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
8607
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
8618
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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
8626
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
8641
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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[PART II—SEC. 3(ii)]
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
8646
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;
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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.
8678
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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
8679
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
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
8681
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
8682
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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
8691
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
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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)]
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8697
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.
8716
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
[भाग II— ण् ड 3(ii)]
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
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
8724
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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
8730
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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.
8732
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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
8738
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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.
8740
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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,
8744
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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[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., 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
8753
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
8757
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
8774
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
8787
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
8795
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
8798
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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
8801
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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[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.
8818
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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:
8820
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
8822
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
8824
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
8830
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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
8832
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:-
8834
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
8875
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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
8887
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.
8888
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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.
8890
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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.
8892
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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)]
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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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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?
8920
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:-
8928
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.
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
8957
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
8961
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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
8964
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, 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)]
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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)]
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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)]
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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)]
भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948
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
8973
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)]
भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948
8977
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
8980
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
8982
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)]
भारत का रािृत्र : अगस्ट् त 15, 2026/ श्रावण 24, 1948
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
[भाग II— ण् ड 3(ii)]
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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
8999
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
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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)]
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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
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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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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,
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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
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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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9063
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
9066
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
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
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
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
9078
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.
9084
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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.
9088
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
[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)]
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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
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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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9125
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
9127
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
9129
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)]
भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948
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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9133
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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9135
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)]
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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
9139
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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
9146
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
9148
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)]
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9157
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)]
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9159
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.
9166
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.
[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
9168
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
9170
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."
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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)]
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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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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)]
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9201
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
9203
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
9207
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.
9228
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.
9260
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
9262
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.
9264
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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)]
भारत का राजपत्र : अगस् त 15, 2026/ श्रावण 24, 1948
9267
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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
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fufnZ’V vkS|ksfxd fookn esa
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[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)]
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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)]
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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
9290
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
[भाग II—खण् ड 3(ii)]
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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
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9303
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
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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
9316
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.
9320
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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.
9322
THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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
9331
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."
9336
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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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9355
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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9357
“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)]
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9359
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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THE GAZETTE OF INDIA : AUGUST 15, 2026/ SHRAVAN 24, 1948
[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]
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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'