Scheme (SVRS).

12) Ex. MW-1/12 – Copies of resolutions passed by the Board of Governors and Finance Committee

dated 27.01.2004 and 28.01.2004 respectively, whereby the proposal for absorption of Y and Z

category workers against vacant entry-level Group ‗C‘ and ‗D‘ posts was not accepted.

13) Ex. MW-1/13 – Copies of letters relating to grant of age relaxation to Y-Pool workers for

participation in recruitment processes in the erstwhile University of Roorkee and IIT Roorkee.

14) Ex. MW-1/14 – Copies of documents relating to grant of facilities such as EPF, gratuity,

accommodation, revision of wages and Institute Hospital facilities to the individual claimant,

including letter dated 16.07.2012 regarding revision of wages of Y-Pool workers.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9371

15) Ex. MW-1/15 (Colly.) – Documents showing the sanctioned strength of 1733 posts as on June, 2001

and documents relating to freezing of posts by the Board of Governors at the time of mapping after

conversion of the University into IIT Roorkee.

16) Ex. MW-1/16 (Colly.) – Copies of documents relating to syndicate-created posts, including

statements of posts, appointment letters of certain employees and decisions of the Board of

Governors regarding absorption/adjustment of incumbents working against such posts.

17) Ex. MW-1/17 – Copy of the verification form of the individual claimant and copies of the

complaint, reply and rejoinder filed before the Assistant Labour Commissioner, Dehradun.

42.

The witness was cross-examined at length, where he admitted that:

•

He admitted that all the claimants had been working since the period when the Institute

was known as the University of Roorkee.

•

He further admitted that pursuant to a Memorandum of Understanding (MOU) executed

between the management and the workers in the year 1994-95, the services of the workmen

did not suffer any break.

•

He also admitted that none of the claimants had been issued any appointment letter either

by the erstwhile University of Roorkee or by IIT Roorkee.

•

According to him, the claimants were initially engaged on muster roll basis.

•

He stated that the practice of engagement on muster roll continued till the execution of the

MOU.

•

He admitted that after the execution of the MOU, the practice of maintaining the workmen

on muster roll was discontinued and the workmen were deployed in different departments

of the University/Institute.

•

It was admitted by him that after the formation of IIT Roorkee, the claimants continued to

be paid from the normal grant of the Institute, though not from the salary head of the

budget.

•

He admitted that a pool of 361 workers, known as the Y-Pool, was created by the

management.

•

He further admitted that 211 workers out of the said Y-Pool were subsequently absorbed

against regular posts.

•

The witness also admitted that, apart from the MOU itself, no document had been placed

on record to establish that the person signing the MOU on behalf of the workers was duly

authorized to represent the present claimants.

•

He stated that he could not say, without verifying the records, whether certain contractual

workers had been made permanent with the approval of the Board of Governors and

whether service benefits had been given to them from the dates of their initial

appointments.

•

He admitted that some of the workers absorbed from the Y-Pool against regular posts

possessed educational qualifications only up to the 5th or 7th standard.

•

He admitted that he was not working in the University of Roorkee at the relevant time and

had joined IIT Roorkee only on 01.01.2019.

43.

I have heard the arguments advanced by the Ld. ARs for both parties and gone through records of

these cases. From the pleadings of the parties and evidence adduced on record, it is evident that the claimants

were engaged by the Erstwhile University of Roorkee, and were engaged as early as 1979 on their respective

posts. In the present cases, it is admitted that the claimants were engaged as daily wagers/ contractual

workers as admitted by the claimants in its pleadings and evidence adduced on record. The claimants were

working

continuously

for

different

periods

of

time,

some

dating

back

to

1979-80.

They are being paid minimum in the scale without promotion, and at rates lower than those of regular

employees of the management for want of regularization.

44.

The claimants did not file written submissions. However, it is clear from the pleadings, the evidence

led by them, and the judgments relied upon by them that their main contention is that they had been

continuously working with the respondent institution on different posts since the years 1980 to 2000 and

9372

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

have rendered long and uninterrupted service in various departments of the erstwhile University of Roorkee

and afterwards IIT Roorkee.

45.

It is further their case that some similarly situated employees and in some cases even junior to them,

were regularized, whereas their cases were ignored.

46.

The claimants have also argued that they have spent the prime years of their lives in the service of

the respondent institution with a legitimate expectation of regularization and that rejection of regularization

despite their long years of service is arbitrary and unjustified. Accordingly, they seek regularization on their

respective posts along with consequential benefits.

47.

In its written submissions, the management stated that it had engaged the claimants as casual daily

wage/contract workers on muster roll basis to meet temporary and project-based requirements. It was

submitted that the claimants were never appointed against sanctioned regular posts and were not recruited

through any prescribed selection process.

48.

The management further submitted that after the agitation by daily wage and contractual workers,

Memoranda of Understanding dated 22.11.1994 and 16.02.1996 were executed, wherea pool of 361 workers,

known as the Y-Pool, was created. It was submitted that the said Memoranda did not planto automatically

regularize the claimants and was only meant for consideration of eligible Y-Pool workers for appointment

against regular vacancies in accordance with the applicable recruitment rules and selection procedures.

49.

It was further submitted that various recruitment processes were conducted by the erstwhile

University of Roorkee and that 211 workers from the Y-Pool were appointed against regular posts after being

found eligible by the Selection Committees. According to the management, no scheme for regularization was

ever framed and appointments against regular posts were made only through the prescribed recruitment

process.

50.

The management also contended that pursuant to issuance of blanket prohibition on all non-teaching

appointments by the Government of Uttar Pradesh and subsequently by the Government of India, fresh

recruitments were severely restricted. -

51.

The management further submitted that no vacancy existed in the C-MTS category and

appointments to the few vacancies arising in other cadres could be made only in accordance with the

applicable recruitment rules. It was also contended that several opportunities were given to the Y-Pool

workers to participate in recruitment processes, but the claimants were unable to secure appointment through

the prescribed selection procedure on account of their position in the merit list, lack of required qualifications

or experience

52.

The management lastly contended that only continuation in service for a long period does not give

any automatic right to regularization and regularization cannot be claimed as a mode of recruitment. It was

however submitted that the management had granted various service benefits to Y-Pool workers, including

provident fund, gratuity, medical facilities, accommodation, annual increments, leave benefits and age

relaxation in recruitment processes.

53.

The management has heavily placed reliance upon the judgment of Hon‘ble Supreme Court of India

dated 10.04.2006 in State of Karnataka vs. Uma Devi and Ors., Civil Appeal Nos. 3595-3612 of 1999,

wherein it was held that:

Thus, it is clear that adherence to the rule of equality in public employment is a basic

feature of our Constitution and since the rule of law is the core of our Constitution, a

Court would certainly be disabled from passing an order upholding a violation of Article

14 or in ordering the overlooking of the need to comply with the requirements of Article

14 read with Article 16 of the Constitution. Therefore, consistent with the scheme for

public employment, this Court while laying down the law, has necessarily to hold that

unless the appointment is in terms of the relevant rules and after a proper competition

among qualified persons, the same would not confer any right on the appointee. If it is a

contractual appointment, the appointment comes to an end at the end of the contract, if it

were an engagement or appointment on daily wages or casual basis, the same would

come to an end when it is discontinued. Similarly, a temporary employee could not claim

to be made permanent on the expiry of his term of appointment. It has also to be clarified

that merely because a temporary employee or a casual wage worker is continued for a

time beyond the term of his appointment, he would not be entitled to be absorbed in

regular service or made permanent, merely on the strength of such continuance, if the

original appointment was not made by following a due process of selection as envisaged

by the relevant rules. It is not open to the court to prevent regular recruitment at the

instance of temporary employees whose period of employment has come to an end or of

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9373

ad hoc employees who by the very nature of their appointment, do not acquire any right.

High Courts acting under Article 226 of the Constitution of India, should not ordinarily

issue directions for absorption, regularization, or permanent continuance unless the

recruitment itself was made regularly and in terms of the constitutional scheme. Merely

because, an employee had continued under cover of an order of Court, which we have

described as 'litigious employment' in the earlier part of the judgment, he would not be

entitled to any right to be absorbed or made permanent in the service. In fact, in such

cases, the High Court may not be justified in issuing interim directions, since, after all, if

ultimately the employee approaching it is found entitled to relief, it may be possible for it

to mould the relief in such a manner that ultimately no prejudice will be caused to him,

whereas an interim direction to continue his employment would hold up the regular

procedure for selection or impose on the State the burden of paying an employee who is

really not required. The courts must be careful in ensuring that they do not interfere

unduly with the economic arrangement of its affairs by the State or its instrumentalities or

lend themselves the instruments to facilitate the bypassing of the constitutional and

statutory mandates.

41. It is argued that in a country like India where there is so much poverty and

unemployment and there is no equality of bargaining power, the action of the State in not

making the employees permanent, would be violative of Article 21 of the Constitution. But

the very argument indicates that there are so many waiting for employment and an equal

opportunity for competing for employment and it is in that context that the Constitution as

one of its basic features, has included Articles 14, 16 and 309 so as to ensure that public

employment is given only in a fair and equitable manner by giving all those who are

qualified, an opportunity to seek employment. In the guise of upholding rights under

Article 21 of the Constitution of India, a set of persons cannot be preferred over a vast

majority of people waiting for an opportunity to compete for State employment. The

acceptance of the argument on behalf of the respondents would really negate the rights of

the others conferred by Article 21 of the Constitution, assuming that we are in a position

to hold that the right to employment is also a right coming within the purview of Article

21 of the Constitution. The argument that Article 23 of the Constitution is breached

because the employment on daily wages amounts to forced labour, cannot be accepted.

After all, the employees accepted the employment at their own volition and with eyes open

as to the nature of their employment. The Governments also revised the minimum wages

payable from time to time in the light of all relevant circumstances. It also appears to us

that importing of these theories to defeat the basic requirement of public employment

would defeat the constitutional scheme and the constitutional goal of equality.

54.

The management further relied upon the judgment of Hari Nandan Prasad & Anr. Vs. Employer

I/R to Management of Food Corporation of India &Anr. (2014) 7 SCC 190, where it was held:

On harmonious reading of the two judgments discussed in detail above, we are of the

opinion that when there are posts available, in the absence of any unfair labour practice the

Labour Court would not give direction for regularization only because a worker has

continued as daily wage worker/adhoc/temporary worker for number of years. Further, if

there are no posts available, such a direction for regularization would be impermissible. In

the aforesaid circumstances giving of direction to regularize such a person, only on the

basis of number of years put in by such a worker as daily wager etc. may amount to

backdoor entry into the service which is an anathema to Art.14 of the Constitution. Further,

such a direction would not be given when the concerned worker does not meet the eligibility

requirement of the post in question as per the Recruitment Rules. However, wherever it is

found that similarly situated workmen are regularized by the employer itself under some

scheme or otherwise and the workmen in question who haveapproached Industrial/Labour

Court are at par with them, direction of regularization in such cases may be legally

justified, otherwise, non-regularization of the left over workers itself would amount to

invidious discrimination qua them in such cases and would be violative of Art.14 of the

Constitution. Thus, the Industrial adjudicator would be achieving the equality by upholding

Art. 14, rather than violating this constitutional provision.

55.

Certain guidelines have been enunciated by the Hon‘ble Apex court in Jaggo vs. Union of India,

2024 SCC OnLine SC 3826 and Sh. Vinod Kumar &Ors. Vs. Union of India (arising out of SLP (C)

Nos.22241-42 of 2016). The facts of the cases in hand squarely covers the above mentioned judgments. In

the above said judgments, long, continuous and unblemished services of employees who were directly

recruited by the Government, but the management adopted unfair labour practice by employing them for a

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[PART II—SEC. 3(ii)]

long period of time.In Vinod Kumar &Ors. v. Union of India, it was held that the application of judgment in

Uma Devi does not fit squarely with the facts at hand, given the specific circumstances under which the

appellants were employed and have continued their services.

56.

In the said judgment, the Apex court held that long, continuous, and unblemished service cannot be

disregarded merely because employees were initially appointed on a contractual or part-time basis, especially

where their work is perennial, integral, and indispensable to the organization. The Court rejected technical

objections relating to qualifications or procedural lapses, and held that outsourcing of identical work further

demonstrates its necessity. It clarified that Uma Devi was not intended to deny regularisation to long-serving

employees performing essential functions, but to prevent illegal appointments, and cautioned against its

misuse to defeat legitimate claims. The relevant portion in Jaggo vs. Union of India, are reproduced herein

below:-

“17. As for the argument relating to educational qualifications, we find it

untenable in the present context. The nature of duties the appellants performed—

cleaning, sweeping, dusting, and gardening—does not inherently mandate formal

educational prerequisites. It would be unjust to rely on educational criteria that

were never central to their engagement or the performance of their duties for

decades. Moreover, the respondents themselves have, by their conduct, shown that

such criteria were not strictly enforced in other cases of regularization. The

appellants' long-standing satisfactory performance itself attests to their capability

to discharge these functions, making rigid insistence on formal educational

requirements an unreasonable hurdle.

****

19. It is evident from the foregoing that the appellants' roles were not only

essential but also indistinguishable from those of regular employees. Their

sustained contributions over extended periods, coupled with absence of any

adverse record, warrant equitable treatment and regularization of their services.

Denial of this benefit, followed by their arbitrary termination, amounts to manifest

injustice and must be rectified.

20. It is well established that the decision in Uma Devi (supra) does not intend to

penalize employees who have rendered long years of service fulfilling ongoing and

necessary functions of the State or its instrumentalities. The said judgment sought

to prevent backdoor entries and illegal appointments that circumvent

constitutional requirements. However, where appointments were not illegal but

possibly “irregular,” and where employees had served continuously against the

backdrop of sanctioned functions for a considerable period, the need for a fair and

humane resolution becomes paramount. Prolonged, continuous, and unblemished

service performing tasks inherently required on a regular basis can, over the time,

transform what was initially ad-hoc or temporary into a scenario demanding fair

regularization. In a recent judgment of this Court in Vinod Kumar v. Union of

India5, it was held that held that procedural formalities cannot be used to deny

regularization of service to an employee whose appointment was termed

“temporary” but has performed the same duties as performed by the regular

employee over a considerable period in the capacity of the regular employee. The

relevant paras of this judgment have been reproduced below:

“6. The application of the judgment in Uma Devi (supra) by the

High Court does not fit squarely with the facts at hand, given the

specific circumstances under which the appellants were employed

and have continued their service. The reliance on procedural

formalities at the outset cannot be used to perpetually deny

substantive rights that have accrued over a considerable period

through continuous service. Their promotion was based on a specific

notification for vacancies and a subsequent circular, followed by a

selection process involving written tests and interviews, which

distinguishes their case from the appointments through back door

entry as discussed in the case of Uma Devi (supra).

7. The judgment in the case Uma Devi (supra) also distinguished

between “irregular” and “illegal” appointments underscoring the

importance of considering certain appointments even if were not

made strictly in accordance with the prescribed Rules and

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9375

Procedure, cannot be said to have been made illegally if they had

followed the procedures of regular appointments such as conduct of

written examinations or interviews as in the present case…”

21. The High Court placed undue emphasis on the initial label of the appellants'

engagements and the outsourcing decision taken after their dismissal.Courts must

look beyond the surface labels and consider the realities of employment :

continuous, long-term service, indispensable duties, and absence of any mala

fide or illegalities in their appointments. In that light, refusing regularization

simply because their original terms did not explicitly state so, or because an

outsourcing policy was belatedly introduced, would be contrary to principles of

fairness and equity.

22. The pervasive misuse of temporary employment contracts, as exemplified in

this case, reflects a broader systemic issue that adversely affects workers' rights

and job security. In the private sector, the rise of the gig economy has led to an

increase in precarious employment arrangements, often characterized by lack of

benefits, job security, and fair treatment. Such practices have been criticized for

exploiting workers and undermining labour standards. Government institutions,

entrusted with upholding the principles of fairness and justice, bear an even

greater responsibility to avoid such exploitative employment practices. When

public sector entities engage in misuse of temporary contracts, it not only mirrors

the detrimental trends observed in the gig economy but also sets a concerning

precedent that can erode public trust in governmental operations.

****

24. The landmark judgment of the United State in the case of Vizcaino v. Microsoft

Corporation7 serves as a pertinent example from the private sector, illustrating the

consequences of misclassifying employees to circumvent providing benefits. In this

case, Microsoft classified certain workers as independent contractors, thereby

denying them employee benefits. The U.S. Court of Appeals for the Ninth Circuit

determined that these workers were, in fact, common-law employees and were

entitled to the same benefits as regular employees. The Court noted that large

Corporations have increasingly adopted the practice of hiring temporary

employees or independent contractors as a means of avoiding payment of

employee benefits, thereby increasing their profits. This judgment underscores the

principle that the nature of the work performed, rather than the label assigned to

the worker, should determine employment status and the corresponding rights and

benefits. It highlights the judiciary's role in rectifying such misclassifications and

ensuring that workers receive fair treatment.

25. It is a disconcerting reality that temporary employees, particularly in

government institutions, often face multifaceted forms of exploitation. While the

foundational purpose of temporary contracts may have been to address short-term

or seasonal needs, they have increasingly become a mechanism to evade long-term

obligations owed to employees. These practices manifest in several ways:

• Misuse of “Temporary” Labels: Employees engaged for work that is essential,

recurring, and integral to the functioning of an institution are often labeled as

“temporary” or “contractual,” even when their roles mirror those of regular

employees. Such misclassification deprives workers of the dignity, security, and

benefits that regular employees are entitled to, despite performing identical tasks.

• Arbitrary Termination: Temporary employees are frequently dismissed without

cause or notice, as seen in the present case. This practice undermines the

principles of natural justice and subjects workers to a state of constant insecurity,

regardless of the quality or duration of their service.

• Lack of Career Progression: Temporary employees often find themselves

excluded from opportunities for skill development, promotions, or incremental pay

raises. They remain stagnant in their roles, creating a systemic disparity between

them and their regular counterparts, despite their contributions being equally

significant.

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[PART II—SEC. 3(ii)]

• Using Outsourcing as a Shield: Institutions increasingly resort to outsourcing

roles performed by temporary employees, effectively replacing one set of exploited

workers with another. This practice not only perpetuates exploitation but also

demonstrates a deliberate effort to bypass the obligation to offer regular

employment.

• Denial of Basic Rights and Benefits: Temporary employees are often denied

fundamental benefits such as pension, provident fund, health insurance, and paid

leave, even when their tenure spans decades. This lack of social security subjects

them and their families to undue hardship, especially in cases of illness,

retirement, or unforeseen circumstances.

26. While the judgment in Uma Devi (supra) sought to curtail the practice of

backdoor entries and ensure appointments adhered to constitutional principles, it

is regrettable that its principles are often misinterpreted or misapplied to deny

legitimate claims of long-serving employees. This judgment aimed to distinguish

between “illegal” and “irregular” appointments. It categorically held that

employees in irregular appointments, who were engaged in duly sanctioned posts

and had served continuously for more than ten years, should be considered for

regularization as a one-time measure. However, the laudable intent of the

judgment is being subverted when institutions rely on its dicta to indiscriminately

reject the claims of employees, even in cases where their appointments are not

illegal, but merely lack adherence to procedural formalities. Government

departments often cite the judgment in Uma Devi (supra) to argue that no vested

right to regularization exists for temporary employees, overlooking the

judgment's explicit acknowledgment of cases where regularization is

appropriate. This selective application distorts the judgment's spirit and purpose,

effectively weaponizing it against employees who have rendered indispensable

services over decades.

27. In light of these considerations, in our opinion, it is imperative for government

departments to lead by example in providing fair and stable employment. Engaging

workers on a temporary basis for extended periods, especially when their roles are

integral to the organization's functioning, not only contravenes international

labour standards but also exposes the organization to legal challenges and

undermines employee morale. By ensuring fair employment practices, government

institutions can reduce the burden of unnecessary litigation, promote job security,

and uphold the principles of justice and fairness that they are meant to embody.

This approach aligns with international standards and sets a positive precedent for

the private sector to follow, thereby contributing to the overall betterment of

labour practices in the country.”

57.

