LexNATIONAL ALUMINIUM CO. LTD. & ORS. versus ANANTA KISHORE ROUT & ORS.
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A B [2014) 7 S.C.R. 406 NATIONAL ALUMINIUM CO. LTD. & ORS. v. ANANTA KISHORE ROUT & ORS. (Civil Appeal No. 5989 of 2008) MAY 8, 2014 [SURINDER SINGH NIJJAR AND A.K. SIKRI, JJ.] SERVICE LAW: c Employer-employee relationship - In order to determine the existence of employer-employee relationship, the determining factor is whether there is complete control and supervision by the employer - In the instant case, claim was made by the employees of the schools that they be treated 0 at par with the employees of appellant company as the schools were established by the appellant for the wards of its employees - Records proved that the schools have their own independent Managing Committees and the day to day control over the staff was with the Managing Committees - Mere fact that schools were set up by the appellant or they E had agreed to take care of financial deficits for the running of schools is not conclusive factor - Moreover, the employees of appellant were discharging altogether different kinds of duties - Therefore, principles of 'equal pay for equal work' is ·not attracted at all - There was no parity in the nature of work, F mode of appointment, experience, education qualification between the appellant employees and employees of schools - Moreover, the salaries and other perks which school employees were getting were better than their counter parts in Government Schools or aided/unaided recognized schools G in State of Orissa. The appellant is a public sector undertaking. In the year 1984, it established two schools for the benefit of the wards of its employees. The appellant provided H 406 NATIONAL ALUMINIUM CO. LTD. v. ANANTA 407 KISHORE ROUT & ORS. necessary infrastructure, such as land, building, furniture, A library and other assets. In/ 1985, the appellar)t entered into agreements with CCM Trust (CCMT) whereunder the appellant entrusted the management of the schools on a contract basis to CCMT. In terms of these agreements, the appellant agreed to pay Rs. 10,000 p.a. to CCMT as donation towards supervision charges for each school. These agreements also provided that the powers to establish, maintain and manage the schools would veEt B in the Managing Committee consisting of seven members. Out of these seven members, four were the c nominees of CCMT and three persons were nominated by the appellant. The Chairman, Vice-Chairman and Secretary-cum-correspondent were to be the nominees of CCMT. Apart from constructing the building and providing requisite furniture and fittings, the appellant 0 was .also to provide quarters at its own cost for teachers and staff members of the schools. The employees of the schools were treated at par with the appellant company employees so far as the medical, consumer co-operative, club and similar facilities were concerned. These agreements came to an end by efflux of time in the year E 1990. Thereafter, SVS agreed to manage both the schools. Accordingly agreement was entered into by the appellant with SVS. As per this agreement, the appellant agreed to pay to SVS certain amount towards its supervision charges. Even as per this Agreement, the Executive Authority of these two schools vested in the Managing Committee to be constituted separately for each of the schools. The employees of both schools filed writ petitions for claiming parity of pay with the employees of the appellant on the ground that real G control and supervision of the schools, including the staff was that of the appellant which has the final say in all vital matters. The High Court allowed the writ petitions. The instant appeals were filed challenging the decision of the High court. F H 408 SUPREME COURT REPORTS [2014] 7 S.C.R. A Allowing the appeals, the Court HELD: 1. No doubt, th~ school was established by the appellant. The appellant was providing necessary infrastructure and adequate financial support inasmuch 8 as deficit, after meeting the expenses from the tuition fee and other incomes received by the schools, was met by the appellant. The appellant has also placed staff quarters at the disposal of the schools which were allotted to the employees of the schools. Employees of the school were also accorded some other benefits like recreation club C facilities etc. [Para 21] [425-E-F] 2. In order to determine the existence of employer- employee relationship, the correct approach would be to consider as to wh
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