MAHARASHTRA STATE ROAD TRANSPORT CORPORATION Vs. PREMLAL
LAWS(SC)-2007-2-33
SUPREME COURT OF INDIA
Decided on February 27,2007

MAHARASHTRA STATE ROAD TRANSPORT CORPORATION Appellant
VERSUS
PREMLAL Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) A short question which arises for determination in these civil appeals filed by the employer is : whether Clause 49 of 1956 Settlement stood replaced by Clause 19 of 1985 Settlement and by Resolution No.8856 dated 31.8.78 passed by the appellant-Corporation.
(3.) Appellant-Corporation is a State Road Transport Undertaking incorporated under Road Transport Corporation Act, 1950. Apart from State Transport Employees Service Regulations framed under Section 45 of Road Transport Corporation Act, 1950, the service conditions of the employees are also regulated by Industrial Settlement signed between the Corporation and various trade Unions representing employees. Several demands were raised in 1956 on behalf of the workmen. One such demand was under Item No.49 of the Demand Notice for abolition of Daily Wage System. It appears that large number of workmen were continued for several years in the Corporation on ad-hoc basis. They were paid daily-wages. Therefore, there were unwarranted interruptions and breaks in their service which ultimately resulted in Unions raising the above demand. Under 1956 Settlement all employees working for 180 days including weekly offs and other holidays continuously, were to be brought on the time scale of pay and they were to be given all the benefits available to the time scale workers. This Settlement was arrived at on 25.4.56. Even after 1956 various settlements were arrived at between the Corporation and its employees. According to the appellant, Clause 49 of 1956 Settlement was cancelled and revised in the Joint Committee Meeting held on 15.4.1978. According to the Corporation, the Joint Committee was empowered to do so by virtue of Clause 9 of 1968 Settlement. According to the appellant-Corporation, in any event the decision of the Joint Committee dated 15.4.78 stood approved by Resolution No.8856 of the Corporation dated 31.8.1978 under which persons in employment of daily-wages as on 31.7.78 and those who were to be employed on daily- wages thereafter were to be appointed on temporary basis in ephemeral vacancies in time scale of pay as from 31.7.78 or thereafter provided they completed aggregate service of 180 days in any one financial year commencing from 1.4.73 onwards. According to the appellant- Corporation, in 1985 a new settlement was arrived at under which absorption of daily rated workmen after completion of 180 days continuous service vide Clause 19 stood included. According to the appellant- Corporation, Clause 49 of 1956 Settlement stood superseded by Clause 19 of 1985 Settlement. On behalf of the workmen the argument put forward was that Clause 49 of 1956 Settlement and Clause 19 of 1985 Settlement operated in different fields and, therefore, there was no question of Clause 49 of 1956 being superseded by Clause 19 of 1985 Settlement. It was also submitted that Joint Committee was not authorized to cancel and revise Clause 49 of 1956 Settlement. It was submitted that Joint Committee was constituted to implement Clause 49 of 1956 Settlement and not to cancel or revise the said clause and, therefore, the Corporation was not entitled to replace Clause 49 of 1956 by Clause 19 of 1985 Settlement.;


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