The supreme court reiterating the principles laid down in Jaggo (supra) again in the case of Shripal

v. Nagar Nigam, Ghaziabad, 2025 SCC OnLine SC 221, held that that employees who have worked

continuously and without complaint for long periods in roles that are perennial and essential cannot be

arbitrarily terminated or denied regularisation, as such action would be unconstitutional. In such

circumstances, the employer cannot rely on technical objections such as absence of a formal selection

process, lack of sanctioned posts, or recruitment bans. It further clarifies that Uma Devi does not bar

regularisation in these cases, particularly where long-standing service reflects a genuine and ongoing need

for the work performed. The relevant portion is reproduced herein below: -

“13. By requiring the same tasks (planting, pruning, general upkeep) from the

Appellant Workmen as from regular Gardeners but still compensating them

inadequately and inconsistently the Respondent Employer has effectively engaged

in an unfair labour practice. The principle of “equal pay for equal work,”

repeatedly emphasized by this Court, cannot be casually disregarded when

workers have served for extended periods in roles resembling those of permanent

employees. Long-standing assignments under the Employer's direct supervision

belie any notion that these were mere short-term casual engagements.

14. The Respondent Employer places reliance on Umadevi to contend that daily-

wage or temporary employees cannot claim permanent absorption in the absence

of statutory rules providing such absorption. However, as frequently reiterated,

Uma Devi itself distinguishes between appointments that are “illegal” and those

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9377

that are “irregular,” the latter being eligible for regularization if they meet certain

conditions. More importantly, Uma Devi cannot serve as a shield to justify

exploitative engagements persisting for years without the Employer undertaking

legitimate recruitment. Given the record which shows no true contractor-based

arrangement and a consistent need for permanent horticultural staff the alleged

asserted ban on fresh recruitment, though real, cannot justify indefinite daily-wage

status or continued unfair practices.

15 It is manifest that the Appellant Workmen continuously rendered their services

over several years, sometimes spanning more than a decade. Even if certain muster

rolls were not produced in full, the Employer's failure to furnish such records—

despite directions to do so—allows an adverse inference under well- established

labour jurisprudence. Indian labour law strongly disfavors perpetual daily-wage

or contractual engagements in circumstances where the work is permanent in

nature. Morally and legally, workers who fulfil ongoing municipal requirements

year after year cannot be dismissed summarily as dispensable, particularly in the

absence of a genuine contractor agreement….”

58.

So far so the reliance placed by the management in HariNandanParsad (Supra) is concerned, that

stands nowhere. In the present matters, the posts on which the claimants had been working continuously for

decades are admittedly perennial in nature. The management not only absorbed 211 out of 361 Y-pool

workmen against regular posts at different points of time by conducting the recruitment processes,and left out

the workmen herein for not succeeding in the recruitment test or otherwise not fulfilling the criteria, but also

continued to avail their services, meaning thereby that the posts on which they are working are essential in

nature.

59.

Moreover, it is admitted by the management that in 2004, an agenda item was put before the Board

of Governors (BOG) and the Finance Committee for absorption of the last batch of ‗Y-pool‘ employees.

However, this proposal was rejected by both statutory bodies on grounds of policy limitations and reiterated

the central government's guidance on sticking to the fixed faculty-staff ratio. However, the claimants‘

association continued to be contractual, casual, and need-based basis.

60.

Therefore, in the guise of policy limitations, the workmen cannot be left in limbo because it would

amount to discrimination qua them and would be violative of article 14 of the constitution, particularly when

initially all 361 ‗Y-pool‘ workmen were initially engaged directly without undergoing any recruitment process

and most of them were subsequently absorbed by the management.

61.

Long experience of work and long association with the department would naturally result in

acquisition of expertise in the posts on which the workmen are working. The posts held by the claimants are

those of Helper, Peon, Beldar, Chowkidar, Mason, Telephone Operator, Pump Operator, Technical Assistant,

Lab. Technician etc.Their experience of working on these posts for decades itself is sufficient to meet the

standard of the post on which the claimants are working.

Relief

In view of the above discussion, it is held that the action of the management in not regularizing the

services of the claimants is unjustified. Accordingly, the claimants who continue to be in service are held

entitled to regularization on their respective posts. Now the question arises for consideration is as to from

which date the claimants are entitled to be given benefits of regularization. The claimants have made prayer

in their claim statements that they be regularized from the dates of their initial appointment by the

management on daily wage/contract basis. However, the same cannot be accepted. If their pleas are accepted,

the management would not be in a position to engage workers on a daily-wage or contractual basis to meet

contingency of work. At least some length of service is required to be rendered by the workmen before they

seek regularization.

In the claims in hand, it would be proper if the claimants are ordered to be regularized with effect

from the date of reference made by the appropriate government, considering that they have rendered long

years of service who spanned for decades and their continuance of service even as of today in some of the

cases.

In view of the above, the claimants are entitled to be regularized with effect from the date of reference

of the dispute, along with all consequential service benefits.

The claimants who retired during the pendency of the proceedings shall also be entitled to the

consequential monetary and retiral benefits arising out of the regularization with effect from the date of

reference.

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[PART II—SEC. 3(ii)]

In respect of the claimants who expired during the pendency of the proceedings, the consequential

monetary benefits arising from this Award shall be computed with effect from the date of reference and

released to their legal heirs in accordance with law.

The management is directed to implement the Award within two months from the date of its

publication.A copy of this award be sent to the appropriate government for notification under section 17 of

the I.D Act. A copy of this award is also placed in each of the connected files. The file is consigned to record

room.

Dated 11.06.2026

ATUL KUMAR GARG , Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1760.— औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

नेशनल थमसल पावर कॉपोरेशन; मेससस यूरिगलिी पावर िेक गलगमिेड के प्रबंधतंत्र के संबद्ध गनयोजकों और एनिीपीसी ठेका

श्रगमक संघ के बीच अनुबंध में गनर्ददष्ट औद्योगगक गववाद केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-II, नई

ददल्ली, पंचाि (ररफरेन्द्स न.- 146/2015) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है l

[la

एल- 42025/07/2026/228-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1760.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 146/2015) of the Central Government Industrial

Tribunal cum Labour Court-II, New Delhi as shown in the Annexure, in the Industrial dispute between the

employers in relation to National Thermal Power Corporation; M/s Utility Power Tech Ltd. and NTPC Theka

Shramik Sangh.

[No. L- 42025/07/2026/228-IR(DU)]

SALONI, Deputy Director

BEFORE CENTRAL GOVERNMENT INDSUTRIAL TRIBUNAL – CUM – LABOUR

COURT-II, NEW DELHI

I.D. NO. 146/2015

The General Secretary

NTPC Theka Shramik Sangh,

Village- Salarpur Kalan, P.O- Vidyut Nagar, Dadri,

Gautam Buddh Nagar, UP-201008.

VERSUS

1. The General Manager,

National Thermal Power Corporation,

Vidyut Nagar, Dadri,

Gautam Buddh Nagar, UP-201008.

2. M/s Utility Power Tech Ltd.

National Capital Power Project Premises,

P.O. Vidyut Nagar, District Gautam Budh Nagar,

Dadri (U.P.)-201008.

Also at:

BSES Tower, 5th Floor, A2,

Sector-24, Noida (U.P.)-201301.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9379

AWARD

04.06.2026

In exercise of powers conferred under clause (d) of Sub-section (1) and Sub-section (2A) of Section 10 of

the Industrial Disputes Act, 1947 (14 of 1947), the Government of India through the Ministry of Labour and

Employment, vide its Order No. L-42011/113/2015-IR (DU) dated 17.08.2015 has been pleased to refer the

following dispute between the employer, that is the Management of National Thermal Power Corporation and

their workman for adjudication by this Tribunal, terms of which are as under:

“Whether the given 9 no. of workmen hold valid grounds to be reinstated in the

service of NTPC/M/s Utility Powertech Limited and be regularised under NTPC,

Dadri looking into the status of the M/s Utility Powertech Limited as a contractor of

M/s NTPC Limited? If so, what requisites should be looked into for their

regularisation?”

Upon receiving the reference workmen had filed their claim statement stating they are members of

their Trade Union i.e. NTPC Theka Shramik Sangh, situated at Village & Post Office Salarpur Kalan,

District Gautam Budh Nagar-201008 since long. They have been working with management no. 1 since

01.01.2010 continuously without any break under its direct control and supervision. They have been working

as electric/data entry operator/technician with the management no. 1 for a long period of time. Their service

records were neat and clean and there was no complaint of any kind on the part of the claimants. The

contractors of management no. 1 are appointed on the basis of license of surveyors. Management no. 1 is

large entity and primarily engaged into the business of generating electricity and allied businesses i.e.

maintaining power houses, power generating plant and factory, productions, transmission and distributions of

electricity on PAN India basis. Management no. 1 has many factories, offices, godowns, power lines, boilers,

open spaces, offices etc. It is also an industrial establishment as well as factory under the applicable

provisions of law. However, it is not complying with mandatory pre-condition as stipulated under ID Act,

1947, CLRA Act, ESI, EPF, Payment of bonus Act, Shops and Establishment Act, Industrial Employment

(standing order Act, 1946), Factories Act etc. They had been continuously working with the management for

several years on duties of a regular, perennial, and permanent nature. They were engaged through contractors

who were allegedly not duly licensed and the arrangement between the management and the contractors was

challenged as a sham and camouflage intended to deny statutory and service benefits to the claimant and

similarly situated workers. They further submitted that at the initial stage of their employment, the

management got some blank papers, proformas, full and final receipts and blank appointment letter signed

from the claimant but did not provide the copies of the blank signed papers to the claimant. They also stated

that despite performing duties similar to those performed by regular employees, they were denied equal

service conditions, regularization, and wages equivalent to those paid to regular employees. They repeatedly

raised grievances regarding unfair labour practices, non-regularisation, and denial of equal pay for equal

work. However, their representations were not adequately addressed by the management. They were forced

to work beyond 17-18 hours in a day by the management and they were also not provided the safety

equipment and for the said reason a lot of workman was met with an accident and lost their life in multiple

accident. Due to those accidents, many of the workmen have died or become permanently handicapped. They

had been demanding these legal facilities orally from the management on account of the demand, the

management kept rancor against the claimants and wanted to terminate the service of the claimants illegally

and unjustifiably for demanding these legal benefits. Thereafter, their services have been illegally terminated

on 31.12.2014. Claimants had worked for more than 240 days in every calendar year with the management

no. 1 without any break since beginning i.e. date of his initial appointment till the date of his termination of

services. They had approached their trade union and submitted their demands. Thereafter, the demands were

made to the management for redressal of long pending grievances. However, the same were not met by the

management and deemed to have been refused. They have gone to the conciliation, but, it was resulted into

failure. Hence, they filed their present claim with the prayer to direct the management to settle all the claims

of the claimants; reinstate their respective services with full back wages; give the benefits of ―equal work for

equal pay‖; and regularize their services with management no. 1 from the date of their respective initial

appointments.

Management no. 1 has filed its written statement. He had stated that there is no relationship of

employer and employee or of any other kind between the NTPC Ltd. (Management no. 1) and the claimants.

He submitted that NTPC Ltd. is a Government of India enterprise and functioning under the administrative

control of Ministry of Power. They have entered into an agreement with M/s Utility Powertech Ltd. i.e.

management no. 2 and awarded contract for identified works of the various power stations, projects and

offices for consideration. It is submitted by him that management no. 2 i.e. M/s Utility Powertech Ltd. is the

principle employer of their contract workers. He submitted that claim of the claimants is liable to be

dismissed.

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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Management no. 2 has filed its written statement stating that answering respondent is a joint venture

of NTPC Ltd. and Reliance Infrastructure Ltd. (erstwhile Reliance Energy Ltd.). It is company registered

under the Companies Act, 1956, and thus is a separate legal entity with its Board of Directors. They had got

work from NTPC Ltd. vide letter dated 20.02.2009 and purchase order no. 4600002368-017-1011. The

duration of the service period of the said work order was from 10.11.2008 to 09.02.2009. They submitted

that workmen were never their employees or hired directly by them to get the said work done. To get the said

work done, services of the contractor M/s Raj Singh Rana & Co., Village Rasoolpur, Dasna, NTPC,

Vidyut Nagar, G.B. Nagar, UP was availed of M/s Utility Powertech Ltd. (management no. 2). They

submitted that Sh. Naresh Bhardwaj, Sh.Vijay Pal, Sh. Avnish Pratap, Sh. Jitender were employed by the

contractor M/s Raj Singh Rana & Co. initially and Sh. Birpal and Sh. Ramesh were later hired in addition to

the original four by the contractor to complete the said work order. All the payments as per the contract and

statutory provisions were made to the workmen by the said contractor, the details of which were supplied to

management no. 2 by the contractor, which bear their signature. They submitted that payments were made to

the contractor i.e. M/s Raj Singh Rana & Co. by UPL and the said contractor used to make the payments to

the workman engaged by it. M/s Utility Powertech Ltd. (management no. 2) has no role to play except to

ensure that the statutory payments are made to the said workmen. Hence, he submitted that claim of the

claimant s is liable to be dismissed on this ground.

Rejoinder has been filed by the claimants denying the averments made in the written statements of

the management no. 1 & 2 and affirmed the facts mentioned in his claim statement.

After completion of the pleadings, vide order dated 12.10.2023, following issues have been framed

i.e.-

1. Whether the workman is entitled to relief claimed as per reference? (OPW).

2. If the answer of the issue no. 1 is affirmative, then what relief the claimant is entitled to and from

which date?

Now, the matter is listed for workman evidence. Workmen are required to file their affidavits of

evidence, but, neither the workmen nor their AR has been appearing from several dates to substantiate their

claim.

In these circumstances, when the claimants are not interested in pursuing their case, this tribunal has

no other option but to dismiss the claim. Hence, their claim stands dismissed. Award is passed accordingly.

A copy of this award is sent to the appropriate government for notification as required under section 17 of

the ID act 1947. File is consigned to record room.

Date: 04.06.2026

ATUL KUMAR GARG, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1761.—औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

जवाहरलाल नेहरू गवश्वगवद्यालय; जी4एस गसक्योर सॉल्यूशंस (इंगडया) प्राइवेि गलगमिेड के प्रबंधतंत्र के संबद्ध गनयोजकों

और श्री ददनेश कुमार के बीच अनुबंध में गनर्ददष्ट औद्योगगक गववाद केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम

न्द्यायालय-II, नई ददल्ली, पंचाि (ररफरेन्द्स न.- 262/2022) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है l

[la

एल- 42025/07/2026/229-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1761.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 262/2022) of the Central Government Industrial

Tribunal cum Labour Court-II, New Delhi as shown in the Annexure, in the Industrial dispute between the

employers in relation to Jawaharlal Nehru University; G4S Secure Solutions (India) Pvt. Ltd. and Sh. Dinesh

Kumar.

[No. L- 42025/07/2026/229-IR(DU)]

SALONI, Deputy Director

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9381

BEFORE CENTRAL GOVERNMENT INDSUTRIAL TRIBUNAL – CUM – LABOUR COURT-II,

NEW DELHI

I.D. NO. 262/2022

Sh. Dinesh Kumar, S/o Sh. Meghraj Singh Dagur,

R/o- Chinayata, Karauli, Rajasthan-322236.

VERSUS

1. The Vice Chancellor,

Jawaharlal Nehru University,

New Mehrauli Road, New Delhi-110067.

2. The Chairman/Director/A.R.,

G4S Secure Solutions (India) Pvt. Ltd.,

Reg. Office: C-16, C-Block, Community Centre,

Janakpuri, New Delhi-110058.

AWARD

01.06.2026

This is an application U/S 2A of the Industrial Disputes Act (hereinafter referred to as ―the Act‖).

Claimant had stated in his claim statement that he was employed as Guard on dated 07.08.2015 by the management

no. 1 through contractor i.e. management no. 2 and his last drawn salary was Rs. 14,100/- p.m. He had been

performing his duty with utmost care and diligence and there has never been any complaint against him. Management

no. 1 released for wages to management no. 2 each and every months amount Rs. 30,000/- per month as per Central

Government Minimum Wages Act. He has been suffering mentally, physically and economically due to the non

complete payment of salary released by the managements. He had not been provided legal facilities i.e. earns leave,

casual leave, attendance register, overtime, leave book, bonus etc. when he demanded the aforesaid legal facilities,

without any rhyme and reason his services have been terminated which is a violation of section 25-F of the I.D. Act.

He approached many times to the management‘s office for his dues, but, management neither paid the payment of

workman dues nor taken him back on duty. He had gone to the conciliation which was resulted into failure. Hence, he

filed the claim with the prayer that he be reinstated with full back wages.

Management no. 1 has filed its written statement denying the averment made in her claim statement. He

submitted that the workman was employed by the management no. 2, who was providing the security services in

terms of the contract entered into between the managements and hence there is no employer-employee relationship

between the management and the workman. He had stated that claim filed by the claimant is not maintainable and is

liable to be dismissed.

Management no. 2 has already been proceeded ex-parte vide order dated 13.03.2023.

Rejoinder has been filed by the claimant denying the averment made in the WS of management no. 1 and

affirmed the fact mentioned in his claim statement.

After completion of the pleadings, vide order dated 19.03.2024, following issues have been framed i.e.

1. Whether there exists any employer or employee relationship between M-1 and workman.

2. Whether the service of the workman stand terminated illegally in violation of labour law.

3. Relief, if any.

Now, the matter is listed for workman evidence. Workman has not been appearing since long to substantiate

his claim inspite of providing a number of opportunities.

In these circumstances, when the claimant has not been appearing since long to substantiate his claim, it

appears that he is not interested in pursuing his case. His claim stands dismissed. Award is passed accordingly. A copy

9382

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

of this award is sent to the appropriate government for notification as required under section 17 of the ID act 1947.

File is consigned to record room.

Date: 01.06.2026

ATUL KUMAR GARG, Presiding Officer.

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1762.—औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

चीफ़ पोस्ि मास्िर जनरल, ददल्ली; पोस्ि मास्िर, गिलगमल पोस्ि ऑदफ़स के प्रबंधतंत्र के संबद्ध गनयोजकों और श्री कमल

कुमार के बीच अनुबंध में गनर्ददष्ट औद्योगगक गववाद केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-II, नई

ददल्ली, पंचाि (ररफरेन्द्स न.- 207/2018) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है l

[la

एल- 42025/07/2026/230-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1762.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 207/2018) of the Central Government Industrial

Tribunal cum Labour Court-II, New Delhi as shown in the Annexure, in the Industrial dispute between the

employers in relation to The Chief Post Master General Delhi; Post Master, Jhilmil Post Office and

Sh. Kamal Kumar.

[No. L- 42025/07/2026/230-IR(DU)]

SALONI, Deputy Director

BEFORE CENTRAL GOVERNMENT INDSUTRIAL TRIBUNAL – CUM – LABOUR COURT-II,

NEW DELHI

I.D. NO. 207/2018

Sh. Kamal Kumar, S/o Sh. Uday Singh,

Through- Progressive National Labour Union,

205, Pratap Khand, Vishwakarma Nagar,

Delhi-110095.

VERSUS

1. The Chief Post Master General Delhi,

Meghdoot Bhawan, New Delhi-110001.

2. Post Master, Jhilmil Post Office,

Jhilmil Industrial Area, Delhi-110095.

Counsels:

For Applicant/ Claimant:

None

For Management/ Respondent:

Ms. Seema Grover, Ld. AR

AWARD

12.06.2026

1.

Workman has triggered the process for filing the claim petition after obtaining the failure report as required

under section 2A of the Industrial Disputes Act, 1947 (hereinafter referred to as ―the Act‖). In his claim

petition the workman has stated that he had been working with the respondent at the post of ―Postman‖

w.e.f. 01.04.2014 at the last drawn salary of Rs. 15,000/- per month. He did his job sincerely and honestly

and had not given any complaint to the respondent. Respondent without any rhyme and reason has

terminated his services on 26.04.2018. Hence, he made prayer that he be reinstated in services with full back

wages because he is not able to obtain the job.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9383

2.

Respondent herein has filed its written statement countering the submission of the claimant. He has stated

that the claimant got the employment with the respondent through agency/contractor as outsourced delivery

personnel for delivery of letters/dak. After expiry of the contract with the agency i.e. M/s G.A. Digital Web

Word Pvt. Ltd. on 31.12.2016, the delivery work was managed by hiring the labour on daily basis as per

the work load and requirement by the department till regular appointments were made and paid wages as per

the minimum wages prescribed by Delhi Government from time to time.

