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MAHARASHTRA STATE COOPERATIVE COTTAN GROWERS' MARKETING FEDERATION LTD. AND ANR. versus MAHARASHTRA STATE COOPERATIVE COTTON GROWERS' MARKETING FEDERATION EMPLOYEES UNION AND ANR.

Citation: [1994] 1 S.C.R. 289 · Decided: 24-01-1994 · Supreme Court of India · Bench: P.B. SAWANT

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Judgment (excerpt)

MAHARASHTRA STATE COOPERATIVE COTTON GROWERS' 
A 
MARKETING FEDERATION LTD. AND ANR. 
v. 
MAHARASHTRA STATE COOPERATIVE COTTON GROWERS' 
MARKETING FEDERATION EMPLOYEES UNION AND ANR. 
JANUARY 24, 1994 
[P.B. SAWANT AND R.M. SAHAI, JJ.] 
B 
Service and Labour Law: Maharashtra State Cooperative Cotton 
Growers' Marketing Federation-Cotton Monopoly Procurement C 
Scheme--Perennial and seasonal employees engaged by Federation-Dispute 
regarding permanency of employees-Reference to Industrial 
Tribunal-Award, known as Patankar Award, directing that those employees 
who had put in 240 days of continuous service should be treated as permanent 
employees-Temporary perennial employees made permanent as per D 
Award-Application by Union of seasonal employees after 6 years of Award, 
claiming permanency of seasonal employees on the basis of Patankar 
Award-Held, Patankar Award does not refer to seasonal employees-In-
dustrial Tribunal was not called upon to adjudicate dispute with regard to 
permanency of seasonal employees nor the Award had directed seasonal 
employees to be made permanent. 
E 
Seasonal employment and seasonal employees-Difference be-
tween-Explained. 
Model Standing Order 4-B-Held, does not apply to seasonal 
employees. 
F 
The Maharashtra Cooperative Marketing Federation appointed by 
the State Government as its chief agent to implement the Cotton. Monopoly 
Procurement Scheme, employee seasonal employees for procurement and 
processing of cotton as the activities extended over 4-6 months in a year. G 
For the purpose of marketing and maintenance of accounts which ac-
tivities continued throughout the year the Federation engaged perennial 
employees. Seasonal employees ~umbered twice the number of perennial 
employees. 
In the year 1973 an industrial dispute arose between the Marketing H 
289 
290 
SUPREME COURT REPORTS 
[1994) 1 S.C.R. 
A 
Federation and its employees. The Government, by an order dated 30th 
May, 1973, referred to the Industrial Tribunal the dispute which included 
the demand of the employees that the workmen who had put in three 
months aggregate service for 78 or more working days in aggregate, should 
be confirmed. The Tribunal by its award dated 31st August, 1984, known 
B as the Patankar Award, held that the employees who had put in 240 days 
of continuous service would be treated as permanent employees. Conse-
quently, the temporary perennial employees were made permanent but the 
seasonal employees continued as such without demur. 
Later the Marketing,Federation was replaced by the Maharashtra 
C State Cotton Growers Marketing Federation Ltd., appellant No. 1. The 
entire staff of the Marketing Federation including the seasonal staff 
engaged under the Cotton Scheme was taken over by the appellant-Federa-
tion on the terms and conditions applicable under the previous arrangeΒ· 
ment. 
D 
The respondent-Union of the seasonal employees, in 1990, filed a 
complaint under the Maharashtra Recognition of Trade Unions and P-
Prevention of Unfair Labour Practices Act, 1971, contending that the 
Patankar Award had directed the Marketing Federation to make per-
manent the seasonal employees who had completed 240 days of service and 
E 
since those seasonal employees who had worked for 240 days in 1982-83 
and 1983-84 cotton seasons were not made permanent there was unfair 
labour practice under Items 5, 6 and 9 of Schedule IV to the Act. The 
respondent-Union claimed to quash the termination of service of the said 
employees at the end of the season and to make them permanent from the 
p 
date they completed 240 days of continuous service in 1983-84 cotton 
season. The Industrial Court allowed the claim. It directed the appellants 
not to terminate the services of the seasonal employees with effect from 
30.4.1991), to absorb the said employees in compliance with the provisions 
of the Patankar Award and the Agreeml'nt dated 18.1.1984 and also by 
giving the benefit of the Government Letter dated 18.1.19&5. The appellant-
G Federation's writ petition and Letters Patent Appeal were dismissed by the 
High Court. Hence the appeal by Special Leave. 
1t was contended on behalf of the appellant-Federation that the 
assumption that the Patankar Award had directed to give permanency also 
H to the seasonal employees who had put in 240 days work in a year, was 
MARKETING FEDERATION LTD. v. EMPLOYEES UNION 
291 
. erroneous since the terms of reference, the statement of claim ef workmen A 
, --( 
and the

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