Judgments

VERY VERY IMPORTANT FOR HR/IR & INSURANCE EXAMS

Supreme Court on Indian Drugs & Pharmaceuticals Ltd., v. Workman, Indian Drugs & Pharmaceuticals Ltd., [2007] 79 SCL 21 (SC)

Service matters – Regularisation of TEMPORARY appointees – whether there can be occasions when State or its instrumentalities employ person on temporary or daily wage basis in a CONTINGENCY as additional hands WITHOUT following required procedure, but this does not confer any right on such persons to continue in service or get regular pay; unless appointments are made by following rules, such appointees do not have any right to claim permanent absorption in establishment – HELD, YES;

Whether Courts must exercise judicial restraint, and not encroach into executive or legislative domain; orders for creation of posts, appointment on these posts, regularization, fixing pay scales, continuation in service, promotions, etc…are all executive or legislative functions, and it is highly improper for Judges to step into this sphere, except in a rare and exceptional case – HELD, YES;

Whether therefore, Court/Tribunal cannot direct regularization of temporary appointees de hors recruitment rules, nor can it direct continuation of service of a temporary employee whether called a casual, ad hoc or daily rate employee, or payment of regular salaries to them – HELD, YES.

Supreme Court on Fazilka Co-operative Sugar Mills v. Jatinder Kumar Gupta [2007] 79 SCL 26 (SC)

Section 11A of the Industrial Disputes Act, 1947 – Labour Courts, Tribunal and National Tribunal – Powers of, to give appropriate relief in case of discharge or dismissal of workmen – Respondent-workman, upon his dismissal in year 1992, raised an "industrial dispute" – Meanwhile, workman filed writ petition, wherein appellant was directed to pay subsistence allowance to respondent – As appellant-corporation did not pay said allowance, Labour Court refused to grant opportunity to appellant to lead evidence and directed workman to be reinstated in service with continuity of service along with 50 percent back wages – High Court upheld award passed by Labour Court –

Whether since NO DATE was fixed for payment of said allowance, but dates were fixed in proceedings before Labour Court, payment made by appellant after order of Labour Court closing evidence could not be held arbitrary in any manner – HELD, YES.

Whether after a long passage of time, it would not be proper to direct reinstatement with back wages, and interest of justice would be met, if MONETARY COMPENSATION of Rs. 2 lakhs was to be paid to workman in full and final settlement of his claims – HELD, YES.

In the case of National Insurance Co. Ltd. v Sanjay Shivhare & others à The National Commission reconsiders its own conflicting judgments on "Whether an insurance claim is payable when there is a breach of policy terms" and now settles the law.

HELD that, even if there was a breach of the terms of the policy in respect of its use as a taxi or for hire or reward, the GUIDELINES specifically provided that in such cases 75% OF THE AMOUNT should be paid as a NON-STANDARD CLAIM.

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