3.

Management had taken the preliminary objections stating that claim of the claimant is not maintainable as

the very essence for registering the claim of the claimant under Industrial Dispute Act, 1947 is lacking. The

―Industrial Dispute‖ is defined by Section 2(k) of the Industrial Disputes Act, 1947 as, any dispute or

difference between employers and employers, or between employers and workmen, or between workman

and workman, which is connected with the employment or non-employment or terms of employment or with

the conditions of labour, of any person. The services of the claimant was no more required in view of the

recruitment of about 740 regular Postman/Mail guard through open market competitive exam conducted as

per relevant recruitment rules; claimant has not made the authorities of the said outsourced agency M/s G.A

Digital Web World Pvt. Ltd. as party in the present claim for the proper and fair disposal of the case;

instant claim is bad in law, without application of mind and in a stereotype manner hence liable to be

dismissed; instant claim is not maintainable in view of the judgments passed by the Hon‘ble Supreme Court

in the case of State of Karnataka vs. Uma Devi & Ors. [2006 (4) SCC 1], as the applicant has no cause of

action for filing the present claim. Infact, management has denied the master and servant relationship. He

submitted that after expiry of the contract with the agencies, claimant himself offered to be engaged on daily

wage basis as and when required. Hence, the question of his dis-engagement does not arise. On merit, he has

denied the averments of the claimant‘s claim and submitted that claim is liable to be dismissed.

4.

Rejoinder has been filed the rejoinder denying the averments made in the written statement and affirmed the

fact mentioned in his claim statement.

5.

After completion of the pleadings, vide order dated 26.07.2019, following issues have been framed i.e.-

(i)

Whether the proceeding is maintainable.

(ii)

Whether there exists any employer and employee relationship between management and the

workman.

(iii) Whether the service of the workman was illegally terminated in violation of provisions of

Section 25-F of the ID Act.

(iv) To what relief the workman is entitled to.

6.

In order to prove and disprove the issues, both the claimant and the management have examined one

witness each. Claimant himself has entered into the witness box and reiterated the facts in his examination

in chief as stated by him in his claim statement. He has relied upon three documents i.e.-

(i) Ex. WW1/1 & Ex. WW1/2: Copy of demand letter dated 23.05.2018 alongwith postal receipts.

(ii) Ex. WW1/3: Claim filed on 13.06.2018 before the Labour Commissioner (Central).

7.

Workman in his cross-examination has admitted that he came to know of the vacancy from 01.01.2014

through one Girish Chand Joshi. He joined the management on 01.04.2014. He also admitted that no

advertisement, application form, appointment letter or identity card was issued to him. He stated that no

salary slip, PF, ESI, DA, HRA or other services benefits were ever provided to him. He submitted that he

never appeared in any such written test. He was getting his remuneration after each 15 days through

vouchers. He denied having any knowledge of M/s G.A. Digital Web World Pvt. Ltd. His services were

terminated on 04.04.2018.

8.

In rebuttal, management has filed the affidavit of evidence of Sh. Sajid Vishal, Assistant Superintendent

exhibited as Ex. MW1/A. He has deposed the facts, stating that Department of Posts had issued tender for

providing skilled, semi-skilled and un-skilled man power in PO & RMS Offices of Delhi Circle on

different dates and was awarded the contract to M/s G.A. Digital Web Word Pvt. Ltd. He further stated

that workman was provided by M/s G.A. Digital Web Word Pvt. Ltd. agencies/contractor as outsourced

delivery personnel for delivery of letter at Jhilmil Head Post Office, Delhi-110095. On account of filling up

of the said posts by making regular appointment, service of the workman was not required. Even after,

expiry of the contract with the agency M/s G.A. Digital Web Word Pvt. Ltd. on 31.12.2016, the delivery

work was managed by hiring the labour on daily rate basis as per the work load and requirement by the

department till regular appointments were made and was paid wages as per the minimum wages prescribed

by Delhi Government time to time. He also stated that during the visit by then Postmaster, Jhilmil HO, a

9384

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

total of 346 undelivered mail was recovered from the Jhilmil Industrial Area on 14.02.2015, which shows

extreme delinquency in duty by the claimant. He further said that there was an opportunity to the workman

to appear in the competitive exam conducted by Delhi Postal Circle, but, said opportunity has not been

availed by the workman. The extended terms and conditions of the tender were expired on dated

31.12.2016. He has relied upon two documents i.e.:

(i)

Ex. MW1/1:Letter of authorization dated 20.11.2023.

(ii)

Ex. WW1/2: tender document semi skilled manpower in Delhi Postal Circle by

M/s G.A. Digital Web Word Pvt. Ltd. (Colly.)

9.

Management‘s witness in his cross-examination has admitted that workman was not given any appointment

letter. He admitted that domestic enquiry was conducted against the claimant by the vigilance team of

management.

10.

So far so, issues no. 1 & 2 are concerned. The admission of the management that even after the expiry of

the contract, he continued take the service of the claimant itself establishes the relationship of employer-

employee between them. Though, it is an admitted fact that initially the claimant‘s services were hired

through contractor i.e. M/s G.A Digital Web World Pvt. Ltd., but, later on after expiry of the contract, his

services have been continuously availed by the management and the claimant was paid the minimum

pay scale.

11.

Moreover, the management has taken plea that enquiry was conducted by the vigilance team of the

management, but, the management has stated that in the written statement that there exist no relationship

of employer and employee, so, how the vigilance team has conducted the enquiry and even continued his

service till April, 2018, though, the 346 undelivered mail has been found on 14.02.2015.

12.

In the light of aforesaid evidence and admission of the management regarding conducting of the vigilance

inquiry, claimant has proved relationship of employer and employee between the management and the

workman. Therefore, the objection in this regard regarding the non-existence does not stand anywhere.

Therefore, both issues regarding the maintainability of the petition as well as the existence of employer-

employee relationship goes against the management and in favour of the workman.

13.

Now, come to the issue no. 3 i.e. “Whether the service of the workman was illegally terminated by the

management in violation of provision of Section 25-F of the I.D. Act”. Claimant‘s claim is that his services

have been terminated illegally on 26.04.2018 after withholding the salary of month of April, 2018.

14.

Before dealing with this issue, the texts of Sections 2(oo), 25F, G and H of the Act are required to be

reproduced herein:

Section 2(oo):

“retrenchment” means the termination by the employer of the service of a

workman for any reason whatsoever, otherwise than as a punishment inflicted by

way of disciplinary action, but does not include-

(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of superannuation if the

contract of employment between the employer and the workman concerned

contains a stipulation in that behalf; or

(c) termination of the service of the workman as a result of the on-renewal of the

contract of employment between the employer and the workman concerned

on its expiry or of such contract being terminated under a stipulation in that

behalf contained therein; or]

(d) termination of the service of a workman on the ground of continued ill-

health;]

25F. Conditions precedent to retrenchment of workmen: No workman employed in any

industry who has been in continuous service for not less than one year under an employer

shall be retrenched by that employer until-

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9385

(a) the workman has been given one month‟s notice in writing indicating the reasons for

retrenchment and the period of notice has expired, or the workman has been paid in lieu

of such notice, wages for the period of the notice;

(b) the workman has been paid, at the time of retrenchment, compensation which shall be

equivalent to fifteen days' average pay [for every completed year of continuous service]

or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate Government [or such

authority as may be specified by the appropriate Government by notification in the

Official Gazette].

25G. Procedure for retrenchment.—Where any workman in an industrial establishment,

who is a citizen of India, is to be retrenched and he belongs to a particular category of

workmen in that establishment, in the absence of any agreement between the employer

and the workman in this behalf, the employer shall ordinarily retrench the workman who

was the last person to be employed in that category, unless for reasons to be recorded the

employer retrenches any other workman.

25H. Re-employment of retrenched workmen.—Where any workmen are retrenched,

and the employer proposes to take into his employ any persons, he shall, in such manner

as may be prescribed, give an opportunity 4[to the retrenched workmen who are citizens

of India to offer themselves for re-employment and such retrenched workman] who offer

themselves for re-employment shall have preference over other persons.

15.

From the perusal of the above sections, it is apparent that the claimant/workman as defined under section

2(s) has not been given the absolute protection against his retrenchment/termination. Section 2(oo) of the

Act defines the word ―retrenchment‖. Clause-(a), (b), (bb) and (c) have been carved out the exception

from the definition of the retrenchment. Clause 2 (bb) which has been inserted by the Act 49 of 1984

w.e.f. 18.08.1984 had stated that when the services of the workman as a result of the non-renewal of the

contract of employment between the employer and the workman concerned on its expiry.

16.

If the person has not come in any of the category then the claimant who has completed one year of

continuous service cannot be retrench without compliance of the condition enumerated in section 25-F of

the Act. Section 25-F of the Act infers that the claimants have no absolute right to remain in the

employment of the management. The management can discontinue or retrench the workmen who have

completed not less than one year of service under the employer if he has given a one month notice in

writing indicating the reason for retrenchment and the period of notice has expired or he has paid the

wages in lieu of notice period. The second condition is that the retrenchment compensation shall also be

paid equivalent to 15-days of average pay for every completed year of continuous service. Besides this,

appropriate government shall also be informed regarding the retrenchment.

17.

Here, in the present case, it is already established that after expiry of the contract with M/s G.A Digital

Web World Pvt. Ltd., the service of the workman was continuously taken by the respondent and he had

been paid the monthly remuneration as per minimum wages. So, agreement of M/s G.A Digital Web

World Pvt. Ltd. has come to an end on 31.12.2016, thereafter, the services has been continued till

25.04.2018. Management‘s witness has not given any answer why the workman had worked till

25.04.2018 and has not come up for further cross-examination after 10.12.2024, meaning thereby, the

assertion of the claimant is true that he had lastly worked on 25.04.2018 with the management.

18.

It is settled legal position that the claimant has to prove that he has been continuously working with the

respondent for 240 days in a calendar year. Since, management has not brought any evidence contrary to

the fact that the workman has not worked for 240 days continuously in a calendar year than this Tribunal

has no option except to believe the version of the claimant that he has worked continuously 16.12.2016 to

25.04.2018 directly with the management.

19.

Since, it is an admitted case that the management has not made compliance of the provision of Section 25-

F of the Act, the termination of the workman is held to be illegal. Hence, issue no. 3 goes against the

management and in favour of the workman.

9386

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

RELIEF

20.

Now, the question arises as to what relief is given to the workman. In the present case, workman claimed

that he had served with the management from 01.04.2014 to 25.04.2018.Normally, when the termination of

the claimant is held to be illegal, reinstatement with full back wages shall be given to the workman. It has

been held by the Hon‘ble Supreme Court of India in the case titled as Employers, Management of central

P& D Inst. Ltd. vs. Union of India & Another, AIR 2005 Supreme Court 633 that it is not always

mandatory to order reinstatement even after the termination is held illegal. Instead, compensation can be

granted by the industrial adjudicator.

21. However, in the peculiar circumstances where the management‘s stand is that 746 posts were

recruited through competitive examination and the claimant‘s services were availed only for stock gap

arrangement for delivery of the post, relief of reinstatement with full back wages is not appropriate. Given

the circumstances where the workman did the work for four years with the respondent management either

through contractor or directly, a lump sum compensation of Rs. 5,00,000/- (Rupees Five Lac only) is

considered to be an appropriate relief. Hence, management is hereby directed to pay compensation of Rs.

5,00,000/- to the claimant within two months of notification of this award, failing which the management

shall also pay interest @ 9% per annum on the aforesaid amount from the date of award until realization. A

copy of this award be sent to the appropriate government for notification under section 17 of the Act. The

file is consigned to record room.

Date: 12.06.2026

ATUL KUMAR GARG, Presiding Officer.

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1763.— औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

एन.डी.एम.सी के प्रबंधतंत्र के संबद्ध गनयोजकों और श्री अशोक कुमार के बीच अनुबंध में गनर्ददष्ट औद्योगगक गववाद केन्द्रीय

सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-II, नई ददल्ली, पंचाि (ररफरेन्द्स न.- 25/2023) को जैसा दक अनुलग्नक में

ददखाया गया है, प्रकागशत करती है l

[la

एल- 42011/169/2012-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1763.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 25/2023) of the Central Government Industrial Tribunal

cum Labour Court-II, New Delhi as shown in the Annexure, in the Industrial dispute between the employers in

relation to N.D.M.C. and Sh. Ashok Kumar.

[No. L- 42011/169/2012-IR(DU)]

SALONI, Deputy Director

BEFORE CENTRAL GOVT. INDUSTRIAL TRIBUNAL CUM – LABOUR COURT NO. II,

NEW DELHI

I.D. No. 25/2013

Sh. Ashok Kumar vs. N.D.M.C.

Sh. Ashok Kumar

S/O Late Sh. Bhorey Lal,

R/O F-579, Mangolpuri,

Delhi-110083.

…Applicant/Claimant

Versus

The Director,

N.D.M.C., Palika Kendra, 5th Floor,

New Delhi-110001.

…Management/respondent

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9387

Counsels:

For Applicant/ Claimant:

Sh. Sunil Kumar, Ld. AR.

For Management/ Respondent:

Sh. Raghvendra Upadhyay, Ld. AR.

Award

09.03.2026

In exercise of powers conferred under clause (d) of Sub-section (1) and Sub-section (2A) of Section

10 of the Industrial Disputes Act, 1947 (14 of 1947), the Government of India, through the Ministry of

Labour and Employment, vide its Order No. L-42011/169/2012-IR(DU) dated 28.02.2013, has been

pleased to refer the following dispute between and for adjudication by this Tribunal in the following terms:

“Whether the action of the management of NDMC in not granting compassionate employment to

Shri Ashok Kumar S/o Late Shri Bhurey Lal is legal and justified? If not, what relief the

workman is entitled to?”

At the outset, it is important to mention here that the present case reflects the misuse of the

legalmachineryfor appointment on compassionate grounds.

In pursuance of the reference, the claimant appeared and filed his claim statement. He stated that his

father Sh. BhureyLal, who was working with the management, expired on 19.02.2004. Thereafter, the

claimant applied for appointment on compassionate grounds. He alleged that although the management had

given compassionate appointment to 92 applicants, his claim was rejected without assigning any reasons.

The management granted employment in its Fire Department to 9 persons in 2004, 8 in 2005, 11 in

2006, 15 in 2007, 44 in 2008, 80 in 2009, and 63 in 2010. It also granted employment in its Civil

Department to 72 persons in 2004, 118 in 2005, 148 in 2006, 138 in 2007, 143 in 2008, 133 in 2009,

and117 in 2010.According to him, despite large-scale appointments during the said period, he was denied

compassionate appointment. Being aggrieved, he approached the conciliation officer and upon failure of

conciliation, the present reference was made to this Tribunal. Therefore, the claimant has filed his claim

seeking employment on compassionate grounds in lieu of services rendered by his deceased father.

In response, the management filed a written statement stating that the present claim is a sheer

misuse and abuse of the processof law as no right accrues in favour of the claimant as a matter of

fundamental right to claim employment under the category of compassionate grounds. In fact, there are

certain guidelines drafted by the department as per the DoPT Guidelines and other provisions under which

such employments are governed,and the claimant did not fulfill the prescribed eligibility criteria. It was

further stated that the present reference has been made in a mechanical and stereotype manner without

considering the stand of the management. Hence, the management prayed for dismissal of the present

claim.

A rejoinder had also been filed by the claimant where he denied the averments made by the

management in its written statement and affirmed the averments in his claim statement.

From the pleadings of the parties, following issues were framed vide order dated 26.11.2013:

1. Whether the action of the management of NDMC in not granting compassionate employment

to Shri Ashok Kumar S/o Late Shri Bhurey Lal is legal and justified?

2. If not, what relief the workman is entitled to?‖

To prove his case, the claimant examined himself as WW1. He reiterated the facts stated in the

claim statement and relied upon the following documents:

1. Minutes of meeting of the committee constituted for examining the cases of appointments on

compassionate grounds. (Ex. WW1/1)

2. List of recommended cases of compassionate appointments duly attested by the management.

(Ex. WW1/2)

3. List of rejected cases of compassionate appointments duly attested by the management (Ex.

WW1/3).

9388

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

4. List of deferred cases of compassionate appointments duly attested by the management. (Ex.

WW1/4).

5. List of daily wagers appointed during 2004. (Ex. WW1/5).

6. Death certificate of the deceased father of the claimant (Mark A).

7. Family details and correspondences with the management regarding compassionate appointment.

(Mark B).

During cross-examination, the claimant admitted that he raised the dispute regarding compassionate

appointment after 8 years of his father‘s death. He further admitted that he had no knowledge of the

grounds and criteriaconsidered for compassionate appointment. He further deposed that his father passed

away leavingbehind four dependents, namely himself, his elder brother, his elder sister and his younger

brother. He admitted that his siblings were aware of his claim, however no ‗No Objection Certificate‘ had

been filed by them.

In rebuttal, the management also examined one witness, Ms. Meena Kaushal, Deputy Director

(Civil and Electrical Establishment). She deposed that the management, while considering and

recommending numerous applications of such candidates, follows the guidelines of the DoPT, such as the

seniority of the deceased, his age at the time of death, the dependents left behind by him, particularly

unmarried daughters, the number of years of service left at the time of death, physical disability of the

applicant, etc. She stated that the lists of recommended, rejected, and deferred cases were already on record

and had been exhibited by the claimant himself.

During her cross-examination, the witness admitted that the father of the claimant, Sh. Bhurey lal, was

working as a Mate in the Civil Engineering department and expired on 19.02.2004. she further admitted

that the claimant‘s application for his appointment on compassionate grounds was rejected as per the policy

and guidelines of DoPT after due consideration. She also admitted that the claimant‘s younger brother, Sh.

Sitaram, was receiving pension till attaining the age of 25 years.

During the course of proceedings, some startling facts has been emerged. On 10.03.2025, the management

produced the personal file of the claimant. It was revealed that the claimant‘s younger brother, Sh. Sitaram,

was shown to have received pension till 2014 and was shown to be 15 years old at the time of their father‘s

death. However, the personal file containedmultiple affidavits with different date of birth of Sh. Sitaram

and other family members. In one affidavit, Sh.Sitaramwas shown to be 22 years old at the time of death of

his father.In the application addressed to the secretary, NDMC, seeking appointment on compassionate

grounds, the claimant declared his own date of birth as 05.01.1985.The elder brother‘s date of birth was

shown as 11.09.1975, while the younger brother was shown to be born in 1995. The date of birth of her

elder sister, Smt. Krishna was shown as 15.05.1971. The affidavit of Sh. Rajinder Kumar dated 07.06.2004

states that his younger brother, Sh. Sitaram, was born on 10.12.1995. Another affidavit of the claimant, Sh.

Ashok Kumar, also dated 07.06.2004, shows the date of birth of Smt. Krishna, the claimant‘s sister, as

10.10.1985. In yet another affidavit of Sh. Rajinder Kumar dated 22.11.2004, he declared his own date of

birth as 04.07.1978. In another affidavit, Sh. Sitaramwas shown to have been born on 20.10.1982, while the

applicant, Sh. Ashok Kumar, was shown to have been born on 05.07.1979.

Further, the noting on the personal file showed that both Sh. Rajinder Kumar and the claimant Sh. Ashok

Kumar were married, whereas Sh. Sitaram was shown as unmarried. The pension record broughts by the

management reveal that Sh. Sitaram was shown to be entitled for family pension till he attained the age of

25 years. His date of birth was taken on the basis of a medical examination as 1989. Neither the year 1982

nor 1995was takeninto consideration. Except for a medical certificate furnished by management, nothing is

foundrecord to establish his age. There is no document to show whether any x-ray or a bone density test

was conductedfor determining his age, and no such report or film in this regard has been placed on record.

No reason has been assigned as to why the department deemed it necessary to medically examine Sh.

Sitaram to establish his correct age.

The mention of different age of Sh. Sitaram at different places, along with different age of the claimant Sh.

Ashok Kumar in their affidavits, makes the claimant‘s case doubtful. The claimant didn‘t disclose at any

point that he was married or unmarried. At some places, he is shown to have been born in 1979, while at

other places, his year of birth is mentioned as 1985, and the noting on record suggests that he was married.

