INDIAN BANKS ASSOCIATION versus WORKMEN OF SYNDICATE BANK AND ORS.

Citation: [2001] 1 S.C.R. 1011 · Decided: 13-02-2001 · Supreme Court of India · Bench: S. RAJENDRA BABU · Disposal: Dismissed

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Judgment (excerpt)

INDIAN BANKS ASSOCIATION 
A 
y 
v. 
WORKMEN OF SYNDICATE BANK AND ORS. 
FEBRUARY 13, 2001 
[S. RAJENDRA BABU AND S.N. VARIAVA, JJ.] 
B 
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Industrial Disputes Act, 1947-Sections 2(rr), 2(s)-Workman-Deposit 
Collectors engaged by Banks on contract and commission basis for collection 
of deposits -Held, they are workmen as there is master-sen,anl relationship--
Banking Regulation Act, 1949; Section I 0. 
c 
Respondents, who are Deposit Collectors and Commission Agents for 
Nationalised Banks, demanded pay scales, allowances and other service 
conditions which are available to regular clerical employees. The Government 
of India referred the dispute to the Industrial Tribunal under the provisions D 
of Industrial Dispute Act, 1947. The Tribunal held the respondents to be 
workmen under the Act and directed the banks to absorb them as regular 
staff and payment of full back wages, incentives, conveyance and gratuity. 
Petitioner-Association filed Writ Petitions before High Court, which partly 
t 
allowed the petitions by setting aside the directions of the Tribunal relating 
to absorption as regular staff while upholding the directions relating to E 
payment of back wages, gratuity etc. 
In appeal to this Court, the petitioner-Association contended that the 
Deposit Collectors should not be treated as workmen since their engagement 
were purely on contract basis for a specified period; that there is no master-
servant relationship; that there is no control or supervision on them by the F 
Banks; that they can undertake other employment also; that their attendance 
is not required daily in the banks; that there is no qualification or age limit 
for their appointment; that no disciplinary action could be taken against 
them; that the Deposit Collectors, who were paid commission, cannot be made 
a regular staff contrary to the provisions of the Banking Regulation Act; G 
that the Deposit Collection Schemes of the Banks, under which they are 
!'( 
employed, are un-remunerative and that the Banks are incurring a loss in 
running these Schemes; and that the Tribunal and the High Court had not 
gone into viability of the Schemes. 
The respondents contended that the work of the Deposit Collectors are H 
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SUPREME COURT REPORTS 
[200 I) I S.C.R. 
manual as they had to collect deposits by going to places of small depositors 
at latter's convenience and fill up various forms, accounts, registers and 
pass books every day; that they were also made to do other sundry works of 
a clerical nature; that the Banks had control over them on the work though 
various stipulations laid down by the Banks; that commission received for 
collecting deposits for the Banks are included under the definition of 'wages' 
under section 2(rr) of the Industrial Disputes Act; that the amount received 
by way of commission was wage linked to productivity; that commission could 
be paid to a person who was not in regular employment under the provisions 
of the Banking Regulation Act; that there is master-servant relationship 
between the Banks and them since there was control and supervision by the 
Banks on the work performed by them; that the Industrial Tribunal has 
power and jurisdiction to award a pay package dehors the statutory Act and 
Rules; and that they had been working for the banks as Deposit Collectors 
for a long period. 
Dismissing the appeals, the Court 
HELD : 1.1. The Tribunal correctly arrived at a conclusion that Deposit 
Collectors are 'workmen' under the provisions of the Industrial Disputes 
Act. The commission received by Deposit Collectors is a wage which is 
dependent on the productivity. This commission is paid for promoting the 
business of the various Banks. (1022-C-D( 
1.2. The Deposit Collectors are free to regulate their own hours of 
work, but that is because of the nature of the work itself. It would be impossible 
to fix working hours for such Deposit Collectors because they have to go to 
various depositors. This would have to be done at the convenience of the 
depositors and at such times as required by the depositors. If this is so, then 
to time can be fixed for such work. However, there is control inasmuch as the 
Deposit Collectors have to bring the collections and deposit the same in the 
banks by the very next day. They have to then fill in various forms, accounts, 
registers and pass books. They also have to do such other clerical work as 
the bank may direct. They are, therefore, acco

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