U.P. STATE ELECTRICITY BOARD versus SHRI SHIV MOHAN SINGH AND ANR.

Citation: [2004] SUPP. 4 S.C.R. 953 · Decided: 01-10-2004 · Supreme Court of India · Bench: N. SANTOSH HEGDE · Disposal: Appeal(s) allowed

Judgment (excerpt)

--
U.P. STATE ELECTRICITY BOARD 
v. 
SHRI SHIV MOHAN SINGH AND ANR. 
OCTOBER 1, 2004 
[N. SANTOSH HEDGE, S.B. SINHA AND A.K. MATHUR, JJ.] 
Apprentices Act, 1961: 
Sections 18, 2(r), 2(aa), 2(aaa), 6, 7, 20, 21 and 22-Contract of 
apprenticeship-Appointment of, apprentice trainee-Nature and character 
of-Held: Apprentice trainee enters into contract to serve for fixed period 
on fixed stipend-Apprentice is a trainee and his position will not change 
to workman under employer where he is undergoing apprenticeship training-
Obligation of employer-Held: Employer is only under an obligation to 
impart training and pay stipend and not to accept the apprentice as his 
employee and confer the status of workman-There is no relationship of 
master and servant or employer and employee. 
Sections 4(4)--Contract of apprenticeship-Non-registration of, with 
Apprenticeship Advisor by employer-Effect of-Held: Registration of contract 
A 
B 
c 
D 
with Apprenticeship Advisor is purely an administrative act-Non-registration 
E 
of contract will not render the contract invalid-Status of apprentice does 
not change to that of a workman irrespective of the contract being registered 
or not. 
Section 4(4)--Contract of Apprenticeship shall be sent by employer to 
Apprenticeship Adviser for registration-Expression 'shall '-Inte1pretation 
F 
of, mandatory or directory-Held: Interpretation of expression 'shall' in any 
enactment depends upon the context in which it appears and its effect 
thereof-From social legislation point of view expression 'shall' in section 
4(4) should be construed as directory because it will be for the benefit of 
apprentice-Treating it as mandatory will be more counter productive to the 
G 
interest of apprentices-Also no penalty is provided for breach of non-
registration-Thus, expression 'shall' cannot be construed to be mandatory 
and is directory-Interpretation of Statutes. 
Object of the Ac1-Held: Is to recruit apprentices and train them for 
developing a strong industrial base. 
H 
953 
954 
SUPREME COURT REPORTS [2004) SUPP. 4 S.C.R. 
A 
Industrial Disputes Act, I947 and UP. Industrial Disputes Act, 1947-
B 
c 
D 
E 
F 
G 
Application of, to Apprentices Act, I 96 I-Held: Expression 'workmen' under 
Section 2(z) and 2(s) includes apprentice but is not applicable to apprentice 
appointed under Apprentices Act, 196 I-Reading definition of apprentice in 
sections ~(aa) and 2(r) with section I8, it is clear that Apprentice Act which 
is a special Act, does not cover workman and labour laws are not applicable 
to apprentice-As such application of Labour Laws is excluded and labour 
Court/Industrial Tribunal will not have jurisdiction to entertain any dispute 
arising therefrom-Disputes are to be resolved under Section 20 of the 
Apprentice Act-Sections 2(aa), 2(r), I8 and 20-Industrial Disputes Act, 
I947, section 2(s)-UP. Industrial Disputes Act, I947, section 2(z). 
The question which arose for consideration in these appeals filed 
by the apprentices and the employers is with regard to the scope of 
Apprentices Act, 1961 vis-a-vis the U.P. Industrial Disputes Act, 1947, 
the Industrial Disputes Act, 1947 and the Indian Boilers Act, 1923. 
Incumbents, in these appeals were appointed as apprentice trainees 
in the designated trade except for few who were appointed otherwise. 
The contract of apprenticeship was drawn for the incumbents except 
few of them. In majority of the cases the contract was not registered 
with the Apprenticeship Adviser and on completion of training their 
services were terminated. Respondents raised industrial dispute claiming 
status of worker under the Apprenticeship Act, 1961, benefit of section 
25-F of the Industrial Disputes Act, 1947 or under section 6N of the U.P. 
-- Industrial Disputes Act, 1947. 
U.P. State Electricity Board contended that if an incumbent is 
appointed as an apprentice trainee and contract Of apprenticeship has 
not been registered, incumbent does not cease to be an apprentice and 
his position does noi become that of a workman. 
Apprentice trainees contended that the word 'shall' appearing in 
sub-section 4 of section 4 of the 1961 Act means that the registration of 
the contract is mandatory and if the contract of apprenticeship under 
the section is not registered with the Apprenticeship Adviser, contract 
would cease and the incumbent becomes workman; and that the 1961 
Act is a welfare legislation, and it should be construed liberally for the 
H 
benefit of

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