Therefore, it appears that the claimant attempted to secure dual benefits, pension benefits to the younger

brother up to the age of 25, despite claiming his year of birth as 1995 or earlier, i.e., 1982, and appointment

on compassionate grounds, even though the claimant was already married, asnone of the several affidavits

disclose the marital status of the claimant.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9389

Considering the overall facts and circumstances, this Tribunal is of the view that the claimant is not entitled

to compassionate appointment. Hence, issue no. 1 is decided against the claimant and in favour of the

management. Consequent thereto, issue no. 2 also goes in favor of the management.

In light of the above findings, the reference is answered against the claimant and in favor of the

management. Accordingly, the claim of the claimant stands dismissed. A copy of this award be sent to the

appropriate government for notification under section 17 of the I.D Act. The case file is consigned to

record room.

Dated-09.03.2026

ATUL KUMAR GARG, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1764.—औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

जागमया गमगलया इस्लागमया यूगनवर्वसिी; एमडीईई इगीट्रोगनक्स प्राइवेि गलगमिेड के प्रबंधतंत्र के संबद्ध गनयोजकों और

श्रीमती कुसुम के बीच अनुबंध में गनर्ददष्ट औद्योगगक गववाद केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-II, नई

ददल्ली, पंचाि (ररफरेन्द्स न.- 01/2023) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है l

[la

एल- 42025/07/2026/227-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1764.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 01/2023) of the Central Government Industrial Tribunal

cum Labour Court-II, New Delhi as shown in the Annexure, in the Industrial dispute between the employers in

relation to Jamia Millia Islamia University; EMDEE Eigitronics Pvt. Ltd. and Smt. Kusum.

[No. L- 42025/07/2026/227-IR(DU)]

SALONI, Deputy Director

BEFORE CENTRAL GOVERNMENT INDSUTRIAL TRIBUNAL – CUM – LABOUR COURT-II,

NEW DELHI

I.D. NO. 01/2023

Smt. Kusum, W/o Sh. Kali Charan,

R/o- House No. 148, Gali no. 13, Near Govt. Primary School-Mill Hard Colony,

N.I.T. Faridabad, Haryana-121001.

Through- All India General Mazdoor Trade Union,

170, Bal Mukund Khand, Giri Nagar, Kalkaji, New Delhi-110019,

VERSUS

1. The Dy. Vice Chancellor,

Jamia Millia Islamia University,

Jamia Nagar, Okhla, New Delhi-110025.

2. EMDEE Eigitronics Pvt. Ltd.,

RZE-06, 02nd Floor, Mahaveer Enclave, Palam Dabri Main Road,

Sector-01-A, Dwarka, New Delhi-110045.

9390

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

AWARD

22.12.2025

This is an application U/S 2A of the Industrial Disputes Act (hereinafter referred to as ―the Act‖)

filed by the claimant stating that she was working with the management as ―Safai Karmachari‖ w.e.f.

01.01.2011 and his last drawn salary was Rs. 14,000/- per month. She had been doing their work with

diligently and honestly. Her service records were clean and she had not given any complaint so far. The

employers had made the claimant‘s signs on many blank papers, blank vouchers, blank agreement letters and

blank appointment letters at the time of appointment during the service but did not give a copy of the same to

the claimant. During the services, management never provided legal facilities like appointment letter, wages

slip, leave book, attendance card, annual and festival holidays, ESI & PF etc. When the claimant demanded all

the above mentioned legal benefits, the employer immediately became angry and in a spirit of revenge,

without paying the earned salary to the workman from 01.08.2019 to 02.09.2019, without prior notice, without

any notice charge sheet, without any rhyme and reason, claimant were illegally terminated by the management

on 03.09.2019. She had gone to the conciliation officer, but, no result was yielded. Hence, she had filed the

present claim with the prayer that she be reinstated with full back wages.

Management no. 1 has filed its WS. They have denied the averment made in the statement of claim.

They submitted that she was not engaged directly by the M-1 as her services had been hired through approved

outsource agency M/s. Emdee Digitronics Pvt. Ltd., till 31.03.2019 and thereafter, M/s Sharma Enterprises

had been awarded contract w.e.f. 01.04.2019. Her services had been discontinued due to her unsatisfactory

performance report, conveyed by the concerned Provost and the same was informed to her employer i.e. M/s

Sharma Enterprises for her discontinuation. They also submitted that claim is liable to be dismissed.

Management no. 2 has already been proceeded ex-parte vide order dated 06.10.2025.

After completion of the pleadings vide order dated 01.04.2025, following issues have been framed i.e.:-

(i)

Whether there existed any relationship of employee and employer between the claimant and

management no. 1.

(ii) Whether services of claimant had been terminated illegally and in violation of section 25F of

Industrial Disputes Act, 1947.

(iii) Relief, if any.

Now, the matter is listed for workman evidence. AR for the workman submitted that workman is not

in touch with him since long to substantiate her claim.

In these circumstances, when the claimant is not interested in perusing her case, this Tribunal has no

option but to dismiss her claim. Hence, claim stands dismissed. Award is passed accordingly. A copy of this

award is sent to appropriate government for notification under section 17 of the I.D. Act. Record of this file is

consigned to record room.

Date: 22.12.2025

ATUL KUMAR GARG, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1765.— औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

एमिीएनएल; स्िेलर डायनेगमक्स प्रा. गलगमिेड के प्रबंधतंत्र के संबद्ध गनयोजकों और श्री कृपा शंकर शमास के बीच अनुबंध में

गनर्ददष्ट औद्योगगक गववाद केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-II, नई ददल्ली, पंचाि (ररफरेन्द्स

न.- 31/2022) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है l

[la

एल- 42025/07/2026/226-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1765.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 31/2022) of the Central Government Industrial Tribunal

cum Labour Court-II, New Delhi as shown in the Annexure, in the Industrial dispute between the employers in

relation to MTNL; Stellar Dynamics Pvt. Ltd. and Sh. Kripa Shankar Sharma.

[No. L- 42025/07/2026/-IR(DU)]

SALONI, Deputy Director

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9391

BEFORE CENTRAL GOVERNMENT INDSUTRIAL TRIBUNAL – CUM – LABOUR COURT-II,

NEW DELHI

I.D. NO. 31/2022

Sh. Kripa Shankar Sharma, S/o Late Sh. Baij Nath Sharma,

R/o RZB-124-A, Gali No.-07, Gurudwara Road, Mahavir Enclave,

Palam, New Delhi-110045.

VERSUS

1. MTNL,

08, Bhikaji Cama Place, New Delhi-110066.

2. Stellar Dynamics Pvt. Ltd.,

C-48, 3rd Floor, Community Center, Industrial Area,

Phase-I, Nariina, New Delhi-110028.

AWARD

12.05.2026

Item No. 02

I.D. No. 31/2022

12th May, 2026

Present:

Sh. Devendra Kumar, Ld. AR alongwith the claimant.

None for the management no. 1. (MTNL)

Sh. Ghanshyam Mishra, Ld. AR for the management no. 2. (Stellar Dyanmics)

On the last date of hearing, after perusing the record, claimant was asked to clarify whether he

has completed 240 working days with the management no. 2 in a single year. Ld. Counsel for the

claimant submitted that he would produce a chart to clarify the working days of the claimant;

however, instead of producing the chart, he has called the workman. He emphasized that it was a

fixed term contract for two years and the respondent has terminated the workman illegally.

Record of the present case states that claim was filed by the claimant, stating that he was

appointed by the management no. 2 on the post of ―Lineman‖ on 11.08.2020, and his last drawn

wages were Rs. 19,864/- per month. It is the management no. 2 who has deputed to workman in the

management no. 1. He used to work sincerely; however, management no. 2 had illegally and

unjustifiably terminated his services on 31.03.2021 without any rhyme or reason and without paying

the earned wages for the month of Jan., Feb., and March, 2021 and without giving any notice or notice

pay to him. Hence, he filed the claim.

Both the managements have filed their respective written statements. Issues were framed on

29.08.2022. On the last date of hearing, this Tribunal had noted down that workman has failed to

complete the 240 days in a preceding year to his termination.

For ready reference, the provision of Sections 2A, 2(oo) & 25F of the Industrial Disputes

Act, 1947 (hereinafter referred to as ―the Act‖) are required to be reproduced herein:-

Section 2A:

[2A. Dismissal, etc. of an individual workman to be deemed to be an industrial dispute

[(1)] Where any employer discharges, dismisses, retrenches or otherwise

terminates the services of an individual workman, any dispute or difference

between that workman and his employer connected with, or arising out of, such

discharge, dismissal, retrenchment or termination shall be deemed to be an

industrial dispute notwithstanding that no other workman nor any union of

workmen is a party to the dispute.]

[(2)] Notwithstanding anything contained in section 10, any such workman as

is specified in sub-section (1) may, make an application direct to the Labour

Court or Tribunal for adjudication of the dispute referred to therein after the

expiry of forty-five days from the date he has made the application to the

9392

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Conciliation Officer of the appropriate Government for conciliation of the

dispute, and in receipt of such application the Labour Court or Tribunal shall

have powers and jurisdiction to adjudicate upon the dispute, as if it were a

dispute referred to it by the appropriate Government in accordance with the

provisions of this Act and all the provisions of this Act shall apply in relation to

such adjudication as they apply in relation to an industrial dispute referred to it

by the appropriate Government.

(3) The application referred to in sub-section (2) shall be made to the Labour

Court or Tribunal before the expiry of three years from the date of discharge,

dismissal, retrenchment or otherwise termination of service as specified in sub-

section (1)].

Section 2(oo):

“retrenchment” means the termination by the employer of the service of a

workman for any reason whatsoever, otherwise than as a punishment inflicted by

way of disciplinary action, but does not include-

(a)

voluntary retirement of the workman; or

(b) retirement of the workman on reaching the age of superannuation if the

contract of employment between the employer and the workman concerned

contains a stipulation in that behalf; or

(bb)

termination of the service of the workman as a result of the on-renewal of the

contract of employment between the employer and the workman concerned on

its expiry or of such contract being terminated under a stipulation in that

behalf contained therein; or]

(c) termination of the service of a workman on the ground of continued ill-health;]

Section 25F:

25F. Conditions precedent to retrenchment of workmen.- No workman employed

in any industry who has been in continuous service for not less than one year under

an employer shall be retrenched by that employer until-

(a) the workman has been given one month's notice in writing indicating the

reasons for retrenchment and the period of notice has expired, or the workman has

been paid in lieu of such notice, wages for the period of the notice;

(b) the workman has been paid, at the time of retrenchment, compensation which

shall be equivalent to fifteen days' average pay [for every completed year of

continuous service] or any part thereof in excess of six months; and

(c) notice in the prescribed manner is served on the appropriate government [or

such authority as may be specified by the appropriate Government by notification in

the Official Gazette.]

Provision of Section 2A of the Act has been carved out in the year 1967 when the

amendment has been made whereby dismissal, retrenchment or termination of an individual

workman is deemed to be the industrial dispute. Subsequently, another amendment was

made in 2010, whereby the appropriate government was relieved from applying of its minds

while making a reference to the Tribunal in cases of discharge, dismissal and retrenchment

of the individual workman. The workman may directly file the application after taking the

recourse of conciliation upon failure of the conciliation proceedings after 45 days. The next

rider is that the application must be filed before the Tribunal within three years from the

date of discharge, dismissal, retrenchment or termination.

Section 2(oo) of the Act defines the retrenchment by the employer of the service of

a workman for any reason whatsoever. However, five exceptions have been carved out

where such termination does not fall within the definition of retrenchment.

Section 25F of the Act imposes certain conditions upon the employer before

terminating the employee. The first condition is that the workman shall be given the one

month‘s notice in writing indicating the reasons for retrenchment and the period of notice.

The second condition is that the workman has been paid, at the time of retrenchment,

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9393

compensation which shall be equivalent to fifteen days' average pay [for every completed

year of continuous service] or any part thereof in excess of six months. The third condition

is that the notice in the prescribed manner is served upon the appropriate government. The

section 25F begins with the word that ―No workman employed in any industry who has

been in continuous service for not less than one year under an employer‖. Meaning thereby-

the person can be retrenched without complying the condition (a), (b) & (c), if he has not

completed one year of continuous service.

Section 25-B of the Act defines the term ―continuous service‖. Clause-2 of the said

section states that where a workman is not in continuous service within the meaning of

clause (1) for a period of one year or six months, he shall be deemed to be in continuous

service under an employer. Clause-2 of section 25-B of the Act is also required to be

reproduced herein-

Clause-2 of Section 25-B of the Act-

(2) where a workman is not in continuous service within the meaning of clause

(1) for a period of one year or six months, he shall be deemed to be in continuous

service under an employer-

(a) for a period of one year, if the workman, during a period of twelve

calendar months preceding the date with reference to which calculation is to be

made, has actually worked under the employer for not less than-

(i) one hundred and ninety days in the case of a workman employed below

ground in a mine;

(ii) two hundred and forty days, in any other case;

(b) for a period of six months, if the workman, during a period of six calendar

months preceding the date with reference to which calculation is to be made, has

actually worked under the employer for not less than-

(i) ninety-five days, in the case of a workman employed below ground in

a mine;

(ii) one hundred and twenty days, in any other case.

Explanation.- For the purpose of clause (2), the number of days on which a

workman has actually worked under an employer shall include the days on

which-

(i)

he has been laid-off under an agreement or as permitted by standing

orders made under the Industrial Employment (Standing Orders) Act,

1946 (20 of 1946), or under the Act or under any other law applicable to

the industrial establishment;

(ii)

he has been on leave with full wages, earned in the previous year;

(iii) he has been absent due to temporary disablement caused by

accident arising out of and in the course of his employment; and

(iv) in the case of a female, she has been on maternity leave; so, however,

that the total period of such maternity leave does not exceed twelve

weeks.]

Here, the claimant himself has stated in his claim statement that he worked on the

post of ―Lineman‖ with the management no. 2 from 11.08.2020 to 31.03.2021. If the period

of work is counted from 11.08.2020, then, the total number of days worked by the claimant

with the management no. 2 is less than 240 days. The claimant actually worked only 233

days i.e.:

21 days in August, 2020,

30 days in Sept, 2020

31 days in Oct, 2020,

30 days in Nov, 2020,

31 days in Dec, 2020,

9394

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

31 days in Jan, 2021,

28 days in Feb, 2021 and

31 days in March, 2021

In these circumstances, when the workman has not completed 240 days in a

calendar year, then, the protection against termination cannot be given. Therefore, the claim

of the claimant is not maintainable. Hence, the claim stands dismissed. Award is passed

accordingly. A copy of this award is sent to appropriate government for notification under

section 17 of the I.D. Act, 1947. Record of this file is consigned to record room.

ATUL KUMR GARG, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1766.— औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

मदर डेयरी फ्रूि एंड वेगजिेबल प्राइवेि गलगमिेड के प्रबंधतंत्र के संबद्ध गनयोजकों और मदर डेयरी फ्रूि एंड वेगजिेबल वकससस

एकता यूगनयन के बीच अनुबंध में गनर्ददष्ट औद्योगगक गववाद केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-II,

नई ददल्ली, पंचाि (ररफरेन्द्स न.- 33/2013) को जैसा दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है l

[la

एल- 42011/188/2012-आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1766.— In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 33/2013) of the Central Government Industrial Tribunal

cum Labour Court-II, New Delhi as shown in the Annexure, in the Industrial dispute between the employers in

relation to Mother Dairy Fruit & Vegetable Pvt. Ltd. and Mother Dairy Fruit & Vegetable Workers Ekta

Union.

[No. L- 42011/188/2012-IR(DU)]

SALONI, Deputy Director

BEFORE CENTRAL GOVT. INDUSTRIAL TRIBUNAL-CUM-LABOUR COURT NO-II, NEW

DELHI

I.D. NO. 33/2013

The General Secretary,

Mother Dairy Fruit & Vegetable Workers Ekta Union,

C-70, Indra Enclave,

Delhi-110041.

Versus

The Factory Manager & General Manager,

Mother Dairy Fruit & Vegetable Pvt. Ltd.,

Fruit & Vegetable Unit,

Mangolpuri Industrial Area,

Phase-I, Delhi-110083.

Present: None for the claimants.

Sh. Lalit Bhasin, Ld. AR along with Sh. Rupam Sajjan, & Ms. Vishali (Proxy) for the

management.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9395

AWARD

04.08.2025

1. In exercise of powers conferred under clause (d) of Sub-section (1) and Sub-section (2A) of Section

10 of the Industrial Disputes Act, 1947 (14 of 1947), the Government of India through the Ministry of

Labour and Employment, vide its Order No. L-42011/188/2012-IR (DU) dated 07.03.2013 has been

pleased to refer the following dispute between the employer, that is the Management of Mother Dairy

Fruit & Vegetable (P) Ltd. and their workman for adjudication by this Tribunal, terms of which are as

under:

“Whether the action of the management of M/s Mother Dairy

Fruit & Vegetable Pvt. Ltd. Mangolpuri signing settlement with a

Union, when as a case to determine majority union is pending

before RLC @ New Delhi is fair and justified? If not, what relief

the union is entitled for? ”

After receiving the said reference, notices were issued to both the parties. Both the parties have

appeared. Claimants have filed their claim statement stating that the above said union is registered

union under the Trade Unions Act, Govt. of NCT of Delhi, Department of Labour, 5 Sham Nath Marg,

Delhi vide registration no. F10/DRTU/NWD/10/03 and the union is also affiliated with CITU. Their

address is owned by National Dairy Development Board, an autonomous body of the Government of

India. The strength of the union at present is more than 135 out of the total strength of the employees of

the management. The union is its general body meeting of the union held on 20.03.2011, elected a new

set of office bearers/executive of the union for the year 2011-12. As per law, the union informed the

same to the management vide letter dated 20.04.2011, but vide letter dated 25.04.2011, the management

informed to above said union that they are not recognized union of the management. On 29.01.2004,

when the last time union elections held in the unit of management and thereafter the management and

elected union did not conduct election in the unit. On 01.01.2009, the union Mother Dairy Fruit &

Vegetable Employee Union again signed the settlement with the management and they did not conduct

the union election. When the Mother Dairy Fruit & Vegetable Workers Ekta Union came to know about

this settlement then every time the said union protests against the settlement which held between the

Mother Dairy Fruit & Vegetable Employees Union and management. On 11.12.2012, Mother Dairy

Fruit & Vegetable Employees Union and management again made settlement without given any

information to the other union and when the Mother Dairy Fruit & Vegetable Workers Ekta Union

came to know about the said settlement then immediately the Mother Dairy Fruit & Vegetable Workers

Ekta Union informed to the Labour Department and objected the said unfair and unjustified settlement.

Mother Dairy Fruit & Vegetable Workers Ekta Union is the majority union as it has a membership of

more than 75% workers of the management. The action of the management is completely unfair and

unjustified in signing settlement with Mother Dairy Fruit & Vegetable Employees Union, when a case

to determine majority union is still pending before the R.L.C., New Delhi. They made prayer that an

order be passed in favour of the workmen.

2. Management has filed its written statement denying the averment made in the claim statement. He

also submitted that claim be dismissed.

3. Claimant has filed the rejoinder denying the averment made in the written statement and affirmed

the facts made in their claim statement.

4. After completion of the pleadings vide order dated 18.02.2014, following issues have been framed

i.e.:-

(i)

Whether the action of the management of M/s Mother Dairy Fruits &

Vegetable Pvt. Ltd., Mangolpuri signing settlement with a union, when as

a case to determine majority union is pending before RLC @ New Delhi

is fair and justified? If so its effect?

(ii) What relief the workman is entitled to?

5. Examination in chief and cross-examination of the claimant has been recorded separately.

6. Examination in chief of the management witness has been concluded. On 19.10.2022, claimant was

found absent on repeated calls, therefore, right to cross examine the management witness by the claimant

hereby closed.

7. It is the matter of fact that the claimant has not been appearing since long, though, he has been

cross-examined. It is further the fact that the management has filed the affidavit of evidence of its witness

which remains unchallenged, unrebutted, where he has stated that the claimant‘s union has no right to

9396

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

raise the claim regarding his participation in the ongoing settlement between the management and the

recognized union. It has been further stated by the management that the claimant union‘s claim for grant

of the status of a protected workman was rejected by Sh. R.K. Meena, Assistant Labour Commissioner

(Central), New Delhi vide order dated 01.09.2011 and the writ petition filed by the claimant‘s union was

subsequently dismissed by the Hon‘ble High Court of Delhi vide order dated 08.05.2023.

