EMPLOYEES STATE INSURANCE CORPORATION Vs. TATA ENGINEERING AND LOCO MOTIVE COMPANY LIMITED
LAWS(SC)-1975-10-38
SUPREME COURT OF INDIA (FROM: PATNA)
Decided on October 08,1975

EMPLOYEES STATE INSURANCE CORPORATION Appellant
VERSUS
TATA ENGINEERING AND LOCOMOTIVE COMPANY LIMITED Respondents

JUDGEMENT

P. K. Goswami, J. - (1.) Is an apprentice an "employee" under the Employees' State Insurance Act, 1948 That is the question raised in this appeal by certificate under Article 133 (1) (a) and (b) of the Constitution from the judgment of the Patna High Court by which it refused to interfere with the order of the Industrial Tribunal passed under Section 73B of the Employees' State Insurance Act, 1948 (briefly the Act).
(2.) The respondent is a public limited company having its registered office at Bombay and its factory at Jamshedpur in the State of Bihar. The Act is applicable to the company's factory. Besides regular employees in the company, there are two sets of apprentices, namely, graduate apprentices for a period of two years and trade apprentices for the duration of three years. The graduate apprentices receive stipend of Rs. 250.00 per month in the first year and Rs. 300.00 per month during the second year. The trade apprentices receive stipend at the rate of Rupees 2.00 Rs.2.50 and Rs.3,00 per diem during the first, second and third year of the apprenticeship respectively. No other emoluments except the daily allowance or the monthly stipends are paid by the company to the apprentices. A deed of apprenticeship is signed by three parties, namely, the apprentice, his surety and the company and it contains the terms and conditions of apprenticeship. From the said terms and conditions which are common for both sets of apprentices except for the quantum of stipends and the duration, it appears that the company agree to provide the apprentice a combined theoretical and practical training in its factory for the respective period above mentioned and the apprentice also binds himself to serve the company for the purpose of the said training for the said period. Clause (7) of the agreement provides that if the apprentice successfully passes the examination after training he will be considered for absorption as skilled worker although the company is under no legal obligation to offer him employment. There are other conditions in the agreement with regard to matters of discipline during the apprenticeship.
(3.) Our attention was particularly drawn to the following provisions in the agreement: "12 In consideration of the company having agreed to give the Apprentice training in its works (Automobile Division) and to pay the apprentice the aforesaid daily allowance or stipend, the apprentice and the surety as the father or guardian of the apprentice jointly and severally covenant with the company as follows:- (i) That the apprentice will during the whole of the said term of three years of training diligently and faithfully serve the company and to the utmost power and skill attend to the company's business at such places and times as the company or its representatives shall direct. ********** (v) The apprentice shall immediately on the satisfactory completion of his training for the full term of three years serve the company for a period of five years, if so required by the company on such conditions as the company may offer having regard to his personal qualifications or acquirements and complying with the Rules and Regulations as are contained in the Works Standing Orders of the company." Without citing all the terms and conditions of the agreement, it is apparent that an apprentice is not in the regular employment of the company.;


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