LexTAMIL NADU MEDICAL SERVICES CORPORATION LIMITED versus TAMIL NADU MEDICAL SERVICES CORPORATION EMPLOYEES WELFARE UNION & ANR.
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[2024] 5 S.C.R. 596 : 2024 INSC 446 Tamil Nadu Medical Services Corporation Limited v. Tamil Nadu Medical Services Corporation Employees Welfare Union & Anr. (Civil Appeal No. 6511 of 2024) 17 May 2024 [Sanjay Karol* and Prasanna Bhalachandra Varale, JJ.] Issue for Consideration Whether the Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981 would apply to the parties; whether the Corporation can be termed as an industrial establishment as per the provisions of the Tamil Nadu Shops and Establishments Act, 1947; and whether the members of the Union would qualify as workmen and thus, would be eligible for permanent status u/s. 3 of the Act; and whether the suggestion to institute an ‘Industrial Disputes Claim’ questioning non-employment was sustainable, given that the Inspector of Labour had already passed orders in that regard. Headnotes† Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981 – s. 2(3), 7 – Tamil Nadu Shops and Establishments Act, 1947 – ss. 2(3), 2(6) – Employees of Government Corporation sought regularisation – Inspector of labour conferred permanent status to the workmen – High Court upheld the same and directed to provide employment to the employees – Cross appeals – Issue as regards, applicability of the 1981 Act to the parties – Corporation, if could be termed as an industrial establishment as per the 1947 Act – Members of the Union, if would qualify as workmen and thus, would be eligible for permanent status u/s. 3 of the Act – High Court on remand, if could have ignored the order of the Inspector of Labour and suggested to institute an ‘Industrial Disputes Claim’ questioning non-employment: Held: Activities conducted by the Corporation fall under those mentioned u/s. 2(3) of the 1947 Act – Construction work, which * Author [2024] 5 S.C.R. 597 Tamil Nadu Medical Services Corporation Limited v. Tamil Nadu Medical Services Corporation Employees Welfare Union & Anr. the Corporation, by its own admission, carries out, is also for non- governmental bodies such as firms, companies, and individuals – Language of s. 7 of the 1981 Act implies that this Act shall not apply to those workmen who are engaged in the construction of buildings and the like or other construction work be it structural, mechanical, or electrical and thus, the establishments and its workmen engaged exclusively in the work of construction, shall be exempted – However, this would not allow the Corporation to wash its hands off the responsibilities or obligations under the Act, since the construction to be undertaken by the Corporation, is only one of the many activities to be undertaken by it – To take all the workers out of the purview of the Act, especially, when the said workers were not the ones undertaking construction, unwarranted – Employee having uninterruptedly continued in service for 480 days or more for 24 months, having been met, the Act would apply to the parties – Furthermore, the scope of remand was limited – Since the High Court concluded that the Act would apply, no reason for it to disturb the finding of the Inspector of Labour – It ought to have simply ordered that the order of Labour Inspector which concluded that members of Union be given permanent employment, be complied with. [Paras 21-25, 27, 28] Case Law Cited State of Karnataka v. Uma Devi [2006] 3 SCR 953 : (2006) 4 SCC 1; Maharashtra State Road Transport Corporation v. Casteribe Rajya Parivahan Karmachari Sanghathana [2009] 13 SCR 937 : (2009) 8 SCC 556; U.P. Power Corporation Limited & Anr. v. Bijli Mazdoor Sangh & Ors. [2007] 5 SCR 256 : (2007) 5 SCC 755; ONGC Limited v. Petroleum Coal Labour Union & Ors. [2015] 5 SCR 474 : (2015) 6 SCC 494; Ajay Pal Singh v. Haryana Warehousing Corporation (2015) 6 SCC 321; Ranbir Singh v. S.K. Roy, Chairman, Life Insurance Corporation of India & Anr. [2022] 10 SCR 986 : (2022) SCC OnLine SC 521 – referred to. List of Acts Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act, 1981; Companies Act, 1956; Tamil Nadu Shops and Establishments Act, 1947; Industrial Disputes Act, 1947. 598 [2024] 5 S.C.R. Digital Supreme Court Reports List of Keywords Industrial Disputes Claim; Inspector of Labour; Industrial establishment; Members of the Union; Workmen; Permanent status to workmen; Regularisation; Commercial element; Construction work; Non-governmen
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