8. In light of the said fact, issue no 1 is decided against the workman and in favour of the management.

Accordingly, the claim of the claimant stands dismissed. Reference is answered accordingly. A copy of

this award is sent to the appropriate government for notification under section 17 of the I.D. Act, 1947.

Record of the case file is consigned to record room.

ATUL KUMAR GARG, Presiding Officer.

Date: 04.08.2025

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1767.— औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

पूवी ददल्ली नगर गनगम, नई ददल्ली के प्रबंधतंत्र के संबद्ध गनयोजकों और श्री शेर ससह के बीच अनुबंध में गनर्ददष्ट औद्योगगक

गववाद केन्द्रीय सरकार औद्योगगक अगधकरण एवं श्रम न्द्यायालय-1, नई ददल्ली, पंचाि (ररफरेन्द्स न.- 104/2021) को

जैसा दक अनुलग्नक में ददखाया गया है, प्रकागशत करती है l

[la

एल-42012/19/2021 -आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1767.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 104/2021) of the Central Government Industrial

Tribunal cum Labour Court-1, New Delhi as shown in the Annexure, in the Industrial dispute between the

employers in relation to East Delhi Municipal Corporation, New Delhi and Shri Sher Singh.

[No. L-42012/19/2021-IR(DU)]

SALONI, Deputy Director

THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL

CUM LABOUR COURT DELHI - 1,

NEW DELHI.

ID No.104/2021

Shri Sher Singh S/o Sh. Har Lal (Ex-Safai Karmachari), Through Nagar Nigam Karamchari Sangh, Delhi Pradesh,

P-2/624, New Delhi-110086.

…Claimant

Versus

The Commissioner, East Delhi Municipal Corporation, 419, Udyog Sadan, Paptparganj, Industrial Area, Delhi-

110092.

…Management

AWARD

1.

In the present case, a reference was received from the appropriate Government vide letter No-L-

42012/19/2021 dated 12.07.2021 under clause (d) of sub-section (1) and sub-section (2A) of Section 10 of the Act, for

adjudication of a dispute, terms of which are as under:

SCHEDULE

„Whether Sh. Sher Singh S/o Sh. Har Lal, (Ex-Safai Karamchari) is entitled for reimbursement of his

Medical bills to the tune of Rs.1,50,000/- from the management of East Delhi Municipal Corporation, as

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9397

raised by Nagar Nigam Karmchari Sangh, Delhi vide letter dated 01.02.2019? If yes, to what relief is Sh.

Sher Singh entitled and what directions ar necessary in this regard?‟

Sh. Sher Singh Vs. The Commissioner, East Delhi Municipal Corporation.

2.

In the endorsement made in reference order, the appropriate Government commanded the parties raising the

dispute to file statement of claim, complete with relevant documents, list of reliance and witnesses with this Tribunal

within fifteen days of receipt of the reference order and to forward a copy of such statement of claim to the opposite

parties involved in the dispute. Despite directions so given, Claimant opted not to file the claim statement with the

Tribunal.

3.

On receipt of the above reference, notice was sent to the workman as well as the managements. In pursuance

to the notices sent, counsel for the claimant appeared some occasions. No claim statement was filed on behalf of

workman despite repeated adjournments. Thus, it is clear that the workman is not interested in adjudication of the

reference on merits.

4.

In these circumstances, this Tribunal is left with no choice, except to pass a ‗No Dispute/Claim‘ award. Let

this award be sent to the appropriate Government, as required under Section 17 of the Industrial Disputes Act, 1947,

for publication.

Date: 05.02.2026 Ajay Kumar Jain, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1768.— औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

मेससस इंगडयन ररन्द्यूएबल एनजी डेवलपमेंि एजेंसी गलगमिेड, नई ददल्ली; मेससस मनीष कोचसस गसक्योररिी एजेंसी, नई

ददल्ली के प्रबंधतंत्र के संबद्ध गनयोजकों और श्री शगश कुमार के बीच औद्योगगक गववाद अनुबंध में गनर्ददष्ट केन्द्रीय सरकार

औद्योगगक अगधकरण एवं श्रम न्द्यायालय-1, नई ददल्ली, पंचाि (ररफरेन्द्स न.- 185/2024) को जैसा दक अनुलग्नक में

ददखाया गया है, प्रकागशत करती है l

[la

एल-42025/07/2026/125 -आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1768.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 185/2024) of the Central Government Industrial

Tribunal cum Labour Court-1, New Delhi as shown in the Annexure, in the Industrial dispute between the

employers in relation to M/s Indian Renewable Energy Development Agency Ltd., New Delhi; M/s Manish

Coacher Security Agency, New Delhi and Sh. Shashi Kumar, workmen.

[No. L-42025/07/2026/125-(IR(DU)]

SALONI, Deputy Director

THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL

CUM LABOUR COURT DELHI - 1,

NEW DELHI.

ID No.185/2024

Sh. Shashi Kumar S/o Mangeram, Through Delhi Karamchari Sangh, Infront of Kalkaji Bus Depot, Govind Puri,

New Delhi-110019.

…Claimant

Versus

1.

M/s Indian Renewable Energy Development Agency Ltd.,

August Kranti Bhawan, 3rd Floor, Bhikaji Cama Place,

New Delhi-110066.

2.

M/s Manish Coacher Security Agency,

B-11, Harivansh Bhawan, RBCDDA Complex, Nangalraya,

New Delhi-110046.

…Management

9398

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

AWARD

1.

In the present case, a reference was received from the appropriate Government vide letter No-ND-25/I-

25/2024-IR dated 16.07.2024 under clause (d) of sub-section (1) and sub-section (2A) of Section 10 of the Act, for

adjudication of a dispute, terms of which are as under:

SCHEDULE

„Whether the services of the workman Shri Shashi Kumar S/o Late Mangeram, Ex-Security Guard have

been terminated illegally and/or unjustifiably by the management of M/s Manish Coacher Security

Agency contractor of M/s Indian Renewable Development Agency Ltd. w.e.f. 25.08.2023? If so, then what

relief the workman concerned is entitled and what directions are necessary in this respect?‟

2.

In the endorsement made in reference order, the appropriate Government commanded the parties raising the

dispute to file statement of claim, complete with relevant documents, list of reliance and witnesses with this Tribunal

within fifteen days of receipt of the reference order and to forward a copy of such statement of claim to the opposite

parties involved in the dispute. Despite directions so given, Claimant opted not to file the claim statement with the

Tribunal.

3.

On receipt of the above reference, notice was sent to the workman as well as the managements. In pursuance

to the notices sent, none appeared on behalf of the claimant. No claim statement was filed on behalf of workman

despite repeated adjournments. Thus, it is clear that the workman is not interested in adjudication of the reference on

merits.

4.

In these circumstances, this Tribunal is left with no choice, except to pass a ‗No Dispute/Claim‘ award. Let

this award be sent to the appropriate Government, as required under Section 17 of the Industrial Disputes Act, 1947,

for publication.

Date: 13.04.2026 AJAY KUMAR JAIN, Presiding Officer

नई ददल्ली, 7 अगस् त, 2026

का.आ. 1769.—औद्योगगक गववाद अगधगनयम (1947 का 14) की धारा 17 के अनुसरण में, केन्द्रीय सरकार,

चीफ़ पोस्िमास्िर जनरल, नई ददल्ली; मेससस जी.ए. गडगजिल वेब वल्डस प्राइवेि गलगमिेड, ददल्ली के प्रबंधतंत्र के संबद्ध

गनयोजकों और श्री शैलेंर कुमार और अन्द्य के बीच औद्योगगक गववाद अनुबंध में गनर्ददष्ट केन्द्रीय सरकार औद्योगगक

अगधकरण एवं श्रम न्द्यायालय-1, नई ददल्ली, पंचाि (ररफरेन्द्स न.- 244/2017) को जैसा दक अनुलग्नक में ददखाया गया है,

प्रकागशत करती है l

[la

एल-40011/14/2017 -आईआर(डीयू)]

सलोनी, उप गनदेशक

New Delhi, the 7th August, 2026

S.O. 1769.—In pursuance of Section 17 of the Industrial Dispute Act, 1947 (14 of 1947), the Central

Government hereby publishes the award (Reference No. 244/2017) of the Central Government Industrial

Tribunal cum Labour Court-1, New Delhi as shown in the Annexure, in the Industrial dispute between the

employers in relation to Chief Postmaster General, New Delhi; M/s G.A. Digital Web World Private Ltd., Delhi

and Shri Shailendra Kumar & ors., workmen.

[No. L-40011/14/2017-(IR(DU)]

SALONI, Deputy Director

THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL

CUM LABOUR COURT DELHI - 1,

NEW DELHI.

ID No.244/2017

Shri Shailendra Kumar & ors. Through All India General Mazdoor Union, 170, Bal Mukund Khand, Giri Nagar,

Kalkaji, New Delhi-110019.

…Claimant

Versus

1. Chief Postmaster General, Delhi Circle, Meghdoot Bhawan, New Delhi-110001.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9399

2. M/s G.A. Digital Web World Private Ltd., Registered Office No.1, Hargovind Enclave, Vikas Marg

Extension, Delhi-110092.

…Management

AWARD

1.

In the present case, a reference was received from the appropriate Government vide letter No-L-40011/14/2017

(IR(DU)) dated 21.08.2017 under clause (d) of sub-section (1) and sub-section (2A) of Section 10 of the Act,

for adjudication of a dispute, terms of which are as under:

SCHEDULE

„Whether the demand of the workmen Sh. Shailendera Kumar and others (mentioned in Annexure-A) for

declaring them the permanent workmen of the Department of Posts is legal and/or justified and if so what

relief are the workmen entitled to and what directions are necessary in this respect? 2. Whether the

workmen Sh. Shailendra Kumar and others (mentioned in Annexure-A) are entitled for wages and others

consequential benefits at par with the regular employees of department of Posts doing same and similar

work from the date of initial appointment and if so what directions are necessary in this respect?‟

Sh. Shailendra Kumar & ors. Vs. Chief Post Master General & anr.

2.

In the endorsement made in reference order, the appropriate Government commanded the parties raising the

dispute to file statement of claim, complete with relevant documents, list of reliance and witnesses with this Tribunal

within fifteen days of receipt of the reference order and to forward a copy of such statement of claim to the opposite

parties involved in the dispute.

3.

The A/R for the claimant along with claimant Sh. Sheelendra Kumar have recorded their statement

separately stating that they want to withdraw the present case which was referred by Central Labour Office for

adjudication as the case pertaining to the same relief is pending before the Hon‘ble CAT.

4.

In these circumstances, this Tribunal is left with no choice, except to pass a ‗No Dispute/Claim‘ award. Let

this award be sent to the appropriate Government, as required under Section 17 of the Industrial Disputes Act, 1947,

for publication.

Date: 03.02.2026 AJAY KUMAR JAIN, Presiding Officer

नई ददल्ली, 10 अगस् त, 2026

का.आ. 1770.— औद्योगिक fookn vf/kfu;e 1947 (a1947 dk 14) dh /kkjk 17 ds vuqlj.k esa

dsUnzh; ljdkj बैंक ऑफ इंगडया ds izca/kr=] lac) fu;kstdks vkSj muds deZdkjks ds chp vuqca/k esa fufnZ’V

औद्योगिक fookn esa dsUnzh; ljdkj औद्योगिक vf/kdj.k@Je U;k;ky;

ds iapkV

(a48/2005) izdkf”kr djrh gSA

[la

,y - 12012/1/2005- vkbZ vkj (ch-II)]

सलोनी, उप गनदेशक

New Delhi, the 10th August, 2026

S.O. 1770.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. 48/2005) of the Cent.Govt.Indus.Tribunal-cum-Labour Court

No. 1,Dhanbad as shown in the Annexure, in the industrial dispute between the management of Bank of India their

workmen.

[No. L-12012/1/2005- IR(B-II)]

SALONI, Deputy Director

BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1,DHANBAD

In the matter of reference U/S 10 (1) (d)& (2A) of I.D.Act. 1947.

Reference Case No. 48/2005

Parties:

Employers in relation to the management of Bank of India, Zonal Office,

Dhanbad

AND

9400

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Their Workmen

Present: Shri Sachindra Kumar Pandey

Presiding Officer

Appearances:

For the Employers :- Sri D.K. Verma, Ld. Advocate

For the workmen :- Sri D. Mukherjee, Ld. Advocate

State : Jharkhand.

Industry:-Banking

Dated 02/07/2026

AWARD

In exercise of powers conferred under clause (d) of sub-section (1) and sub –section (2A) of

Section 10 of the Industrial Disputes Act, 1947 (14 of 1947) Government Of India through the

Ministry of Labour, vide its Order No.L-12012/1/2005-IR(B-II) dated 30/05/2005 has been pleased

to refer the following dispute between the employer i.e. management of Bank of India, Zonal Office,

Dhanbad and their workman namely Sri Subhas Saw for adjudication by this Tribunal:

SCHEDULE

―Whether the action of the management of Bank of India, Dhanbad Zone, Dhanbad in

terminating Sh. Subhas Saw from the services of the Bank in subordinate cadre i.e. as

Driver from May, 2004 is justified? If not, to what relief the concerned workman is

entitled ?‖

2.

On perusal of the case record it transpires that previously the present reference was decided

in favour of the workman vide order dated 30.03.2015 but when the same was challenged by the

management before the Hon‘ble High Court of Jharkhand at Ranchi in W.P. (L) No. 4397 of 2015,

the Hon‘ble Court was pleased to set aside the Award passed by this Tribunal vide order dated

02.07.2019 and the matter was remanded to this Tribunal for taking fresh decision after hearing both

sides.

3.

The case of the workman as per the written statement filed on his behalf is that the workman

Subhas Saw has been working as permanent Driver of Bank of India since 01.11.1991 continuously

to the satisfaction of the management. He has been working as Driver and driving vehicles of the

Bank for the purpose of business of the bank and management is the owner of aforesaid vehicles. He

has been rendering service and producing goods for the benefit of the Bank Management but the

management had been paying him wages at the rate of Rs. 1340/- and subsequently Rs. 1700/- from

01.10.1994. The concerned workman represented before the management several times for his

proper wages and benefit at par with other employees of the Bank and at the initial stage the

petitioner was assured by the management for regularization and wages at par with other employees

and he waited on the assurance of the management but unfortunately all of sudden the management

terminated the service of the workman on May 2004 by stopping him from duty. The petitioner had

put in continuous service from 01.11.1991 to May 2004 and had put in more than 240 days

attendance in each calendar year. His service was terminated when he insisted for regularization and

proper wages. He was terminated without following the mandatory provision of Section 25-F of the

I.D. Act. He represented before the management for illegal and arbitrary termination and seeing no

other alternative raised industrial dispute that ended in failure and that ultimately resulted in the

present reference. The action of the management in terminating the services of the concerned

workman was illegal, arbitrary and against the principle of natural justice as well as against the

provision of Section 25-F of the I.D. Act and he prayed to answer the reference in favour of the

workman.

4.

On the other hand the case of the management as per the written statement cum rejoinder is

that the present reference is not legally maintainable. The issued reference for adjudication is vague,

indefinite and cannot be adjudicated. Sri Subhas Saw has filed his written statement describing

himself as disputant claiming that he was the workman of the Bank. No employer-employee

relationship exists between the disputant and the Bank Management. He was never selected by the

Bank Selection Committee of the Bank as per the Recruitment Rules of the management. He was

never employed as employee of the Bank. As per the Regulation 26 of the Bank of India Service

Regulations, 1979 the Bank Officers in Scale IV to VII are allowed to use the Bank Car for personal

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9401

purpose for which they require personal driver also and to enable them to engage for personal driver

the wages to be paid to the personal drivers are also reimbursed by the Bank at specified level. Such

drivers are identified and engaged purely on personal basis without any supervision and control of

the Bank and similarly there is no service condition fixed by the Bank for personal driver and

therefore there is no employer-employee relationship between the Bank and the said driver at any

point of time. The petitioner was engaged by the Bank Officers in their personal capacity from time

to time to drive the car provided to them by the Bank for their personal purpose. Such agreement was

entirely between the Officer concerned and the petitioner in their personal capacities. The petitioner

has worked as personal driver of the Bank Officers for certain period and he is advancing his claims

to treat him as an employee of the Bank and is demanding for his absorption in the employment of

the company. The petitioner was personal driver in personal capacity, he cannot vest any right or

claim on the latter for bank employment. He was neither appointed nor terminated by the Bank from

the services of the Bank and therefore the question of adjudication for termination of the services of

the petitioner does not arise and he is not entitled to any relief. In rejoinder it has been stated that the

petitioner has never worked as permanent driver of the Bank of India and he was never appointed as

a driver of the Bank and again it has repeated the facts already stated and denied the stand taken by

the workman in his W/S.

5.

The petitioner has also filed a separate rejoinder to the W/S of the management in which he

has denied all the claim of the management.

6.

Issue

―Whether the action of the management of Bank of India, Dhanbad Zone, Dhanbad in

terminating Sh.Subhas Saw from the services of the Bank in subordinate cadre i.e. as Driver from

May, 2004 is justified? If not, to what relief the concerned workman is entitled?‖

7.

In support of his case the workman has adduced the documents related to his salary from

August 1992 to June 1999 and Log Book from June 2003 to April 2006.

8.

No oral evidence has been adduced from the side of the workman.

9.

On the other hand the management has not adduced any oral or documentary evidence.

10.

Heard both sides and perused the materials on record.

11.

The Ld. Counsel on behalf of the workman has submitted that he had been working as

Driver in Bank of India since 01.11.1991 and had been driving vehicles as employee of the

management but he was not being paid monthly wages at par with the permanent employees and

therefore he raised the issue and being annoyed by the same the management illegally terminated his

services w.e.f. May 2004 without issuing any reason and therefore prayed to set aside the termination

and reinstate him.

12.

On the other hand the Ld. Counsel on behalf of the management has submitted that the

petitioner was never appointed by the management as employee of the Bank nor he was ever issued

any appointment letter and therefore no employer-employee relationship exists between them. As per

the regulation 26 of the Bank of India the Bank Officers in Scale IV to VII were allowed to use

Bank‘s Car for personal purpose and they were also allowed to engage personal driver as per their

requirement and the wages to be paid to them by the said officer were to be reimbursed by the bank

up to the specified level and so the personal driver of the bank‘s executive is not the employee of the

bank and the present petitioner accordingly is not entitled to any relief in this case and has no right to

regularization or reinstatement.

13.

On perusal of the documents adduced from the side of the workman though not exhibited it

transpires that there are two types of documents, first one is the copy of register of the Log Book

from June 2003 to April 2006 of the Bank of India and the second one is the details of salary given

to the petitioner Subhas Saw from August 1992 to June 1999 which also bears the signature of the

petitioner Subhas Saw after receiving the payment in each and every month and the second set of

documents are the copy of Motor Car Log Book from June 2003 to April 2006 and it also contains

the name of Subhas Saw with the number of vehicle. This also contains the details of Journey,

Kilometers etc.

These documents have not been disputed by the management and in its W/S the

management has admitted the employment of Subhas Saw as personal driver of the Bank Executive.

14.

In view of the documents as well as the period of engagement of the petitioner Subhas Saw

from year 1991 to May 2004 it is established that he has continued his job for quite long period and

therefore the relationship of the employer-employee is created between the petitioner and the

9402

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

management even though he was not issued any appointment letter and the above documents add the

authenticity as well as genuineness of the case of the workman and in such circumstances the action

of the management of Bank of India , Dhanbad Zone, Dhanbad in terminating Sri Subhas Saw from

the services of the Bank in subordinate cadre i.e. as Driver from May, 2004 is held not at all justified

and he is entitled to reinstatement by way of relief but as this is year of 2026 and about 2 decades

have passed, the direction of reinstatement is not appropriate rather the management is directed to

make payment of Rs. 10 Lakh as compensation to the workman Subhas Saw within a period of 3

months from the date of publication of this Award. The reference is answered accordingly.

Let the copies of Award in duplicate be sent to the Ministry of Labour & Employment,

Government of India, New Delhi for information and notification.

