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HARYANA URBAN DEVELOPMENT AUTHORITY versus OM PAL

Citation: [2007] 4 S.C.R. 1091 · Decided: 10-04-2007 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Case Partly allowed

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Judgment (excerpt)

HARYANA URBAN DEVELOPMENT AUTHORITY 
A 
v. 
OM PAL 
APRIL IO, 2007 
[S.B. SINHA AND MARKANDEY KA TJU, JJ.] 
B 
Industrial Disputes Act, 1947: 
ss. 25F and 25G-Continuity of service-Daily wager worked in one 
establishment for 145 days-Thereafter he worked in another establishment C 
for 90 days-Two establishments distinct and separate having different cadre 
strength-Hence, period during which workman was working in one 
establishment would not enure to his benefit when he was recruited separately 
in another establishment particularly when he was not transferred-Labour 
laws. 
· 
s.JIA-Reinstatement with full back-wages-Power of labour court 
while granting-Held, despite wide discretionary power conferred upon the 
Labour Courts under s. 11 A, relief of reinstatement with full back-wages not 
D 
to be granted automatically only because it would be lawful to do so-lt 
would depend on the fact situation obtaining in each case-On facts, workman E 
worked for short period, therefore labour court committed illegality in 
directing reinstatement with full back wages. 
Respondent was appointed as a daily wager. He worked for period of 145 
days in sub Division No.2 for period of October 94 to Feb., 1995. He, however, 
worked in Sub-division No.3 for a period of90 days from March, 95 to July, F 
95. His services were terminated. He raised industrial dispute. 
The Industrial Tribunal directed his reinstatement and full back wages 
on the ground that the services rendered by respondent in both the Divisions 
should be counted for the purpose of s.25F r/w. s.25B of Industrial Disputes 
Act, 1947. Appellant employer unsuccessfully filed the writ petition. Hence G 
the present appeal. 
Partly allowing the appeal, the Court 
HELD: 1. The two Sub-Divisions constituted two different 
1091 
H 
1092 
'SUPREME COURT REPORTS 
[2007) 4 S.C.R. 
A establishments. Only because there is one Controlling Authority, the same 
by itself would not mean that the establishments were not separate. [Para 3) 
(1093-G; 1094-A) 
2. Respondent did not pro~uce before the Industrial Tribunal-cum-
Labour Court his offers of appointment If offers of appointment had been 
B issued in his favour by the two Sub-Divisions separately, the same ipso facto 
would lead to the conclusion that they were separate and distinct. If his 
appointment was only on the basis of entry in the muster roll(s), the 
designation of the authority who was authorized to appoint him as a daily-
wager would be the determinative factor. It is not the case of the respondent 
C that.he was appointed in both the establishments by the same authority. 
[Para 4) (1094-B) 
3. The Industrial Tribunal-cum-Labour Court unfortunately did not go 
into the said question at all. If both the establishments are treated to be one 
establishment, for the purpose of reckoning continuity of service within the 
D meaning of s.25B of the Act, as was held by the Tribunal, a person working 
at different point of time in different establishments of the statutory authority, 
would be entitled to claim reinstatement on the basis thereof. However, in that 
event, one establishment even may not know that the workman had worked in 
another establishment. In absence of such acknowledge, the authority 
retrenching the workman concerned would not be able to comply with the 
E statµtory provisions contained in s.25F of the Act. Thus, once· two 
establishments are held to be separate and distinct having different cadre 
strength of the workmen, if any, the period during which the workman was 
working in one establishment would not enure to his ben~fit when ·he was 
recruited separately in another establishment, particularly when he was not 
F transferred from one Sub-Division to the other. (Para 5) (1094-C-E) 
Union of India and Ors. v. Jummasha Diwan, [Z006) 8 SCC 544, 
referred to. 
4. Moreover, it is now also well-settled that despite a wide discretionary 
power conferred upto the Industrial Courts under s.llA of the 1947 Act, the 
G relief of reinstatement with full back-wages should n6t be granted 
automatically only because it would be lawful to do sc;>. Grant of relief would 
depend on the fact situation obtaining in each case. It will depend upon several 
factors; one of which would be as to whether the recruitment was effected in 
terms of.the statutory provisions operating in the field. (Para 7) (1095-B-C) 
H 
5. Respondent worked for a very short period. He only worked in 1994-
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