MOHAN MAHTO versus M/S. CENTRAL COAL FIELD LTD. & ORS.

Citation: [2007] 9 S.C.R. 1142 · Decided: 18-09-2007 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Appeal(s) allowed

Judgment (excerpt)

A 
MOHANMAHTO 
v. 
M/S. CENTRAL COAL FIELD LTD. & ORS. 
SEPTEMBER 18, 2007 
B 
[S.B. SINHA AND HARJJT SINGH BEDI, JJ.) 
Labour Law: 
Compassionate appointment-Workman died in harness-National Coal 
C Wage Agreement, V-Providingfor compassionate appointment to dependent 
of workman-Application of son of deceased workman filed under sub-clause 
(iii) of Clause 9.5.0 of NCWA,V-Rejected by Management-HELD: A 
'settlement' within the meaning of s.I8(3) of the Industrial Disputes Act is 
binding on both the parties unless the same is modified or substituted by 
D another settlement-No period of limitation was provided in settlement-
Period of limitation provided in Circular was not statutory nor is it imperative 
in character-On facts, action of the Company declining appointment on 
compassionate ground to applicant being contrary to 'settlement' is neither 
fair nor reasonable nor bona fide-Company directed to offer appointment 
to the applicant-Industrial Disputes Act, I947-ss. I8(3)-Constitution of 
E India-Article I 2. 
Constitution of India, I950: 
Article I 2-'State '-HELD: A public sector undertaking which is 'state' 
within the meaning of Article 12 is expected not only to act fairly but also 
F reasonably and bona fide-Administrative Law-'State' authorities. 
A workman in the service of the respondent, a Public Sector 
Undertaking, died in harness on 23.2.1997. His son, the appellant, who at 
that time was minor but above 15 years of age, filed an application for 
G appointment on compassionate ground on 25.10.1997. The terms and 
conditions of service of the workman of the respondent-Company were 
governed, inter alia, by a 'settlement' known as National Coal Wage 
Agreement, V (NSWA,V). Sub-clause (iii) of clause 9.5.0 Qfthe said settlement 
provided, inter alia, that a minor male dependent, if he be 15 years of age, of 
H 
a deceased be provided employment on his attaining 18 years of age and 
1142 
'f 
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MOHAN MAHTO v. CENTRAL COAL FIELD LTD. 
1143 
meanwhile his name be kept on the live roster. The application of the appellant A 
was rejected by the respondent-Company on the ground that he was a minor 
at that time. He later filed another application on attaining majority on 
26.9.1999. He was again declined the appointment statingJhat he was under 
age and also his name was not kept in the live roster. On the basis of the 
Circular dated 12.12.1995, providing for six months' limitation for filing the B 
application for appointment on compassionate ground from the date of death 
of the deceased-workman, the respondent held that there was considerable 
delay in applying for appointment The writ petition filed by the applicant was 
allowed by the single Judge of the High Court. However, the Division Bench 
of the High Court allowed the writ appeal filed by the Company. The Division 
Bench relying on the decision in K.P. Viswanath 's case* held that the Court C 
had no jurisdiction to extend the period of limitation. Aggrieved, the writ 
petitioner filed the instant appeal. 
Allowing the appeal, the Court 
HELD: 1.1. A settlement within the meaning of sub-section (3) of Section D 
18 of the Industrial Disputes Act, 1947 is binding on both the parties and 
continues to remain in force unless the same is altered, modified or 
substituted by another settlement. No period of limitation was provided in the 
settlement. The respondent might have jurisdiction to issue the circular 
prescribing a period of limitation for filing application for grant of appointment · E 
on compassionate ground, but, such circular was not only required to be 
strictly complied with but also was required to be read keeping in view the 
settlement entered into by and between the parties. (Para 10] (1148-F, G) 
1.2. The right to obtain appointment on compassionate grounds, in the 
instant case, emanates from the settlement i.e. NCWA,V. The expanding F 
definition of workman as contained in Section 2(s) of the Industrial Disputes 
Act, 1947 would confer a right upon the appellant to obtain appointment on 
compassionate ground, subject, of course, to compliance of the conditions 
precedent contained therein. The case for grant of compassionate appointment 
of a minor was undisputedly required to be considered in terms of sub-clause 
(iii) of Clause 9.5.0 of the N.C.W.A.V. In terms of the said provision, the name G 
of the appellant was to be kept on a live roster. He was to remain on the live 
roster till he attained the age of 18 ye

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