SACHINDRA KUMAR PANDEY, Presiding Officer

नई ददल्ली, 10 अगस् त, 2026

का.आ. 1771.—vkS|ksfxd fookn vf/kfu;e] 1947(1947 dk 14)dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj बोकारो थमसल गडवीज़न ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp]

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/2019) dks izdkf”kr djrh gS]

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एल-20012/62/2019-आईआर (सीएम-I)]

जयदीप यादव , उप गनदेशक

New Delhi, the 10th August, 2026

S.O. 1771.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. No. 30/2019) of the Central Government Industrial Tribunal-

cum-Labour Court, Dhanbad-I as shown in the Annexure, in the industrial dispute between the Management of

Bokaro Thermal Division and their workmen.

[No. L-20012/62/2019– IR (CM-I)]

JAIDEEP YADAV, Deputy Director

BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1,DHANBAD

In the matter of reference U/S 10 (1) (d)& (2A) of I.D.Act. 1947.

Reference Case No. 30/2019

Parties:

Employers in relation to the management of Bokaro Thermal

Division, DVC, Bokaro Thermal, Bokaro

AND

Their Workmen

Present: ShriSachindra Kumar Pandey

Presiding Officer

Appearances:

For the Employers :-Sri B.K. Jha, Advocate

For the workmen :-Sri D. Mukherjee, Advocate

State : Jharkhand.

Industry:-Coal

Dated 22/07/2026

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9403

AWARD

In exercise of powers conferred under clause (d) of sub-section (1) and sub –section (2A) of

Section 10 of the Industrial Disputes Act, 1947 (14 of 1947) Government Of India through the

Ministry of Labour, vide its Order No. L-20012/62/2019-IR(CM-I) dated 11/11/2019 has been

pleased to refer the following dispute between the employer i.e. management of Bokaro Thermal

Division, DVC and their workman through Joint General Secretary, Bahujan Mazdoor Union at

Mines Rescue Station, Dhansar, Dhanbad for adjudication by this Tribunal:

SCHEDULE

―Whether the supply worker Shri Rajesh Kumar has been unjustifiably denied the

seniority in the empanelment list drawn from Contract workers of DVC, BTPS despite

working from 1987 in the BTPS, DVC plant? If yes, then what remedies he is entitled

to?‖

2.

The case of the workman as per the written statement filed on his behalf is that the worker

concerned was engaged as a Supply worker under a contractor namely M/s S.P. Yadav at the Bokaro

Thermal Power Station of Damodar Valley Corporation, Bokaro since February, 1987. On

30.08.1992 and thereafter on 17.09.1993 a memorandum of settlement/tripartite agreement was

reached in between the parties duly participated by the management of DVC, The Contractor, DVC

Labour Union, Bokaro Thermal and United Contactors‘ Workers Union, Bokaro memorandum of

settlement/tripartite agreement, the Chief Engineer-1, BTPS on 10.09.1998 prepared a

panel/seniority list of the contract labourers at BTPS but the name of the concerned worker was not

included in the said list. On the date of preparation of panel i.e. on 10.07.1998 the cut off date was

28.02.1997 and the total number of man days till cut off date of the worker comes to total of 2981

days, therefore as per the number of days worked by the worker concerned the position of the worker

in the panel list should have been determined at Sl. No. 5. The contractual labourers with less

number of man days than that of the worker concerned have been empanelled and subsequently

regularized in the service and therefore the worker concerned has right to claim in the seniority list

of the panel of workers. The letter dated 19.07.2007 issued by the management is arbitrary, malafide,

illegal and contrary to determination as made by them and therefore the worker has suffered the

monetary benefits as per settlement dated 30.08.1992 and 17.09.1993 and accordingly the workman

is entitled for grant of benefits with retrospective effect. The workman also approached the Regional

Labour Commissioner (Central) for deciding the issue and on 12.04.2002 after making enquiry with

regard to the claim of the petitioner and going through the detail report of the Assistant Labour

Commissioner with regard to the total number of mandays/attendance of the petitioner from 1987 to

2001 at the Operation & Maintenance Department of BTPS made a request to the management

concerned to implement the settlement during 30 days and submit the implementation report and at

last it was prayed to direct the concerned management to place the name of the concerned workman

in the appropriate place i.e. at Serial No. 5 in Seniority list of 1998 as per the seniority retirement by

Regional Labour Commissioner on the basis of man days and absorb the worker concerned as

regular employee as identical worker with much lesser number of man days and grant all the

monetary benefits as per the memorandum of settlement dated 30.08.1992 and 17.09.1993.

3.

On the other hand the management has filed its written statement on 28.10.2021 in which it

has submitted that the reference is not maintainable either in fact or in law. The panel of seniority of

supply workers/labourers was prepared on the basis of directives of Labour Commissioner Bihar in

the year 1999 by the committee under the Chairmanship of Dy. Labour Commissioner, State of

Bihar, Bokaro Steel City in terms of Tripartite agreement dated 30.08.1992 for payment of extending

additional benefit of Rs. 405/- per month by DVC as inability to absorb them. Accordingly two lists

one of 594 and another of 95 were prepared and approved by the Director (HRD) wherein name of

Shri Rajesh Kumar along with other 3 labourers did not figure in the seniority panel as they were

engaged by the contractor to perform job of their Munsi/Supervisor not as a worker. On the basis of

non inclusion of their names in the above list additional benefits of Rs. 405/- was not given to them.

The seniority of contractor workers was determined as recommended by the committee headed by

Dy. Labour Commissioner State of Bihar, Bokaro Steel City in terms of tripartite agreement dated

30.08.1992. So the Regional Labour Commissioner (Central) has no jurisdiction to conciliate

Industrial Dispute as such. Rajesh Kumar should have approached for above Industrial Dispute to the

appropriate authority under Labour Department i.e. Government of Jharkhand and not RLC (C) as

per jurisdiction. The Seniority panel so determined by the committee was published on all the notice

board vide letter no. BT/CE/IR(R)-1190 dated 16.03.1998 but Shri Rajesh Kumar failed to represent

to DLC, State of jurisdiction and the Chairman of the Committee and so he was not entitled for the

above benefits. As per tripartite agreement financial benefit has been given to those who had been

9404

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

enlisted and not to be given any benefits with retrospective effect to Rajesh Kumar the petitioner. As

per letter of RLC (C) dated 16.08.2002 the name of Rajesh Kumar was not included in the seniority

list but he falsely mentioned that his name was included. Further the committee was formed in terms

and conditions mentioned in the Addl. Director (IR) Letter dated 31.05.2006 and dated 01.02.2007

for consideration of the seniority with the following conditions:

i) An undertaking is to be taken from the individual contractor workers that they will not claim any

additional benefit from retrospective effect.

ii) After obtaining the above undertaking the committee was constituted to determine the inter-

seniority amongst the four contractor labour including Rajesh Kumar.

iii) After determination of seniority his position was duly fixed at the bottom of the existing list of

the contractor labours at BTPS.

iv) The additional benefit was to be given after fixation of seniority.

v) Sri Rajesh Kumar did not furnish undertaking but having been paid additional benefits since

20.05.2006 and his seniority was correctly being placed.

vi) Sri Rajesh kumar was neither party to the settlement dated 30.08.1992 and 12.08.1993 as he did

not come within the purview of the workmen his job being of supervisory in nature. He was never

workmen under the contractor M/s. S.P. Yadav under BTPS and his total works/mandays worked as

a supervisor can not be considered equal to the other workers for considering his seniority so he was

excluded.

vii) He was engaged as Munsi/Supervisor to look after supervisor job and preparation of bills of said

contractor M/s S.P. Yadav.

viii) RLC (C) is not the competent authority to determine seniority as the Labour Commissioner

Bihar Patna was signatory of the Tripartite Agreement dated 24.12.1999. As per the High Court

Order in the W.P. No. 101/2001, Hon‘ble Court observed that petitioner move to ALC Patna who

recommended the case of petitioner but it is found that petitioner approached to the ALC (C)

Hazaribagh who was not competent authority as the said agreement was made before the Labour

Commissioner Bihar.

(ix) As per enquiry report submitted by Labour Commissioner Hazaribagh it shows that Rajesh

Kumar worked since 1997 whereas his letter forwarded dated 26.04.1994 shows that he himself had

written that he worked from 1989 and also duly certified by the concerned contractor M/s S.P. Yadav

on the body of letter that he has been working since 1989.

(x) Rajesh Kumar was out of the purview of the workmen and not covered by the tripartite

agreement to avail any benefit.

(xi) Rajesh Kumar not enlisted as supply worker so payment of benefit of Rs. 500/- per month was

discontinued and at last it was prayed to decide the reference in favour of the management of DVC

and reject the claim of the petitioner.

4.

The case record shows that additional written statement has also been filed on behalf of the

workman in which they have stated that Central Government being the appropriate Government u/s

2(a) of the I.D. Act, 1947 has been pleased to refer this present industrial dispute for adjudication.

The concerned workman has been working as contractor‘s labour since 1987 under the Registered

Contractor namely M/s. S.P. Yadav at DVC Bokaro Thermal Power Plant in the job of DVC which

is perpetual and perennial in nature. The management of DVC at BTPS has few other contractors

employed in the job of the Plant and the Management of DVC records and maintains the inter-se

seniority list of such contract workers working on the job which is so done so that such supply

workers who have been employed for decades together against the permanent job of DVC are

permanently regularized under the management of DVC itself on the basis of the number of mandays

worked by such workers and they are paid all such monetary and other benefits at par with the

workers directly appointed by the DVC having been put on the rolls of the DVC, BTPS. The

management of DVC entered into Tripartite Agreement with such Contractor‘s Workers Union from

time to time and has been executing agreements resolving all the disputes. By virtue of

Memorandum of Settlement/Tripartite Agreement dated 30.08.1992 and 17.09.1993 between the

management of DVC and DVC Labourers‘ Union Bokaro Thermal and United Contractors‘ Workers

Union, the Chief Engineer-1 BTPS prepared a panel/seniority list of such Contractors‘ Workers on

10.07.1998 in which the name of the workman concerned namely Rajesh Kumar was not included

although he has completed 2981 mandays upto the cut off date 28.02.1997 which is illegal whereas

in the seniority position he must have been at Serial No. 6, which has deliberately ignored. It has not

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9405

only deprived him of regularization of his service under DVC but has caused heavy monetary loss.

The concerned workman approached the management of DVC BTPS by way of writing various

letters but nothing was done by the management and being aggrieved by the same the workman filed

a Writ before the Hon‘ble High Court of Jharkhand, Ranchi in CWJC No. 101 of 2000(R) in which

the Hon‘ble Court directed the workman to approach the competent authority or to raise an industrial

dispute and thereafter the concerned workman again made representation before the management but

again nothing was done and thereafter he raised grievance before the Regional Labour Commisioner

(Central) Dhanbad in which the management raised baseless objection. The concerned workman

prayed before the R.L.C. (Central) Dhanbad or physical verification of mandays of the work

performed by the workman and for determination of his seniority on the basis of mandays worked in

which the RLC (Central) Dhanbad entrusted the job of spot examination of records maintained by

the DVC to the ALC (C) Hazaribagh vide his order dated 16.10.2021 and thereafter the physical

verification on their records lying with the management were carried out and the report was

submitted dated 25.01.2002 wherein the details of mandays right from the year 1987 to February

1997 for which he worked has been noted. The A.L.C.(C) Hazaribagh has also verified the

attendance of the workman from the P.F. and other relevant documents from March, 1997 to

December, 1997 and thereafter mandays worked has been verified till 2001 as the management

failed to produce the records after February, 1997 and on that basis the R.L.C.(C) Dhanbad directed

the management of DVC vide letter dated 12/16.04.2002 certifying the mandays worked by the

concerned workman Rajesh Kumar. As the concerned workman was working at O&M Deptt of

BTPS regularly from the year 1987 and also meeting the required number of attendance in a year and

his name must have been included in that period for the registration as per the Memorandum of

Settlement. In such a position the management of DVC initially granted the benefits of the

settlement from 30.08.1992 to 17.09.1993 but surprisingly his name could not find place in the panel

and the direction of the R.L.C.(C) Dhanbad was not complied by the management. Subsequently the

genuine case of the workman was realized by the management and ultimately the Additional

Director DVC by his order dated 11th February, 1989 asked the Chief Engineer-1, BTPS to include

the name of Rajesh Kumar along with 4 others in the seniority list but the approval to the inclusion

was accorded in the year 2006 which is gross injustice on the part of the management of DVC and

ultimately it was prayed to hold the action of the management of DVC BTPS is illegal and improper

and regularize him with retrospective effect with all the monetary benefits.

5. A rejoinder has also been filed to the additional written statement of the workman by the

management in which the management has taken the stand inter-alia that Sri Rajesh Kumar was

engaged in Supervisory Job/Munshi and he does not come within the purview of ‗Workman‘ and has

denied all the stand taken by the workman in the additional W/S and repeated the stand taken in its

W/S.

6.

A rejoinder of the workman has also been filed separately to the W/S of the management in

which all the points and grounds taken by the management has been denied and the stand taken in its

W/S and additional W/S has been repeated.

7.

Issue

―Whether the supply worker Shri Rajesh Kumar has been unjustifiably denied the seniority

in the empanelment list drawn from Contract workers of DVC, BTPS despite working from 1987 in

the BTPS, DVC plant? If yes, then what remedies he is entitled to?‖

8.

In support of his case the workman has examined himself as WW-1. He has also submitted

the following documentary evidence:

Exhibit W-1 – Verification of mandays letter dated 25.01.2002 written by the ALC (C) Hazaribagh

to RLC (C) Dhanbad

Exhibit W-2 – Letter dated 12/16.04.2002 of RLC (C) Dhanbad to the Chief Engineer-I, BTPS DVC,

Bokaro Thermal, Bokaro

Exhibit W-3 – Certificate dated 21.10.1998 issued by M/s. S.P. Yadav

Exhibit W-4 – Pass for contractor labourer

Mark ‗X‘ for Identification – Photocopy of payment register.

9.

On the other hand the management has examined MW-1 Tanisha Silvi and MW-2 Partha

Sarathi Mukherjee. The management has submitted the following documentary evidence:

Mark ‗Y‘ for Identification – Office Circular dated 27.01.2011

9406

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Mark ‗Y/1‘ for Identification – Affidavit of Shiv PujanYadav

Mark ‗Y/2‘ for Identification – Letter dated 06.10.2025 of M/s. S.P. Yadav to the Branch Manager,

SBI, BTPS, Bokaro Thermal

Mark ‗Y/3‘ for Identification – Letter dated 29.09.2025 of M/s. S.P. Yadav to the Branch Manager,

SBI, BTPS, Bokaro Thermal

10.

Heard both sides and perused the materials on record.

11.

The Ld. Counsel on behalf of the workman has submitted that the concerned workman

Rajesh Kumar was working since February, 1987 in DVC as Contract worker continuously for more

than 240 days in every year but he has not been given the benefit of the Tripartite Agreement with

the management in the year 1992-1993 and in the year 1998 the seniority list that was published does

not include his name whereas his name should have been included on Serial No. 5 and he was denied

the benefit and raised industrial dispute before the ALC Hazaribagh. Management says that he was

working as Supervisor/munshi whereas he has never worked as Supervisor or Munshi. The ALC has

also made spot verification of the documents of the management and found that he was working as

supply worker. He was also being paid by the management and ultimately it was prayed to allow this

case in favour of the workman.

12.

oner Rajesh Kumar is the eldest son of the Contractor M/s. S.P. Yadav and he was

supervising his work of contract and working as Supervisor/Munshi and that is why the name of

Rajesh Kumar was not included in the list of panel of the contractor workman because he is not

workman under the definition of section 2(s) of the I.D. Act, 1947. The Tripartite Agreement was

prepared on the direction of the Labour Commissioner, Bihar, Patna on 30.08.1997 and therefore the

Central Government Regional Labour Commissioner has no jurisdiction and for all these things it

was prayed to hold that the workman is not entitled to any relief.

13.

On perusal of the oral testimony of WW-1 Rajesh Kumar it appears that as per his affidavit

he was working as contract worker since February, 1987 in DVC continuously for more than 240

days in every year but he has not been given the benefit of the Tripartite Agreement with the

management in the year 1992-1993 and in the year 1998 the seniority list that was published does

not include his name whereas his name should have been included on Serial No. 6 and he was denied

the benefit and raised industrial dispute before the ALC Hazaribagh. Management says that he was

working as Supervisor whereas he has never worked as Supervisor or Munshi. The ALC has also

made spot verification of the documents of the management and found that he was working as

workman. He was also being paid by the management and ultimately it was prayed to allow this case

in favour of the workman. In cross-examination he has stated that in the panel list of 1998 of the

DVC his name was not included and therefore he has filed this case. He had approached the Hon‘ble

Jharkhand High Court two times for this. In CWJC No. 101/2000 it was directed by the Hon‘ble

High Court to approach the competent authority and file representation there. As per the same he

filed representation before the RLC Dhanbad. He was engaged to work in DVC by the contractor

M/s. S.P. Yadav. The Tripartite Agreement was entered into on 03.08.1992 and 17.09.1993 and as

per the same Dy. CLC Bokaro is the competent authority.

14.

As regards the documentary evidence of the workman, Exhibit W-1 is the letter dated

25.01.2002 written by the Assistant Labour Commissioner (C) Hazaribagh to the RLC (C) Dhanbad

regarding verification of mandays of the work performed as a contract labour in D.V.C. BTPS,

Bokaro Thermal vis-à-vis empanelment of the name in the list which reveals that the ALC

Hazaribagh visited the BTPS on 22.01.2002 to conduct the verification and assessment of mandays

work by Sri Rajesh Kumar under the contractor and the management produced the muster roll and

wages sheet from 1987 to 1997 in which the mandays was worked out and the same has been

detailed in this letter. It also reveals that after February 1997 to 2001 the workdays done by Rajesh

Kumar was assessed from PF Statement and return that has also been detailed therein. Exhibit W-

2is the letter dated 12/16.04.2002 written by RLC (C) Dhanbad to the Chief Engineer-I, BTPS DVC,

Bokaro Thermal, Bokaro regarding empanelment of the workers deployed by the then contractors at

BTPS in accordance with the Memorandum of Settlement dated 30.08.1992 and 24.12.1999 and writ

petition filed by Sri Rajesh Kumar bearing No. CWJC 101/2000 dated 14.08.2001 and it was

enquired into the said matter by ALC(C) Hazaribagh and the detailed report was submitted to this

office. The total number of attendance as per the same has been detailed in this letter and accordingly

it was requested to implement the said settlements within 30 days from the date of the receipt of this

letter and submit the implementation report to this office to take further steps as per provision of I.D.

Act, 1947. Exhibit W-3 is the Certificate dated 21.10.1998 issued by M/s. S.P. Yadav, Proprietor in

which it has been certified that Sri Rajesh Kumar son of Sri Shiv Pujan Choudhary of Bokaro

Thermal has been working under the contract as a Mazdoor for work in DVC, BTPS ‗B‘ (O&M)

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9407

Coal Handling Plant since 16.02.1987. Exhibit W-4 is the copy of Gate Pass of the contractor

labourer in the name of Rajesh Kumar issued by CISF, Government of India, BTPS (DVC) Bokaro

which shows that he has the access at the actual place of work and was permitted to go there through

this pass. Another document is Mark ‗X‘ for identification which is the photo copy of the payment

register in the name of the contract Mazdoors in which on Serial No. 4 the name of Rajesh Kumar

has been mentioned.

15.

Now as regards the evidence of the management, MW-1 Tanisha Silvi, Manager H.R. of

BTPS, DVC, Bokaro Thermal, Bokaro has deposed that Rajesh Kumar is the eldest son of the

Contractor M/s. S.P. Yadav and he was supervising his work of contract and working as Munshi and

that is why the name of Rajesh Kumar was not included in the list of panel of the contractor

workman because he is not workman under the definition of section 2(s) of the I.D. Act, 1947. The

Tripartite Agreement was prepared on the direction of the Labour Commissioner, Bihar, Patna on

30.08.1997 and therefore the Central Government Regional Labour Commissioner has no

jurisdiction and for all these things it was prayed to hold that the workman is not entitled to any

relief. She has further stated that she has identified the photo copy of the office circular dated

27.01.2011, photo of notary affidavit of S.P. Yadav dated 13.09.1999, monthly payment sheet dated

06.10.2025 and photo copy of Ex-gratia payment sheet dated 29.09.2025 marked ‗Y‘ to ‗Y/3‘

respectively for identification. In cross-examination she has stated that she has never made the

physical verification of the concerned workman. She has not filed any document to show that the

concerned workman was working as supervisor. The appropriate government of the DVC is Central

Government. The name of the workman was not included in the list of panel because he was working

as supervisor.

MW-2 Partha Sarathi Mukherjee is Senior Manager H.R. of BTPS, DVC, Bokaro Thermal, Bokaro

and he has stated that Rajesh Kumar was eldest son of contractor M/s. S.P. Yadav and was working

as Munshi and Supervising the work of his father. On 30.08.1992 Tripartite Settlement was done on

the direction of Labour Commissioner, Patna under the chairmanship of Dy. CLC, Bokaro. On

16.03.1998 the Seniority list of the labourers were published by the management but Rajesh Kumar

had not given his written application deliberately to Dy. CLC Bokaro and later on he raised this

dispute before the ALC, Hazaribagh which is not valid. All the labourers have given undertaking on

the direction of DVC Head Office but Rajesh Kumar had not given the same. Vide notification dated

19.08.2010 the appropriate government became the Central Government and prior to that the ALC,

RLC of the Central Government had no right to interfere in the matter of DVC. In cross-examination

he has stated that he was appointed in year 2010. He has made supervision of Rajesh Kumar. He has

no circular or notification regarding the work of Rajesh Kumar as Munshi. On seeing the letter dated

04.06.2001 the witness says that it may be that in the year 2002 DVC was under the Central

Government. This witness has avoided the answer of the question whether he has filed any document

before the Court to show that Rajesh Kumar was working as Supervisor.

16.

Now as regards the documentary evidence of the management, on perusal of the first

document that is mark ‗Y‘ for identification it appears that this is an office circular dated

27.01.2011 which reveals that consequent upon the amendment of the Industrial Dispute Act 1947

vide Notification dated 19.08.2010 and 15.09.2010 of the Government of India, Ministry of Labour

& Employment, the Central Government would be the Appropriate Government for establishment of

the DVC under the I.D. Act. The Second document is mark ‗Y/1‘ for identification that is photo

copy of the affidavit of S.P. Yadav which reveals that he is also known as Shiv Pujan Choudhary but

it has not mentioned anything regarding the concerned workman Rajesh Kumar as the management

is claiming that he was working as Supervisor/ Munshi of S.P. Yadav. The third document is mark

‗Y/2‘ for identification which is photo copy of letter of Shiv Pujan Yadav to the Branch Manager,

SBI, BTPS, Bokaro Thermal regarding the disbursement of monthly payment for the month of

September 2025 to different workers from M/s. S.P. Yadav A/c No. 11209875646 and which bears

the name of Rajesh Kumar on Serial No. 31 as worker. The fourth document that is mark ‗Y/3‘ for

identification is photo copy of letter of Shiv Pujan Yadav to the Branch Manager, SBI, BTPS,

Bokaro Thermal regarding the disbursement of Ex-gratia payment for the period from 01.04.2024 to

31.03.2025 to different workers from M/s S.P. Yadav A/c No. 11209875646 and this also bears the

name of Rajesh Kumar on Serial No. 31 as worker.

17.

As regard the contention of the Ld. Counsel on behalf of the management that the petitioner

Rajesh Kumar does not come under the purview of definition of the workman as he was working as

Supervisor/Munshi of his father contractor M/s. S.P. Yadav and so his name was not included in the

empanelment but in support of his contention he has not been able to submit even a single

documentary evidence which has also been admitted in Para-27 of the cross-examination of MW-1

Tanisha Silvi and MW-2 Partha Sarathi Mukherjee has avoided the answer of this question in Para-

9408

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

23 of his cross-examination. On the other hand Exhibit W-1, Exhibit W-2, Exhibit W-3 and Exhibit

W-4 go to prove that Rajesh Kumar was working as contract labour in the D.V.C., BTPS, Bokaro

Thermal and on verification it was found genuine and these documents also reveal the mandays from

1987 to 1997 and this also reveals regarding the P.F. Statement of Rajesh Kumar. He was also issued

a Gate Pass which proves his entry and availability at the place of work as contract worker and the

copy of wage register of Rajesh Kumar as well as the others has also been submitted which further

corroborates the case of the Rajesh Kumar that he was working as contract labour in D.V.C., BTPS.

Not only this, the documents submitted on behalf of the management (Mark ‗Y/2 and ‗Y/3‘for

identification) also reveal that Rajesh Kumar was made payment in his account as worker from the

account of contractor M/s. S.P. Yadav and therefore, the contention of the Ld. Counsel on behalf of

the management that Rajesh Kumar was not working as contract labour is hereby rejected.

18.

Now as regard the contention of the Ld. Counsel on behalf of the management that on the

basis of directive of the Labour Commissioner, Bihar in the year 1999 by the committee under

chairmanship of Dy. Labour Commissioner, State Bihar, Bokaro Steel City in terms of Tripartite

Agreement dated 30.08.192 prepared list of empanelment and therefore the appropriate authority in

this case is State Government whereas this case has been referred to this Tribunal by the Central

Government, is also not acceptable in view of admission of MW-1 in Para-29 of her cross-

examination that the appropriate government of the D.V.C. is Central Government and therefore

even if the seniority list was prepared on the direction of the Labour Commissioner, Patna, Bihar

there is no bar for the workman Rajesh Kumar to raise the industrial dispute before the ALC/RLC

(Central).

19.

Thus in view of the ALC‘s spot verification report, provident fund proof, gate pass and

payment list of the wages available on the case record this Tribunal is of the opinion that Rajesh

Kumar has been able to establish that he has been working as contract labour in D.V.C., BTPS since

1987 therefore it is held that the supply worker Sri Rajesh Kumar has been unjustifiably denied the

seniority in the empanelment list drawn from the contract workers of D.V.C., BTPS despite working

since 1987 under BTPS D.V.C. Plant and accordingly he is entitled to the inclusion of his name in

the seniority list and the management is directed to include his name in the seniority panel and

regularize him w.e.f. February, 1987 with all the consequential benefits. The reference is answered

accordingly.

Let the copies of Award in duplicate be sent to the Ministry of Labour& Employment,

Government of India, New Delhi for information and notification.

SACHINDRA KUMAR PANDEY, Presiding Officer

नई ददल्ली, 10 अगस् त, 2026

का.आ. 1772.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14)dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj बीबीसीएल ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa

-सह-

] धनबाद-I, ds iapkV

(

/2002) dks izdkf”kr djrh gS]

[la

एल-20012/1/2002-आईआर (सीएम-I)]

जयदीप यादव, उप गनदेशक

New Delhi, the 10th August, 2026

S.O. 1772.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. No. 53/2002) of the Central Government Industrial Tribunal-

cum-Labour Court, Dhanbad-I as shown in the Annexure, in the industrial dispute between the Management of

BCCL, and their workmen.

[No. L-20012/1/2002– IR (CM-I)]

JAIDEEP YADAV, Deputy Director

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9409

BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1,DHANBAD

In the matter of reference U/S 10 (1) (d)& (2A) of I.D.Act. 1947.

Reference Case No. 53/2002

Parties:

Employers in relation to the management of Kusunda Area

of M/s. BCCL, Kusunda, Dhanbad

AND

Their Workmen

Present: ShriSachindra Kumar Pandey

Presiding Officer

Appearances:

For the Employers :-Sri S.N. Ghosh, Advocate

For the workmen :-Sri D. Mukherjee, Advocate

State : Jharkhand.

Industry:-Coal

Dated 02/07/2026

AWARD

In exercise of powers conferred under clause (d) of sub-section (1) and sub –section (2A) of

Section 10 of the Industrial Disputes Act, 1947 (14 of 1947) Government Of India through the

Ministry of Labour, vide its Order No. L-20012/1/2002-IR(C-I) dated 09/05/2002 has been pleased

to refer the following dispute between the employer i.e. management of Kusunda Area of M/s.

BCCL, Dhanbad and their workman through Vice President, Mine Mazdoor Union, Dhanbad for

adjudication by this Tribunal:

SCHEDULE

―Whether the action of the management of M/s BCCL in not regularizing Sri Sushil

Kumar Singh as Loading Supervisor/Loading Munshi is fair and justified? If not, to what

relief is the concerned workman entitled and from what date?‖

2.

The case of the workman as per the written statement filed on his behalf is that the

concerned workman namely Sri Sushil Kumar Singh is a permanent employee and he was

transferred as sampling attendant to Dhansar Colliery in November 1999 and he was directed to

report for duty to the Officer Incharge for loading of coal under office order no. BCCL/Dhan/A-

6/99/1799 dated 28.11.1999 issued by the Project Officer of Dhansar/Industry Colliery and he was

assigned the responsibilities of supervision of over loading/under loading of coal in wagons which

was not in consonance with the designation of the loading attendant. In the above capacity of

supervising the over loading/under loading of coal he was permanently made to work in the 3rd shift

at Dhansar Railway Siding where from the coal is loaded in wagon. The remaining 1st and 2nd shift

for the same job, two loading supervisors have been posted. The workman has not been issued any

authorization for working as loading clerk/loading supervisor only for the purpose of evading

responsibility of the management to regularize the workman on the job he is doing and which will

also entitle him for the wages payable to the loading clerk in view of the regular deployment of the

workman as loading supervisor/ loading munshi w.e.f. Jan 2001. The action of the management in

not regularizing Sri Sushil Kumar Singh as Loading Supervisor/Loading Munshi is not fair and

justified particularly in view of the fact that the workman is exclusively managing the 3rd shift and

during the same job which his co-worker Sri Y.P. Singh and Kapildeo Singh are doing with 1st& 2nd

shift respectively. At last it was prayed to answer the reference in favour of the workman.

3.

On the other hand the case of the management as per the written statement cum rejoinder

dated 10.12.2002 filed on its behalf is that Sri Sushil Kumar Singh initially was appointed under the

Coal Control Organization and subsequently on its closure Sri Singh was transferred and posted at

Dhansar Colliery in the month of November 1999. Sri Singh is presently designated as Sampling

Attendant in Grade ―F‖ under SLU Grade ―E‖. While he was posted at Dhansar Colliery his existing

9410

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

designation and scale of pay was that of sampling attendant and hence he has been posted to Dhansar

Colliery siding to look after the job of loading of wagons. His job included only to look after loading

of wagons which is not the same job as that of loading clerk. It was further submitted that since Sri

Singh is a sampling attendant, he was allowed to look after the job of loading of wagon and as such

in no way Sri Singh be considered for regularization on the post of loading clerk as the scale of pay

as well as the grade of loading clerk differs from the sampling attendant in which the workman is

still working without any force by the management. It was further submitted that the workman has

claimed his regularization as Loading Supervisor/ Loading Munshi which is not in tune with the

actual state of affairs. The workman should either have claimed for regularization as loading

supervisor or for regularization as loading Munshi in particular but inspite of that workman has

claimed for regularization on the basis of either of which is illegal and ill motivated. He cannot claim

regularization as loading supervisor/loading Munshi as his nature of job differs from that of

sampling attendant. By way of rejoinder the management has admitted the case of the workman to

the extent that he was transferred to Dhansar Colliery in November 1999 and under the office order

as mentioned but he has further stated that it is incorrect to say as would be evident in the office

order dated 28.11.1999 that he was asked to work as loading supervisor. The management has denied

the rest of the stand taken by the workman in different paragraphs of the written statement and lastly

prayed that Award be passed that the workman concerned is not entitled to any regularization as

claimed.

4.

A separate rejoinder has also been filed on behalf of the workman denying all the claims and

stands taken by the management in its written statement and repeating the claim of the regularization

of the workman.

5.

Issue

―Whether the action of the management of M/s BCCL in not regularizing Sri Sushil Kumar

Singh as Loading Supervisor/Loading Munshi is fair and justified? If not, to what relief is the

concerned workman entitled and from what date?‖

6.

In support of his case the workman has submitted the following documentary evidence:

Exhibit W-1 – Copy of Office Order dated 07.07.2006

Exhibit W-2 – Copy of Office Order dated 13.07.2006

Exhibit W-3 – Copy of Office Order dated 18.07.2006

Exhibit W-4 – Copy of Office Order dated 17.08.2006

Exhibit W-5 – Copy of Office Order dated 17.10.2013

7.

On the other hand the management has examined MW-1 Ghanshyam Prasad Sinha in

support of his case and submitted following documentary evidence:

Exhibit M-1 – Copy of Office Order dated 28.11.1999

Exhibit M-2 – Copy of Letter dated 14.09.2001 written by Dy. Chief Personnel Manager, Kusunda

Area to the ALC (C) Dhanbad in case of non-regularization of the workman Sushil Kumar Singh.

8.

Heard both sides and perused the materials on record.

9.

The Ld. Counsel on behalf of the workman has submitted that the workman Sushil Kumar

Singh has been shown as Sampling Attendant in the Office Order dated 28.11.1999 but that is an

error which was corrected later on vide office order dated 13.07.2006 and his designation is

Sampling Assistant not Sampling Attendant. The management is taking from him the job of

supervision of wagon under loading and over loading since 1999 but he has still not been regularized

as loading supervisor/loading munshi like that of Sri Y.P. Singh and Kapildeo Singh. His work is of

permanent nature and therefore claimed his regularization.

10.

On the other hand the Ld. Counsel on behalf of the management has submitted that the

workman Sushil Kumar Singh is Sampling Attendant and so he cannot be regularized at the post of

loading supervisor/loading munshi because nature of job of both these post are different from each

other and prayed to reject the claim of the workman.

11.

On perusal of the documentary evidence of the workman i.e. Exhibit W-1 which is office

order dated 07.07.2006 issued by the Dy. Chief Personnel Manager, Kusunda Area it transpires that

the workman Sushil Kumar Singh who was previously transferred from Dhansar Colliery to Area

Office vide letter dated 03.06.2006 is hereby re-posted at Gondudih Colliery in his existing capacity

under Sales & Dispatch Department keeping in view the Ref. Case No. 53 of 2002 and accordingly

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9411

he was released from Area Office w.e.f. 10.07.2006 with directive to report for duty to Project

Officer/Agent, Gondudih Colliery. Exhibit W-2 is the Office Order dated 13.07.2006 issued by Dy.

Chief Personnel Manager, Kusunda Area and on its perusal it is evident that the designation of the

workman Sushil Kumar Singh that has been indicated as Sampling Mazdoor in the Office Order

dated 07.07.2006 should be read as Sampling Assistant and thus it is clear that his correct

designation is Sampling Assistant and not Sampling Attendant or Mazdoor that has been mentioned

in the written statement of both the parties as well as in the Office Order dated 07.07.2006. Exhibit

W-3 is the Office Order dated 18.07.2006 issued by the Project Officer, Gondudih Colliery which

shows that Sushil Kumar Singh has now been transferred to Gondudih Colliery in his existing

capacity under Sales & Dispatch Department and therefore he is directed to report for his duty to the

Manager Gondudih Colliery for further assignment of work. Exhibit W-4 is the Office Order dated

17.08.2006 and by this order the workman Sushil Kumar Singh, Sampling Assistant and one Sri

Satrudhan Singh, Loading Clerk in Gondudih Colliery have been directed to supervise the coal

transporting work from the Gondudih Colliery coal stock to the Railway Siding, K.D.S.-2 and

maintain the entire record of the same and keep the same. Exhibit W-5 is the Office Order dated

17.10.2013 issued by the Project Officer, Gondudih Colliery by which the workman Sushil Kumar

Singh was attached with Md. Sagir Alam, Sr. Manager (Mining), Gondudih Khas Kusunda Colliery

and he will work under his supervision.

12.

As regards the evidence of the management, MW-1 Ghanshyam Prasad Sinha who is

working as Welfare Inspector at Kusunda Area Office of M/s. BCCL has deposed that the workman

was initially appointed in the office of coal controller and on its closure the workman was transferred

to Dhansar Colliery siding in the year 1999 vide office order dated 28.11.1999 and his duty was to

collect sample from the siding and get it tested from the laboratory. Though he was asked to look

after the loading and unloading of wagons at Dhansar Siding as per office order but he could not

perform the same and preferred the job of sampling attendant and accordingly he did the same. The

salary of the workman is that of the sampling attendant which he was getting while working at the

office of the coal controller. The work of sampling attendant is not that of loading munshi/loading

supervisor and he is not legally entitled for regularization as such as he was transferred from coal

controller office after its closure. In cross-examination he has stated that he cannot say all details of

the area that the concerned workman is working in Dhansar Colliery. He has denied the suggestion

that the workman is looking after the job of loading supervisor.

13.

The documentary evidence of the management i.e. Exhibit M-1 which is the Office Order

dated 28.11.1999 issued by the Project Officer Dhansar/Industry Colliery says that vide office order

no. 2849 dated 22.11.1999 of the Dy. Chief Personnel Manager, Kusunda Area, the workman

namely Sushil Kumar Singh and 3 others named therein who have been posted in Dhansar shall be

doing the work that has been mentioned against their name and designation at Dhansar Siding and

they will contact the concerned officer of Dhansar Siding for their work. Exhibit M-2 is the letter

dated 14.09.2001 written by the Dy. Chief Personnel Manager, Kusunda Area to the ALC (C)

Dhanbad regarding the industrial dispute for non-regularization of Sri Sushil Kumar Singh and in

Paragraph-2 of the same he has admitted that Sushil Kumar Singh has been directed to look after the

job of wagon loading at Dhansar Siding inter-alia.

14.

Admittedly the concerned workman was appointed initially in the office of coal controller

and on its closure he was transferred to Dhansar Colliery siding in the year 1999 vide office order

no. 1799 dated 28.11.1999 (Exhibit M-1) and at the same time on perusal of Exhibit W-2 which is

office order dated 13.07.2006 issued by Dy. Chief Personnel Manager, Kusunda Area it is clear that

his designation was Sampling Assistant though by mistake on several places it has been wrongly

mentioned as Sampling Attendant and the Office Order dated 28.11.1999 (Ext.M1) is self-evident

that the workman Sushil Kumar Singh was placed to supervise the work of wagon under loading/

over loading and that is why the reference order speaks about the adjudication whether the workman

is entitled for regularization on the post of Loading Supervisor/Loading Munshi. Office Order dated

17.08.2006 (Exhibit W-4) also makes it clear that after the workman Sushil Kumar Singh was

transferred to Gondudih Colliery he was again deputed to supervise the work of coal transporting

and maintain the entire record for the same. In Paragraph-2 of the letter dated 14.09.2001 issued by

Dy. Chief Personnel Manager, Kusunda Area in the name of ALC (C) Dhanbad (Exhibit M-2) also

the management has admitted that the workman Sushil Kumar Singh has been directed to look after

the job of Wagon Loading at Dhansar Siding and MW 1 has also admitted the same though he

further added that but the workman preferred the job of sampling attendant but he has no

corroborating documentary evidence of it that he preferred to act as sampling attendant instead of the

assigned job of supervision of loading and unloading of wagon so this portion of his oral evidence

can not be relied and so all these things go to establish that though the designation of the workman

Sushil Kumar Singh was Sampling Assistant, since the year 1999 itself he was doing the work of

9412

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

supervision of the wagon loading /unloading and as the work of supervision of wagon loading and

unloading is perennial and permanent nature of job and the concerned workman is doing this job for

such a long time, this Tribunal is of the opinion that he is entitled for regularization as Loading

Munshi.

15. Thus on the basis of the above discussion of the facts, circumstances and materials available on

the case record this Tribunal finds and holds that the action of the management of M/s. BCCL in not

regularizing Sri Sushil Kumar Singh as Loading Supervisor/Loading Munshi is neither fair nor

justified and he is entitled to be regularized as Loading Munshi since January 2001. The reference is

answered accordingly.

Let the copies of Award in duplicate be sent to the Ministry of Labour& Employment,

Government of India, New Delhi for information and notification.

SACHINDRA KUMAR PANDEY, Presiding Officer

नई ददल्ली, 10 अगस् त, 2026

का.आ. 1773.—vkS|ksfxd fookn vf/kfu;e] 1947 (1947 dk 14) dh /kkjk 17 ds vuqlj.k esa]

dsUnzh; ljdkj बीबीसीएल ds izca/kra= ds lac) fu;kstdks vkSj muds deZdkjksa ds chp] vuqca/k esa fufnZ’V

vkS|ksfxd fookn esa

-सह-

] धनबाद-I, ds iapkV (

/2009) dks izdkf”kr djrh gS]

[la

एल-20012/41/2009-आईआर (सीएम-I)]

जयदीप यादव, उप गनदेशक

New Delhi, the 10th August, 2026

S.O. 1773.—In pursuance of Section 17 of the Industrial Disputes Act, 1947 (14 of 1947), the Central

Government hereby publishes the Award (Ref. No. 35/2009) of the Central Government Industrial Tribunal-

cum-Labour Court, Dhanbad-I as shown in the Annexure, in the industrial dispute between the Management of

BCCL, and their workmen.

[No. L-20012/41/2009– IR (CM-I)]

JAIDEEP YADAV, Deputy Director

BEFORE THE CENTRAL GOVERNMENT INDUSTRIAL TRIBUNAL NO.1,DHANBAD

In the matter of reference U/S 10 (1) (d)& (2A) of I.D.Act. 1947.

Reference Case No. 35/2009

Parties:

Employer in relation to the management of NEE Department, Koyla

Bhawan Of M/s. BCCL, Koyla Nagar, Dhanbad

AND

Their Workman

Present: Shri Sachindra Kumar Pandey

Presiding Officer

Appearances:

For the Employers :- Sri N. Nath, O.S. Legal H.Q

For the workman :- None.

State : Jharkhand.

Industry:-Coal

Dated 22/07/2026

AWARD

In exercise of powers conferred under clause (d) of sub-section (1) and sub –section (2A) of

Section 10 of the Industrial Disputes Act, 1947 (14 of 1947),Government Of India through the

Ministry of Labour, vide its Order No.L-20012/41/2009 -IR(CM-I) dated 29/05/2009 has been

pleased to refer the following dispute between the employer i.e. management of NEE Department,

Koyla Bhawan of M/s. BCCL, Dhanbad and their workman through Divisional Secretary, Bihar

Colliery Kamgar Union, Saraidhella, Dhanbad for adjudication by this Tribunal:

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9413

SCHEDULE

―i) Whether the demand of the Bihar Colliery Kamgar Union from the management

of NEE Department of M/s. BCCL for correction in the seniority list of EDP personnel,

T&S Gr. D working in different areas/reg. stores and HQ office of BCCL and

cancellation of promotion given vide letter dated 01.02.2008 is justified and legal?

ii) To what reliefs are the workmen concerned entitled?‖

FINAL SENIORITY LIST OF JR. D.E.O./JR. P.V.O. IN TECH. GR. ‗D‘ WORKING IN

DIFFERENT COLLIEIRIES AREAS/H.QTRS. OF BCCL.

Sl.

No.

Name

Qualification

Date of Apptt.

Date of Entry in

Present Grade

Place of Posting

1.

Sri Lalu Yadav

B.A (Hons)

16.2.94

28.10.95

Mohuda Unit (RS

Com. Cent.)

2.

Ashok Kr. Shaw

B.Com

15.9.92

21.11.95

RS Lodna Area

3.

Sanjay Kr. Gupta

B.A.

15.9.92

21.11.95

-do-

4.

Pradip Kr. Saw

M.Com

15.9.92

21.11.95

RS Lodna

5.

Biswanath Ghosh

M.Com.

8.1.93

25.11.95

RS Bhowra

6.

Mantosh Banerjee

B.Com.

20.1.92

28.11.95

Lodna Area

7.

Abhijit

Bhattacharjee

B.Com(Hons)

29.4.94

28.11.95

RS Bhowra Area

8.

Subir Mazumdar

B.Com

20.11.90

1.12.95

CS Ekra

9.

Rama Shankar

Tiwary

B.Com(Hon)

12.9.92

1.12.95

PB Area

10.

Sushil Kr.

Soren(ST)

B.A.

9.9.88

1.12.95

RS Kusunda

11.

Murari Singh

B.A.

30.5.90

1.12.95

-do-

12.

Uday Shankar Paul

B.Com

25.12.92

1.12.95

RS C.V.Area

13.

Surendra Kr. Verma

M.A.(Hindi)

23.11.93

1.12.95

RS Lodna Area

14.

Dilip Kumar (SC)

B.Com.LLB

28.9.93

2.12.95

CS Ekra

15.

Abhay Kr. Singh

B.A.

10.2.84

2.12.95

Bhowra R.S

16.

Shib Shankar Ghosh

B.Com

16.3.93

6.12.95

RS Moonidih

17.

Smt. Aruna Sinha

I.A.

25.9.90

8.12.95

Moonidih WJA

18.

Sri A.K.Sinha

I.A.

28.9.93

8.12.95

-do-

19.

Rakesh Kumar

B.A. Pt.-I

23.7.92

8.12.95

Mohuda Unit

20.

S.N.Ahmed Khan

I.A.

21.12.91

8.12.95

Lodna Area

21.

A.K. Mishra

I.Com

10.4.87

8.12.95

RS WJA

Moonidih

22.

Vinod Paul

B.Com(Hons)

22.1.93

8.12.95

-do-

23.

Satyadeo Sharma

B.Sc.

02.5.89

9.12.95

RS Kusunda

24.

Sri R.P.Srivastava

B.Sc., MBA

22.9.89

12.12.95

RS Sudamdih

25.

B.K. Srivastava

M.A.

9.2.04

16.12.95

-do-

26.

Trilochan Mahato

B.Com

5.10.90

26.12.95

CV Area

27.

M.K. Mandilwar

M.A.(Hist.& SOCIO)

LLB

21.5.92

21.1.96

Kustore Area.

28.

Md. Imtiyaz Ahmad

Pt-I BA

22.2.91

29.1.96

RS Katras Area

29.

Suresh Lal Verma

BA

29.11.90

30.1.96

-do-

30.

Pijush Vagad

B.Com(Hons)

17.3.93

12.2.96

Bastacolla Area.

31.

Ranjeet Kr. Rawani

B.A.

29.11.90

3.5.96

RS Block-II Area.

32.

V.K. Tiwari

B.Com(Hon)

4.6.93

9.9.96

Kustore Area.

33.

D.K. Singh

Matric

19.9.89

9.9.96

PB Area

34.

Smt. Sadhana Devi

I.A.

8.7.93

9.9.96

Bhalgora

35.

Sri Chandra

Shekhar Prasad

B.Com LLB

15.9.92

9.9.96

Kustore Area

36.

B.K. Banerjee

B.Sc.(Hons)

7.12.92

9.9.96

-do-

37.

D.K. Gupta

B.A.

3.5.94

9.9.96

Bhalgora

38.

Sailendra Nath

Dutta

I.Com

18.5.93

9.9.96

Bastacolla Area

39.

Muneshwar Prasad

B.A.

19.6.93

9.9.96

Kustore Area

40.

Soumendar

I.Sc.

30.6.94

9.9.96

Lodna Area

9414

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

Bhattacharjee

41.

L.H.K.N.Sahdeo

B.Sc.

1993

9.9.96

EDP Koyla

Bhawan

42.

Suresh Kr. Mahato

B.Com

5.4.91

9.9.96

Bhalgora

43.

J.P. Das

I.A.

17.1.93

9.9.96

Barora Area

44.

Md. Arman Ansari

B.Sc., P.G. Dip. in

Com. Programme

26.6.94

9.9.96

CS Jealgora

45.

Arun Kumar

B.A.(Hons)

2.11.92

9.9.96

Barora Area

46.

Nelesh Kumar

I.Sc.

8.1.94

9.9.96

Bastacolla Area

47.

Sandip Banerjee

B.A.

9.12.91

9.9.96

-do-

48.

Kallol Bhattacharjee

I.Sc.

17.8.89

9.9.96

-do-

49.

Hridyanand Yadav

Matric

12.4.93

9.9.96

Chandodih

Colliery

50.

Lakhandeb Rawani

Matric

—

9.9.96

Barora Area

51.

Sri S.K. Singh

I.A.

21.9.93

9.9.96

CS Kusunda

52.

Krishana Kishore

Mahato

I.A.

—

9.9.96

Bhalgora

53.

G.C.Napit

I.A.

7.7.92

9.9.96

Barora Area

54.

Narayan Kumhar

I.A.

8.8.90

9.9.96

-do-

55.

Sunil Kumar

I.Sc.

4.11.91

9.9.96

Loyabad

56.

Rajkishore Sahu

B.A.(Hons)

3.6.91

18.6.96

RS Mohuda

57.

Tapan Kr.

Chakraborty

B.Sc.

13.9.91

18.6.96

-do-

58.

Kedar Singh

B.Sc.

18.5.93

18.6.97

-do-

59.

Raj Kishore Mishra

B.Sc.

6.3.93

18.6.97

PB Area

60.

Ram Krishna Yadav

MA LLB

15.1.87

18.6.97

-do-

61.

Sachida Nand

Pandey

BA(Hons)

15.9.94

18.6.97

CCWO

Saraidhella

62.

Someshwar

Chattoraj

B.Com

17.12.92

18.6.97

Sijua Area

63.

Mukund Ram

B.A. LLB Pt.I

27.3.93

18.6.97

-do-

64.

Biplab Sen

B.Sc.

16.2.93

18.6.97

RS Katras

65.

Nandlal Mistry

B.Com(Hons)

19.6.92

18.6.97

Sijua Area

66.

Gyanendra Pratap

Singh

MA(Soci)

31.1.94

18.6.97

-do-

67.

Syed Md. Akram

B.A.(Hons)& Dip in

software Technology

12.7.93

18.6.97

RS Lodna

68.

Pradip Kr.Ghosh

B.Com

21.9.94

18.6.97

Bastacolla Area

69.

Ram Kunwer

Ram(SC)

MA(Soci)

27.5.93

18.6.97

Sijua Area

70.

Ram Yatan

MA LLB

6.3.93

18.6.97

Moonidih Area

WJ

71.

Bankim Murmu(ST)

B.Com

21.9.91

18.6.97

Sijua Area

72.

Inderdeo

Paswan(SC)

MA(Hindi)

28.4.93

18.6.97

-do-

73.

Bharat Kabidas(SC)

B.A.(Hons)

22.7.94

18.6.97

RS Sinidih

74.

Anil Kr. Mahato

B.Com.

13.7.94

18.6.97

Sudamdih

75.

Ram Sewak Bind

B.A.

3.3.90

18.6.97

RS Block-II Area

76.

Gulam Haider

B.A.

1.8.92

18.6.97

Sijua Area

77.

Madan Mohan

Mahato

B.Sc.

12.0.91

18.6.97

Sudamdih

78.

Rabindra Prasad

B.Com(Hon)

20.7.94

18.6.97

Sijua Area

79.

Sri Sada Nand Pd.

Singh

B.A.

12.2.94

18.6.97

RS Katras

80.

Syid Md. Mazhar

Alam

B.Com

27.2.93

18.6.97

Moonidih WJ

Area

81.

Mahendra

Paswan(SC)

Madayama

18.6.90

18.6.97

P.B.Area

82.

S.K. Bhattacharjee

B.A.

8.6.93

18.6.97

Moonidih WJ

Area

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9415

83.

Ramanand Ram

B.A.

4.11.92

18.6.97

RS Block-II Area

84.

Kartik Mistry

B.A. (Hons)

31.12.92

18.6.97

-do-

85.

Manoj Kr. Singh

B.Com

2.9.93

18.6.97

Sijua Area

86.

Uttam Kr. Seal

B.A.

14.1.90

18.6.97

Block-II Area

87.

Manoj Kumar

B.Com(Hons)

21.9.91

18.6.97

RS Lodna

88.

Amitav Dey

B.Com.

—

18.6.97

Bhalgora

89.

Sunil Prasad

B.A.

1.12.89

18.6.97

RS Katras

90.

Swapan Kr. Mondal

(SC)

B.Sc.

12.12.89

18.6.97

Sijua Area

91.

Satyendra Kumar

B.A.(Hons)

26.2.90

18.6.97

Kusunda Area

92.

Awadh Kishore Jha

B.A.

26.2.90

18.6.97

RS Sinidih

93.

Jagan Shaw

B.A.

23.7.94

18.6.97

RS Katras

94.

Baldeo Prasad

B.Com

20.7.94

18.6.97

-do-

95.

Tarun Sinha

B.A.

9.4.90

18.6.97

PB Area

96.

Rajendra Pd.

Pandey

M.A.

13.9.93

18.6.97

PB Area

97.

Tarak Nath

Chakraborty

B.Com

24.2.93

18.6.97

-do-

98.

Surya Deo

Choudhury(SC)

B.Com(Hons)

15.11.93

18.6.97

-do-

99.

Shiv Shankar

Pandey

B.Com

12.2.94

18.6.97

-do-

100.

Tarun Kr.

Mukherjee

B.Sc.

23.9.94

18.6.97

RS Bhowra

101.

Kaleshwar Yadav

B.Sc.(Hons) DCO

13.10.92

18.6.97

Moonidih WJA

102.

Ramesh Chand

Rawani

B.Com

22.9.92

18.6.97

RS Bastacolla

103.

Krit Kamal Singh

B.Com

24.10.94

18.6.97

Kusunda Area

104.

Rajesh Kr. Sahay

B.Sc.

19.1.95

18.6.97

EDP Deptt. Koyla

Bhawan

105.

Dipu Kumar

B.A. Pt. II

16.11.93

18.6.97

RS Block-II Area

106.

Nilanjan Das

B.Sc.(Hons)

18.8.94

18.6.97

Sudamdih

107.

Abhijit Das

I.Sc.

30.12.94

18.6.97

RS Katras

108.

Manoj Kr. Singh

M.Com.

13.12.94

18.6.97

RS Lodna

109.

Smt. Lila Das

Matric

31.12.93

18.6.97

Kustore Area

110.

Smt. Sangita Devi

I.A.

7.9.94

18.6.97

R.S. Lodna Area

111.

Sri Ashok Kr.

Srivastav

Matric

1.3.94

18.6.97

RS Barora

112.

Malay Kr.

Chakraborty

—

—

18.6.97

RS Mohuda

113.

Manoj Kr. Shaw

B.Com(Hon)

5.1.95

18.6.97

EDP Koyla

Bhawan

114.

Devendra Nath

Singh

M.A.

2.12.94

18.6.97

Bhalgora Area

115.

Subrata Banerjee

B.Sc.

17.2.96

18.6.97

CV Area

116.

Nand Lal Pandey

—

—

18.6.97

RS Bastacolla

Area

117.

Kaushik Chatterjee

I.A. Dip in Comp.

18.8.94

18.6.97

CS Jealgora.

118.

P.P.Choudhury

B.Com.

30.9.94

18.6.97

-do-

119.

Mahadeo Yadav

—

—

18.6.97

Sudamdih

120.

Bipin Kumar

I.Com

8.2.93

18.6.97

Barora Area

121.

Agam Kr. Singh

B.Com(Hons)

10.9.93

18.6.97

Sijua Area

122.

Binod Kr. Pandey

—

—

18.6.97

RS Block-II Area

123.

Ajit Kr. Manjhi

H.S.

23.11.89

18.6.97

-do-

124.

Nakul Mahato

—

—

18.6.97

RS Block-II Area

125.

Aditya Kr. Pandey

Madhyamik(WB)

18.11.87

18.6.97

-do-

126.

Parma Nand Rai

Matric

18.12.87

18.6.97

RS Block-II Area.

127.

Pancham Kr. Gope

B.A.

1.11.94

18.6.97

RS Katras

128.

Kartik Prasad

Mahato

Matric

28.12.94

18.6.97

-do-

9416

THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948

[PART II—SEC. 3(ii)]

129.

Hemant Kr.

Choudhury

BA(Hons)

4.7.95

31.12.98

Bhewra Area

130.

Amit Kr. Banerjee

B.Sc.

20.5.95

31.12.98

CV Area

131.

Ambika Prasad

Singh

B.Sc.

24.8.95

31.12.98

Kusunda Area.

132.

Ritesh Kumar

I.Sc.

28.1.97

31.12.98

Ghanoodih Colly.

133.

Gopal Krishna

Pathak

I.Sc.

29.11.94

31.12.98

Kusunda Area

134.

Kalol Chatterjee

B.Sc.(Hon)

17.4.95

31.12.98

Mohuda Store

135.

Jitendra Nath

Sharma

MA(LSW)

18.1.96

31.12.98

Lodna Area

136.

Sri Haripado

Rewani

B.Com

10.1.96

31.12.98

R.S. Lodna

137.

Md. Aurangjee

B.Com

5.5.95

31.12.98

PB. Area

138.

Miss Uma Rani

Dutta

B.A

30.8.95

31.12.98

Bhowra Area

139.

Sri Hari Bahadur

M.Com

19.12.95

31.12.98

Sijua Area

140.

Dhananjay Rai

B.Com

22.3.95

31.12.98

Moonidih Area

W.J

141.

Smt. Meeta Sahai

M.A.

8.12.95

31.12.98

Sijua Area

142.

Sri Rana Pratap

Mukherjee

B.Com.

18.10.94

31.12.98

Kusunda Area

143.

Surya Mohan Jha

B.Com

25.1.96

31.12.98

RS Lodna

144.

Azmat Alam

I.A.

24.5.95

31.12.98

Bastacolla Area.

145.

Shanti Moy Das

B.Sc.

11.2.95

31.12.98

C.V. Area

146.

Bidya Nand Singh

B.A.(Hons)

20.7.95

31.12.98

Moonidih WJA

147.

Rama Nand Singh

B.A.

21.6.95

31.12.98

WJ Area

Moonidih

148.

Sudhir Kr. Singh

B.Sc.

14.1.93

31.12.98

CV Area

149.

Md. Jamal Uddin

Khan

B.Com (Hons)

4.1.96

31.12.98

RS Bhowra

150.

Sri Chanchal

Chakraborty

Matric Dip in Com.

25.5.95

31.12.98

RS Lodna

151.

Pradip Kr.

Chattopadhyay

B.A

22.5.95

31.12.98

Bhowra Area

152.

Ramashis Yadav

M.A.

21.7.95

31.12.98

RS Block-II

153.

Santosh Kumar

B.A. (Hons)

5.6.96

31.12.98

CV Area.

154.

Smt. Sulekha

Sengupta

B.A

3.5.94

31.12.98

RS Loyabad

155.

Sri Jaishankar

Prasad

B.Sc.

11.4.95

31.12.98

PB. Area

156.

Amresh Mourya

B.A.

9.5.95

31.12.98

WJ Area

Moonidih

157.

Miss Manisha Barat

B.A. (Hons)

18.5.95

31.12.98

Kustore Area

158.

Sri Anit Kr. Sinha

B.Com .

17.1.90

29.6.2000

WJ Area

Moonidih.

159.

Indra Raj(SC)

BA/B.Ed.

16.3.94

29.6.2000

Katras Area

160.

B.C. Yadav

BA/LLB

1.9.93

29.6.2000

-do-

2. On receiving order no. L-20012/41/2009 -IR(CM-I) dated 29/05/2009 Government of India,

Ministry of Labour, New Delhi for adjudication of the dispute, Reference case no. 35 of 2009 was

registered on 22.06.2009 and thereafter the notices were sent to the parties with a direction to appear

and submit their written statements along with relevant documents and witnesses in support of their

claims.

3. After service of notice, both parties appeared previously and filed their authorities, W/S and

subsequently rejoinder. It further appears that after 20.04.2017 this case was put up after a long gap

on 09.03.2026 and registered notices were issued to both the parties but workman/union failed to

appear. However Sri N. Nath, O.S. Legal H.Q. for the management appeared and on 09.07.2026 he

filed written notes of argument but workman/union remained absent in spite of regd. notice sent.

[भाग II—खण् ड 3(ii)]

भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948

9417

4. On perusal of the entire case record it transpires that workman/union never appeared before this

Tribunal since 16.11.2016 which shows that he has lost his interest in this case and therefore, for the

ends of justice, this case deserves to be dismissed for non prosecution.

5. Hence,

ORDERED

that this case is hereby dismissed for non prosecution and a ―No Dispute Award‖ be drawn up

in respect of the above reference case. Let the copies of Award in duplicate be sent to the Ministry of

Labour & Employment, Government of India, New Delhi for information and notification.

SACHINDRA KUMAR PANDEY, Presiding Officer

Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064

and Published by the Controller of Publications, Delhi-110054.

KUMER

CHAND

MEENA

Digitally signed

by KUMER

CHAND MEENA

Date: 2026.09.16

09:51:12 +05'30'